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Cyprus |
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Benefits of
Cyprus
Cyprus is an island situated in the
north-eastern corner of the Mediterranean Sea, at the crossroads
of Europe, Asia and Africa. This strategic position, together
with many tax incentives, have been the major factors in shaping
the island’s development into an international business and
professional services centre. Cyprus is a member of the United
Nations, the Commonwealth, the Council of Europe and has applied
for membership to the European Union.
Apart from the strategic location of the
island, and easy access by air and sea, Cyprus provides many
additional attractions to foreign investors.
Under Cyprus Law, the most common legal
entity used by foreign enterprises is the private company
limited by shares. The governing corporate legislation is the
Company Law, Cap. 113.
The time-scale for incorporation is about
one week, however “off-the-shelf” companies are also available.
All companies must prepare a Memorandum and Articles of
Association. Also, the name of the company has to be approved by
the Registrar of Companies.
There are no legal requirements regarding
the amount of the share capital of a company. Every company must
have at least two shareholders and one director. To comply with
the legislation each company must appoint a secretary.
Other
Benefits of
Cyprus
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Substantial tax
incentives. |
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Low set up and operating
costs for offshore companies. |
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Freedom in movement of
foreign currency. |
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Double taxation treaties
with 28 countries, including Canada, the United States of
America, the United Kingdom, France, Germany, Russia,
Denmark, Norway, Sweden, Greece, etc. |
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Modern and efficient
legal, accounting and banking services, based on English
procedures. |
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Skilled professional staff
at all levels. |
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The possibility to acquire
business premises or property for the residence of
expatriate employees. |
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Very efficient
telecommunication systems. |
Questions
&
Answers
regarding
Companies in
Cyprus
A. The
Structure of a Company.
1. What Documents are required to Incorporate a
Company?
All companies must prepare a Memorandum
and Articles of Association. The Memorandum states the
objectives of the company i.e. the nature of its activities and
the Articles of Association states rules governing the internal
management of the company. Apart from the aforementioned
documents, Cyprus requires statutory declaration of compliance
declaring that all requirements of the Companies Law, Cap.113
have been complied with.
The name of the company has to be approved
by the Registrar of Companies. This procedure usually takes 2-4
days. However, off-the-shelf companies are also available. If it
is considered necessary, the name of the company can be changed
at a later date. In this case the whole procedure can be
completed within three days from the date of approval of the
company’s name.
2. Capital Requirements.
There are no legal requirements regarding
the amount of the share capital of a company. However, the
recommended authorised and issued share capital is CyP 1,000.
Companies wishing to have their administrative offices in Cyprus
must have an issued share capital of at least CyP 10,000. Such
companies may also enjoy, and take advantage of, Duty Free
concessions.
3. Disclosure of Beneficial Ownership
to Authorities.
Disclosure of the true beneficial owner is
required under the Exchange Control Law, Cap. 199 for the
establishment of the company and the subscription for the shares
by non-residents of Cyprus.
4. Classes of Shares Permitted.
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Registered
Shares. |
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Preference
Shares. |
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Redeemable
Shares. |
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Share Warrants. |
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Shares with or
without voting rights. |
B.
Provisions in the Act relating to the Management and
Administration of the Company.
1. Directors.
In case of a public company the minimum
number of directors is two and in the case of a private company
the minimum number is one. There are no nationality or residency
requirements.
2. Shareholders.
Each company must have at least two
shareholders. One non-resident person may register an offshore
company by appointing two nominees to hold the shares in trust.
3. Company Secretary.
To comply with the legislation each
company has to appoint a secretary.
4. Registered Office.
The company must maintain a registered
office in Cyprus.
5. Financial Statement Requirements.
A company must keep proper books of
accounts and particularly in respect of all sums of money
received and paid, all sales and purchases of goods and assets
and liabilities. The accounts are filed with the local tax
authorities and must be audited by appropriately licensed
accountants in Cyprus.
Notes
(1) For a copy of a full set of documents
to be made apostille in the jurisdiction will be free of charge.
(2) For further information about our
prices please see our web page
www.comed.net.
We are not responsible for any
forthcoming changes concerning the rules and regulations of the
jurisdiction.
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