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Register a company in Cyprus

Efstathios K. Efstathiou > Corporate Law > Register a company in Cyprus

If you are considering expanding your business or starting a new venture in Europe, Cyprus presents an enticing opportunity. With its favorable business environment, strategic location, and membership in the European Union (EU), Cyprus is a popular destination for company registration. This guide will serve as your comprehensive resource, providing step-by-step instructions, legal requirements, and the benefits you obtain when you register a company in Cyprus.

 

Why Register a company in Cyprus

 

Cyprus offers numerous advantages that make it an attractive destination for company registration:

 

  1. Strategic Location: Situated at the crossroads of three continents – Europe, Asia, and Africa – Cyprus offers easy access to regional markets and trade routes.
  2. EU Membership: As an EU member state, Cyprus provides businesses with access to a large market of over 500 million consumers. This facilitates trade and opens up opportunities for expansion across Europe.
  3. Favorable Tax Regime: Cyprus has a competitive tax system, including a low corporate tax rate of 12.5%, making it an appealing choice for international businesses.
  4. Robust Legal Framework: Cyprus has a well-established legal system based on EU regulations and principles, ensuring transparency, reliability, and protection for investors.
  5. Skilled Workforce: Cyprus boasts a highly educated and multilingual workforce, offering a pool of talented professionals to support your business operations.

 

Legal Requirements for Company Registration

 

Before registering a company in Cyprus, it is essential to understand the legal requirements involved. Some key considerations include:

 

  1. Minimum Capital Requirements: Cyprus does not require a minimum capital for company formation. However, the amount of capital invested may affect eligibility for certain permits or licenses, so it is advisable to consult with a legal professional.
  2. Legal Address and Registered Office in Cyprus: A registered office address is mandatory for all Cyprus companies. This address will serve as the company’s official correspondence address and must be an actual physical location in Cyprus.
  3. Choosing a Suitable Corporate Entity: Cyprus offers several options for company registration, including private limited companies (Ltd.), public limited companies (PLC), and partnerships. It is essential to select the most suitable corporate structure based on your business objectives and requirements.

 

Step-by-Step Guide to Registering a Company in Cyprus

 

To register a company in Cyprus involves several steps. Here is a simplified guide to the process:

 

  1. Name Reservation Process: Start by choosing a unique and appropriate name for your company. Submit the proposed name to the Cyprus Registrar of Companies for approval.
  2. Preparation and Submission of Supporting Documents: Prepare the necessary documentation, including articles of association, director and shareholder details, and the company’s registered office address. These documents will be submitted to the Registrar of Companies.
  3. Filing the Application for Company Incorporation: Complete the necessary application forms and provide all required information and supporting documents. Pay the relevant fees at the time of submission.
  4. Review and Approval from Registrar of Companies: The Registrar of Companies will review the application and supporting documents. If everything is in order, they will issue a Certificate of Incorporation, marking the successful registration of your company.

 

Costs and Pricing for Registering a Company in Cyprus

 

The cost to register a company in Cyprus varies depending on various factors, such as the desired corporate structure and the services required. Some costs to consider include:

 

  1. Registration Fees and Set-Up Costs: These include the application fee, legal fees, notary fees, and charges for services such as name reservation and document preparation. The total cost will depend on the complexity of the registration process.
  2. Factors Affecting the Cost of Company Registration: The specific services you require, such as legal advice, tax planning, and company secretary services, can impact the overall cost. It is crucial to discuss these requirements with a trusted legal service provider who can provide a transparent breakdown of costs.
  3. Comparison of Service Providers: When choosing a legal service provider for company registration in Cyprus, consider their expertise, reputation, and track record. Request quotes and compare the services offered to find a provider that offers the best value for your needs.

 

Advantages of Registering a Company in Cyprus

 

Registering a company in Cyprus offers several advantages for business growth and success:

 

  1. Access to European Union (EU) Market: Cyprus’s EU membership grants companies the opportunity to benefit from the free movement of goods, services, and capital within the EU. This facilitates trade and expansion across the European market.
  2. Lower Tax Rates and Incentives: Cyprus has one of the lowest corporate tax rates in the EU at 12.5%. The country also offers various tax incentives, including exemptions on certain types of income, dividends, and capital gains.
  3. Protection of Intellectual Property Rights: Cyprus has strong intellectual property laws and is a signatory to international treaties and conventions. Registering your company in Cyprus ensures the protection of your trademarks, patents, and copyrights.
  4. Business Opportunities and Networking: Cyprus provides a vibrant business environment with opportunities for networking, collaborations, and partnerships. The country hosts various business events, trade fairs, and conferences, fostering connections and growth.

