Registration of a Cyprus Company Limited by shares
Cyprus stands out as an exceptionally appealing destination for registering a company, offering a corporate tax rate of merely 12.5%, one of the lowest in the European Union. This Mediterranean island is increasingly becoming a preferred choice for international business professionals seeking advantageous alternatives for their corporate affairs. Furthermore, Cyprus has solidified double tax agreements with over 60 countries, mitigating the risk of double taxation on the same income in two states and ensuring consistent treatment for cross-border trade.
Beyond the tax advantages, investors can capitalize on significant incentives introduced by the Cypriot government, such as the non-domicile (Non Dom) regime. Under this regime, individuals can receive tax-free income from dividends, rent, and interest, enhancing the overall appeal for foreign investors.
Navigating and leading a business in Cyprus proves beneficial due to its modern, free-market, service-based economy. This environment instills confidence in both international investors and domestic businesses, fostering an atmosphere conducive to investment, growth, and prosperity.
Procedure for Company Registration:
The majority of companies registered in Cyprus are private limited liability entities, governed by Cyprus Companies Law, CAP 113, based on the UK’s Companies Act 1948. The company formation process unfolds as follows:
1. Approval of Company Name:
The registration process commences with an application to the Registrar of Companies, seeking formal approval for the company name.
2. Memorandum of Articles and Association:
Following name approval, detailed information about the company’s activities, share capital, internal regulations, etc., is submitted to the lawyer for the preparation of the Memorandum of Articles and Association.
3. Minimum Capital:
Cyprus companies typically have authorized and issued share capital of €1,000, but there is no minimum requirement for a Private Limited Company.
Each company must appoint at least one shareholder, who can be a physical person or a legal entity. Additionally, Cyprus Limited Companies must appoint at least one director and one secretary.
5. Registered Office:
The registered office of the Cyprus Company must be located in Cyprus.
6. Registration Timeframe:
The entire process of registering a company in Cyprus usually takes about 8-10 days.
7. Annual Returns and Financial Statements:
Companies in Cyprus are obliged to annually prepare financial statements based on International Financial Reporting Standards, audited by a licensed independent certified auditor. Audited accounts and the annual return must be filed with the Registrar of Companies within 18 months from the incorporation date and subsequently on an annual basis.
Cyprus Registrar of Companies Fees
Every company registered on the Registrar of Companies in Cyprus must pay a fee of €350 per year.
If you are interested in registering a company in Cyprus, reach out to us using the form below to speak to one of our Lawyers in Cyprus.