Publication date: 28.07.2024
Lawyer
Registering a company in Cyprus: a step-by-step guide
Thanks to its strategic location, favorable tax climate and developed infrastructure, Cyprus has become an attractive place for international companies to register. In this article, we will look at the process of registering a company in Cyprus and provide useful tips for the successful start of your business.
Advantages of company registration in Cyprus
Before starting the registration process, it is worth considering the main advantages of doing business in Cyprus:
- Low corporate tax rate (12.5%)
- Membership in the European Union
- Developed banking system
- Favorable legislation for business
- The possibility of obtaining a residence permit for company owners
A legal analysis of the situation shows that these factors make Cyprus an attractive place for entrepreneurs from all over the world, especially for those who plan to do business in Europe.
Types of companies in Cyprus
In Cyprus, there are several types of companies that can be registered by foreign investors. Legal analysis of documents will help you choose the most suitable form for your business:
- Private Limited Liability Company (Ltd)
- Public Limited Liability Company (Plc)
- A company with guarantees
- European company (SE)
Consulting a lawyer will help you understand the specifics of each type and choose the best option for your business.
Steps to register a company in Cyprus
The process of registering a company in Cyprus is quite structured, but may require some time and effort. Here are the main steps you need to go through:
- Selection and reservation of the company name
- Preparation of constituent documents
- Opening a bank account and depositing authorized capital
- Submission of documents to the Register of Companies
- Obtaining a registration certificate
- Registration with tax authorities and social insurance funds
A lawyer's legal opinion at each stage will help to avoid mistakes and speed up the registration process.
Necessary documents for registration
Verification of documents by a lawyer is critical for successful registration. Here is a list of the main documents you will need:
- Founding agreement and company charter
- Copies of passports of directors, shareholders and beneficial owners
- Confirmation of the address of the registered office in Cyprus
- Power of attorney for the representative who will perform the registration
- Documents confirming the source of funds
Document analysis by a professional lawyer will help avoid delays in the registration process and ensure compliance with all requirements of Cypriot legislation.
Features of taxation in Cyprus
Cyprus is known for its attractive tax system. A legal analysis of the situation shows that companies in Cyprus enjoy the following advantages:
- Corporate tax in the amount of 12.5%
- No capital gains tax (with the exception of real estate transactions)
- A wide network of agreements on the avoidance of double taxation
- Exemption from tax on dividends for non-residents
- Possibility of using IP Box mode for companies dealing with intellectual property
Consulting a lawyer will help you develop an effective tax strategy for your company in Cyprus.
Requirements for directors and shareholders
Cypriot legislation establishes certain requirements for directors and shareholders of companies:
- The minimum number of directors is one
- The minimum number of shareholders is one
- Directors and shareholders can be both natural and legal entities
- Some activities require the presence of a local director
A legal analysis of the situation will help you properly structure the management of your company and meet all legal requirements.
Client case: successful registration of a holding company in Cyprus
We were recently approached by a client who planned to create a holding structure to manage their European assets. After conducting a legal analysis of the documents, we recommended registering a private limited liability company in Cyprus. Thanks to the legal opinion of a lawyer and professional support at every stage, the registration process was completed in 4 weeks. The company is now operating successfully, taking advantage of the Cypriot tax system and the convenience of doing business in the EU.
The most common problems when registering a company in Cyprus
In the process of registering a company in Cyprus, entrepreneurs may face certain difficulties. Here are some of the most common problems and ways to solve them with the help of a lawyer:
- Delays in reserving the company name
- Difficulties with opening a bank account
- Non-compliance of documents with the requirements of the Register of Companies
- Difficulties with obtaining a tax number
A lawyer's written consultation and legal opinion will help avoid these problems or solve them effectively.
Recommendations for successful registration and doing business in Cyprus
For successful registration and further business in Cyprus, you should follow the following recommendations:
- Carefully study Cypriot legislation and the specifics of doing business in the country
- Enlist support an experienced local lawyer or consultant
- Develop a clear business plan and company development strategy
- Ensure that your activity meets the requirements for economic presence
- Regularly conduct a legal analysis of your company's documents and activities
Features of economic presence in Cyprus
Since 2019, Cyprus has introduced economic presence requirements for resident companies. A legal analysis of the situation shows that in order to comply with these requirements, the company must:
- Have a real office in Cyprus
- Hire qualified personnel
- To hold meetings of the board of directors in Cyprus
- Make key management decisions on the territory of the country
Legal advice can help you develop a strategy to ensure compliance with these requirements and avoid potential problems with the tax authorities.
The role of the company secretary
In Cyprus, every company must have a secretary who is responsible for administrative matters and compliance with corporate procedures. Legal analysis of documents shows that the company secretary performs the following functions:
- Keeping the register of shareholders and directors
- Preparation and submission of annual reports
- Organization of general meetings of shareholders
- Storage of corporate documents
Document analysis by a professional lawyer will help you choose a qualified secretary and ensure proper corporate governance of your Cyprus company.
Registering a company in Cyprus provides entrepreneurs with a number of advantages, including a favorable tax regime and access to the European market. Although the registration process may seem complicated, with the right approach and professional legal support, you can successfully register your company and start operating in this promising jurisdiction.
For detailed lawyer's consultation and professional assistance in registering a company in Cyprus, we recommend contacting the CONSULTANT legal marketplace. Here you will find qualified lawyers and attorneys who specialize in international business law and have experience working with Cypriot companies. An lawyer online is always ready to provide you with the necessary support and ensure the successful start of your business in Cyprus.