 

Registering a company in Cyprus is an excellent choice for those seeking to expand their business in Europe. With its strategic location, favorable tax regime, and robust legal framework, Cyprus provides a business-friendly environment for growth and success. By following the step-by-step guide outlined in this resource and seeking professional legal services, you can navigate the company registration process smoothly, ensuring compliance with all legal requirements. Take advantage of the opportunities Cyprus has to offer and embark on your journey to business success. Get in touch today and enjoy our Corporate Legal Services in Cyprus.

FAQs – Frequently Asked Questions

Can a non resident open a company in Cyprus?

Non-residents can open a company in Cyprus by following specific steps and requirements. Some common steps for non-residents to start a company in Cyprus include choosing a suitable business structure (e.g., Limited Liability Company) and complying with the relevant company laws as set by the Companies Law of Cyprus. Key steps may involve choosing an appropriate company name, preparing and submitting necessary legal documents such as the Memorandum and Articles of Association, obtaining any required licenses or permits for the business, and registering for taxes and social security contributions. The process may also involve meeting certain residency and regulatory criteria to establish a business presence in Cyprus.

How long does it take to set up a company in Cyprus?

While it is difficult to provide an exact timeframe, it typically takes several weeks to complete the registration process and obtain all the necessary approvals and documentation.

The process of setting up a company in Cyprus usually involves tasks such as choosing a business structure, registering the company name, drafting and submitting the Memorandum and Articles of Association, obtaining any necessary permits or licenses, and opening a bank account.

It is important to note that engaging the services of a qualified lawyer or professional service provider experienced in company formation in Cyprus can help streamline the process and ensure compliance with all legal requirements.

What are the benefits of registering a company in Cyprus?

Registering a company in Cyprus offers several benefits that may be advantageous for business owners. Some of the advantages include:

Tax Benefits: Cyprus offers a favorable tax regime for companies, with a corporate tax rate of 12.5%. Additionally, Cyprus companies may benefit from tax exemptions on dividends received and disposal of securities.

Intellectual Property Benefits: A Cyprus company pays a low tax rate of 2.5% on profits from intellectual property rights such as patents and trademarks.

Residency and Visa: Incorporating a company in Cyprus can provide the real owner and their family members with the right to a long-stay visa for two years, renewable, and work rights.

European Union Membership: Cyprus is a member of the European Union, offering companies access to EU markets and regulations.

Strategic Location: Cyprus’s geographical location in the Mediterranean region serves as a strategic gateway between Europe, the Middle East, and Africa, facilitating international business activities.

Legal and Regulatory Environment: Cyprus has a robust legal framework and regulatory environment that provides stability and protection for businesses operating in the country.

What are the requirements for a company in Cyprus?

To register a company in Cyprus, there are specific requirements that businesses need to meet. The requirements to set up a company in Cyprus include:

Company Structure: Companies can be structured as limited liability companies (LLCs), partnerships, public companies, or sole proprietorships. Most companies established in Cyprus are LLCs, which can either be private or public.

Share Capital: The minimum share capital required to form an LLC in Cyprus is €1,000. At least 25% of the share capital should be subscribed and paid for on incorporation.

Directors: At least one director is required for an LLC in Cyprus, and the company must have a registered office address in Cyprus. The director(s) can be of any nationality and residency and can be an individual or a corporate entity.

Shareholders: A minimum of one shareholder is required to establish an LLC in Cyprus. Shareholders can be of any nationality and residency, and there are no restrictions on foreign ownership.

Company Name: The company name should be unique and not already in use by an existing company. It should also not contain any offensive or prohibited language.

Legal Documents: To incorporate a company in Cyprus, legal documents such as the Memorandum and Articles of Association need to be prepared and submitted to the Registrar of Companies.

Bank Account: A bank account needs to be opened in Cyprus to deposit the share capital and for subsequent business transactions.