Types Of Cyprus Company

Any physical person of age and any legal entity irrespective of nationality can own a company. A company in Cyprus is also called an IBC, or Cyprus IBC which means a Cyprus International Business Company. Follow this link if you want to read more about a Cyprus IBC. The most common Cyprus company formation is a private company limited by shares, and of course as the name suggests it is of limited liability. That means that its members ( the shareholders) of the company are only liable to the extent of the value of the shares they own in it. The large majority of companies involve limited liability companies. However the law in Cyprus allows for the formation of other types of legal entities too such as:

1.  A private company limited by guarantee.
2.  A private exempt company.
3.  A partnership either general or limited.
4.  A public company limited by shares.
5.  Cyprus sole proprietorship (Law , Cap 116).
6. A non-profitable organization.
7. A Cyprus local or offshore or international trust.
8. A club.

Cyprus Company Formation Can Be Done in Your Absence

A Cyprus Company Formation can be done without your personal presence on the island. All the procedures can be done by email and courier thus saving you precious time and money. All you have to do for a Cyprus company formation,is get in touch with us, tell us the name you like for your company and our firm will do the rest for your Cyprus company formation. If you want to visit the island however, apart from the fact that we will be happy to see you, you will have the chance to see the island, get acquainted with its banking system and the business environment, meet your bankers and of course taste the exquisite local cuisine. If you want to read more about company formation and the Cyprus company generally Cyprus Company Incorporation is a very interesting article full of technical information.

Cyprus Company Formation: The Company Kit

Cyprus company formation: A client who incorporates a company in Cyprus will receive from our firm a company folder (or kit) which contains all the incorporation Certificates. The Company kit also includes a welcoming letter, the nominee deed of trust, the nominee transfer of shares agreement, and a share certificate.You can also find there a tax advice letter and the memorandum and articles of association, the Cyprus income tax registration documents with a Cyprus income tax number (T.I.C) as well as the Cyprus Vat Registration document and a Cyprus vat registration certificate in Greek. Finally in the company incorporation kit there is a list enumerating all documents contained in your Cyprus company kit such as the indemnity signed by the U.B.Os for using the company in Cyprus in a legal and proper way and of course your p.o.a if you need one(Power of Attorney). Your Cyprus company can be fully incorporated in 4 days.

Services Available After A Cyprus Company Formation

1. Nominee Services-Full Anonymity

By using nominees on a Cyprus company registration at usually very competitive fees from E R TEAM Global Consultants LTD you save a lot of time and expense. The people we offer for nominee services are always persons from our office so that their honesty, professionalism, integrity and confidentiality are always guaranteed! Under the guidance and supervision of our legal department, they will execute their duties diligently, responsibly and always with integrity, so that companies will abide by the laws and regulations and your interests are safeguarded. At any stage the beneficial owner of the company can restrict the authority of the nominees by the signing of a trust instrument with them through which they undertake to use their powers only as instructed in writing by the beneficial owner.

At the stage of its registration a trust deed is also executed in his favor, by the nominee shareholders who undertake not to deal with the shares in any way, unless told so, by the beneficial owner in writing. They also execute and deliver to him, an open date share transfer document, signed sealed and witnessed, so he can at any moment file the document and transfer the shares into his name or anyone else`s name. If you need to keep your anonymity, then the best way is to use a nominees. For companies in Cyprus the name of the beneficial owner is never disclosed to the authorities nor is it disclosed to the authorities of any third countries. So at the stage of the Cyprus Company Registration, you can ask our firm to provide nominee directors and or shareholders. It can be done later if you like too but it will involve costs and time waste.

2. Nominee Directors

• Who can act as a nominee director?
• What powers does he have according to the legislation?
• Can he harm my interests? How can I restrict his powers?
• How can I take over his powers?

A Cyprus company can have as many directors it needs. The minimum is one director.There is an answer to all your questions. Let’s take them one by one. Any male or female person of sound mind and of age, who has not declared bankruptcy, can be appointed to act as a nominee of any company in Cyprus. A company director is the most important person in the company structure, especially if he is the sole director, i.e. he is the only director, since lately with an amendment of the legislation a company can have only one director and one shareholder.

