All You Need to Know About Incorporating Your Company in Cyprus
Cyprus has long been one of the first options for people looking to incorporate off-shore corporations. The country provides a one-of-a-kind combination of a modernized free-market economy with a well-disposed tax regime, geopolitical advantages, and high human development index. Furthermore, being a member of the European Union and having a reputation for transparency and stability has its obvious advantages in global trade.
There are multiple options when it comes to the type of entity one wants to incorporate, like a public company, general or limited partnerships etc. The Private Company Limited is the most popular option by a huge margin though.
Vast Advantages Offered by Cyprus Jurisdiction
People looking to find new homes for their companies find uncomplicated and efficient procedures for incorporation. The whole process is quicker than most EU countries and won’t burn a hole through your pockets, leaving more funds to be invested in your dream venture. The corporate tax rate of 12.5% is one of the lowest in the world even among the low-tax countries. There are plenty of other benefits of incorporating a company in Cyprus, like taxation free – capital gains (except in case of disposal of real estate in Cyprus), dividends paid to non-residents, & dividend income. Cyprus also provides substantial protection in form of Double Tax treaties with more than 55 countries including almost all of the biggest economies of the world. Other significant advantages of incorporating in Cyprus can be found here.
The Pre-Requisites for Registration
- There is no provision for the required minimum share capital of a company in Cyprus.
- There needs to be a minimum of one director and one shareholder though they can either be a real person or a legal person (another corporation). There is no restriction on the nationality of either. However, having a Cyprus resident director allows a company to take advantage of the tax treaties with other countries as they can claim residency in Cyprus. The services of a Company Secretary would also be mandatorily required.
- An application for approval of the name of the company had to be made. This can be done for €10 and there’s a provision for an express application which costs €20 more and ensures processing within 2-3 days. There’s also a provision to apply online for name approval at the government portal of ARIADNI. However, finding skilled professionals to take care of all the formalities makes the entire process streamlined and hassle-free.
- The HE1 (Sworn Declaration), HE2 (Details of Company’s address), HE3 (Details of Directors, Shareholders, and Secretaries) forms need to be duly filled and submitted.
- The Articles and Memorandum of Association are statutorily mandated to be drafted by a registered lawyer.
- Registration fee, which includes the fee for the filing of the forms and documents, subscription tax on nominal capital, along with an optional fee for higher priority and sped up processing of the application.
The Registration Processes
The application for approval of name once submitted can be checked online. After all the aforementioned documents are submitted along with required relevant information the registration process completes mostly in about two weeks and much quicker, in 5 days, if the special express fee is paid. Once the Certificate of Incorporation is issued other formalities like Tax-ID and other optional registrations are easily done. A Certificate of Incorporation makes way for other important matters like company meetings, the appointment of secretaries, opening of bank accounts etc.
Privacy While Incorporating a Company
Concerns for privacy are readily solved by subscribing nominee services. Nominee services provide for nominee directors and shareholders so that the real owners of the company can protect their identities. This is a popular and safe process where the complete control of the company resides with the real owners and their privacy is protected by the nominees with no real interference from them in the running of the business.
The Quickest Way to Start Trade & Business
If one doesn’t prefer to wait 15 days for the registration process and wants to conduct immediate transactions through their company, there are systematic facilities to take over ready-made companies. These companies are pre-registered with approved generic names and general Articles & Memorandum of Association allowing for most types of businesses to conduct their affairs with ease.
- Documents submitted by Directors and Shareholders-
– Bank references
– Proof of Identity – Passport
– Proof of Residential Address etc
- The registered office of the company
The whole process of incorporation of a company is very business friendly in Cyprus and is custom made to facilitate the entrepreneurs and traders. Thus, one cannot go wrong when choosing it as the next destination to set up their new dream.