Cyprus Company Registration for 2021
Updated 14 June 2021
The registration of Cyprus Company is very simple and the formalities required are minimal.
- Copy of your passport
- A Utility Bill in your name
- A CV
- Answer our questionnaire for your address, tel. no, email address etc.
- Choose a name for your company
That`s it. We begin on your company registration. In 6 days your company registration is completed and you can begin trading. You will need a VAT number and bank account. We get you the VAT Number in 2-4 days and a Bank Account in 10-15 days.
Our Firm has since 1979, been offering Registration of Cyprus Company to our international clients. We make it fast no fuss and simple for you. Your time is valuable. Contact us now for more information and quote of fees. Our Administrators respond within the hour!
The Tax and other legal and administrational benefits you will have by the registration of a Cyprus company are great. Visit our article Cyprus Company Incorporation for more reading.
The first step for the Registration of Cyprus Company (or IBC in Cyprus) is to choose a name. That name is submitted for approval by the Registrar of Companies at the time of the registration of Cyprus company. It usually takes 4 or 5 working days.
Registration of Cyprus Company : The Capital
On the Registration of Cyprus Company the share capital can be expressed in euro and there is no minimum or maximum. For practical purposes however and so that the company can be run in a practical and easy way we recommend a share capital of one thousand euro divided into 1000 shares of one euro each. There is no minimum of capital so a one share capital worth one euro will do. The capital does not have to be paid into the bank account of the company and it is not taxable in any way.
Registration of Cyprus Company : The Directors
A Registration of Cyprus Company involves the appointment of some Directors. They are the persons who will manage the company and run the everyday business of the company. The minimum number of Directors is one. The nationality of the Directors is immaterial. Many times, members of our company will be appointed as Nominee Directors in order to carry out board meetings and resolutions of the company in Cyprus. In this way management and control of the company is considered to be in Cyprus for tax purposes, so that you can enjoy the 12.5% tax benefit. Any person or legal entity such as another company can be a Director.
The Shareholders in a general meeting by a simple majority vote can appoint or remove any Director, with immediate effect.
The Shareholders are declared by the memorandum at the time of Registration of Cyprus Company. It is possible later for more shareholders to join the company. A Shareholder is by law the real beneficiary owner of the company and its property. It has the power to make decisions at the general meetings for appointing or dismissing the Directors. Although he is not an officer of the company he is the person who will eventually take the profits of the company. The minimum number of Shareholders can be one and the maximum is 50.
The Secretary of the Company
The Cyprus Company must have at least one Secretary. He is an officer of the company with particular duties and he is appointed by the Directors. The existence of a Secretary is required by the law. It is recommended that the Secretary of the company is a Cyprus resident because a lot of formal papers must be frequently signed by the Secretary. A Secretary can be an employee of the Company who gets a salary for his services or he can act as an officer without a salary.
What is the Memorandum?
The memorandum of the company as the word itself suggests is a MEMO of the objects of activities of the company and it is submitted for approval by the Registrar at the registration of a Cyprus company. It is a very important document of the company because it must set out in detail all the company`s activities otherwise if the Directors enter into an agreement for the purchase of immovable property for example and that is not included in the Memorandum the purchase is Ultra Vires, i.e. beyond the power of the company and it is void! A memorandum can be altered at any time by adding or removing from it new powers.
For the Registration of a Cyprus Company the Articles of Association are Necessary
The Articles of Association as the words themselves suggest are the provisions which regulate the relation or association between the various officers of the company, such as the Directors the Shareholders and the Secretary. It is a very significant document of the Company and it contains provisions such as the appointment or removal of the Directors, how shares can be sold or inherited, how is the Board of Directors going to function, how to hold the General Meetings of the Company, and many other important and crucial provisions.
The Registered Office
The law of Cyprus requires every company to have a registered office, address. This is submitted during the registration of the company to the Registrar of Companies and it is registered in his archives as the place where letters, documents, notices, lawsuits, from all the Authorities and from private individuals or legal entities may be sent, delivered or legally served. It is a very important part of the company structure. For example if a legal suit is not properly served at the registered office, then sometimes it is invalid and may be dismissed.
Tax Registration of the Company
Within thirty days of the Registration of Cyprus Company the company has to submit an application to the Revenue Department for its registration in the records. It is given a TIC number which is like an ID number of a natural person. Almost all EU corporations before starting an cooperation with a company ask to see the TIC number of a company. This number is mentioned everywhere when dealing with the Revenue Department, in communications, in the audited accounts on any Certificates issued by the RD etc.A Cyprus company has to file audited accounts once a year and to pay its taxes in Cyprus on all its net income worldwide. Our Accounting partners will cover all your needs for accounting, audit , vat , and vies services. See more details for Accounting Audit Services.
After the company is registered, a vat number can be secured at any time. The company must register with the VAT Office when it actually begins trading and issues its first invoice provided that it predicts that a total of sales of about 17000 will be done yearly. VAT declarations must be filed every three months and any vat tax payable paid. There are fines for non filing and for delaying the payment of the vat tax. If the vat tax is not paid the VAT Authority will file criminal proceedings against the company and its directors. The vat tax is paid at any bank. Vat tax is not charged if the company sells to countries outside the EU, or if it sells in the EU but sells B to B.
Nominee Director or Shareholder May be Appointed
Nominees are persons usually employed by our company to act on behalf of the real Directors and Shareholders of a Cyprus IBC registered in Cyprus. These are responsible persons and in this way your secrecy and confidentiality are secure. A Nominee Shareholder will sign an undated instrument of transfer of the shares to the real beneficiary. Also a trust deed will be executed in the necessary form to secure that the Nominee Shareholder cannot sell or in any way burden or alienate the shares.