The directors can exercise all the powers as those are provided for by the memorandum and articles of association on the Cyprus company registration! That is we take particular care always to use as nominees, persons whose integrity and honesty cannot be disputed. You can restrict his powers by signing the trust instrument, cited above, with him, by which you curtail his powers under the threat of legal action and indemnity. Of course we stress again that the persons used by our company are beyond suspicion. Finally you can take over the powers of the nominee director at the stage of the Cyprus Company Registration or even at a later stage, by securing a power of attorney from him which empowers you, or anyone else to exercise all or some of the company`s powers! A power of attorney can be a general or a special power of attorney! The legislation allows a company to have one director only if so desired!

3. Nominee Shareholders on Cyprus Company Formation

The most frequently asked questions about the shareholder, by foreign investors, are:

• Who can be a nominee shareholder, what are his powers in the company?
• Can he hurt my interests?
• What can I do to safeguard against that?
• How can I deprive him of his powers if I want to?

A Cyprus company can have 50 shareholders maximum and one minimum. A nominee shareholder is usually appointed to provide confidentiality for the real owner of the company. He is a person whom we will use to be the shareholder, in each case that the beneficial owner needs to keep his anonymity. This person again, is one who is closely associated with our firm, and the real owners are persons of the utmost trust, integrity and honesty.
Any person of age, regardless of sex, provided he/she has not been declared bankrupt can be a nominee shareholder. In order to secure your interests he will sign for you, the so called deed of trust, by which he undertakes not to deal with the shares in any way, unless he has express written instructions from you, the beneficial owner of the company. He also undertakes not to use the powers allotted to him by the shares, i.e. to appoint new directors, or a new secretary etc. unless again expressly instructed in writing by the beneficial owner. The nominee shareholder will also sign a document called the share transfer agreement, by which he executes an open date share transfer, duly signed and witnessed. All you have to do is to fill in your name or the name of any other person, sign and seal, and witness it, and the shares change ownership, by the filing of the said document at the registrar of companies! By the legislation, a company may have only one shareholder.

4. The Secretary

A Secretary is appointed as required by the Company Law. A company can have one or more secretaries. Here again, the same questions can be asked for the nominee secretary, as for the other nominees. Again for confidentiality reasons a nominee secretary is appointed. A nominee secretary does not have many. A nominee secretary`s participation in the day to day and the serious running of the business is minimal and peripheral. His powers are formal. They are restricted to the signing of mostly bank documents when opening an account or securing loans, when filing the income tax accounts, he keeps the register of members, the register of directors, he sends out the notices for the meetings of the board and so on. Of course it goes without saying that we use as secretaries persons who can be trusted absolutely. A secretary however is necessary by the legislation. One secretary is enough. There can be two or more if required. His duties and powers may be increased or reduced by the directors. Our firm offers very reasonable fees for many legal and corporate services.

5. Bank Account After Registration of Cyprus Company

After the Cyprus company registration a bank account can be opened for it very easily in one of many banks in the country. Opening a bank account can be done in the absence of the foreign investor fast and fuss free. A bank account offers all the necessary services needed for a professional such as internet banking, visa card, digipass, multicurrency, low bank fees, no minimum deposit terms and fast and free transfer of money in and out of the country. We work with many banks in and out of the country for fast bank accounts. We are official introducer to dozens of banks so after the Cyprus company registration a bank account can be opened as a matter of routine and at very reasonable fees. Just call us or email us for more details.

6. Vat Number Can Be Had on the Cyprus Company Registration

A Cyprus company on its registration can apply for a vat number. Such procedure is fast in Cyprus and a vat registration number can be had in about forty eight hours. Our office can get you your vat number without fuss and you can begin trading immediately. On the registration with the vat authority a certificate is issued and a number which will show in the EU vat system in about 4 days maximum. That number must be shown on all the invoices of the company and on all it stationary material. Vat tax is payable in the country only if you physically import the goods into the country. The vat tax is 19% at the moment for the general categories but there are also lower rates for special cases.

7. Cyprus Company Formation: Virtual Office and Virtual Office Services

Our company on the completion of your Cyprus company formation, offers all the virtual office services to companies after their registration in Cyprus. We can offer business address, package forwarding, exclusive telephone number, secretarial services, correspondence forwarding, serviced office spaces etc. Such services can be paid for by the month or by the year.