Company Formation Services
Cyprus Incorporation Services
Cyprus is the third largest island in the Mediterranean after Sicily and Sardinia. Located in the north-eastern end of the Mediterranean Sea Cyprus is effectively a crossroads linking Europe, Asia and Africa. It covers an area of 9,251 sq km and lies 65 km south of Turkey, 96 km west of Syria, 385 km North of Egypt and some 980 km south-east of Athens. The capital is Nicosia. The principal topographical features of Cyprus are the two mountain ranges running along the centre and north-east of the Island, separated by a wide and fertile plain. Cyprus has a pleasant climate with dry, hot summers and mild winters.
The population of Cyprus is about 802,500. Greek Cypriots form the largest ethnic community representing approximately 85%; Turkish Cypriots comprise the second largest community representing 12% and the remaining 3% representing other minorities.
Cyprus became an independent Republic in 1960. The political system is modelled on Western democracies in which individual rights are respected and private enterprise is given every opportunity to develop. Under its Constitution, Cyprus has a presidential system of Government. The President is the Head of State and is elected for a five-year term of office.
The executive arm of the Government is the Council of Ministers to which the President appoints members. The Ministers are responsible for the administration of all matters falling within the domain of their ministries and for the implementation of legislation. Legislative power is in the hands of the House of Representatives, which consists of 56 elected members who hold office for a period of five years. A multi-party system operates in Cyprus and the electoral system is based on proportional representation.
The legal system is based on that of the United Kingdom and all statutes regulating business matters and procedure are based on English Law. Most laws are officially translated in to English.
Iinfra-Structure and Economy
Cyprus is readily accessible by air and sea. The major port facilities are those of Limassol and Larnaca, situated along the south coast of the Island.
The economy of Cyprus is based on a free enterprise system. The Government’s role is limited to regulation, planning and the provision of public utilities. During the last fifteen years, the economy of Cyprus has demonstrated spectacular growth and its currency has enjoyed relative stability.
Greek and Turkish are the official languages of Cyprus but English is widely spoken and understood, particularly in commercial and government sectors.
Type of Law
Commom Law with Civil law influences on Family and Constitutional/ Administrative Law mainly.
Main Corporate Legislation
The companies’ law in Cyprus is the Cyprus Companies Law, Cap.113, which is based on the English 1948 Companies Act. Single member companies were introduced by the Companies (Amendment) Act 2000 and other amending legislation was passed during the last decade for modernising and improvising purposes.
Cyprus Company Any Information
When wholly foreign-owned, a private company is referred to as an international business company. On 1 st January 2003 the favorable tax regime previously available to IBC’s was abolished and all companies are now taxed on the same basis.
Type of Company For International Trade and Investment
Company Limited by shares which is subdivided into:
(a) Public companies and
(b) Private companies which are also subdivided into:
i. Exempt Private Company
ii. Limited Private Company
Company Limited by guarantee
The Partnerships and Business Name Law, Chapter 116, also provides for two general types of Partnerships:
a) General Partnership
b) Limited Partnership
Procedure to Incorporate
By submission of the Memorandum and Articles of Association to the Registrar of Companies, together with an affidavit before a Court and the appropriate registration fee. The powers and objects of a Cyprus Company are contained within the Memorandum & Articles of Association and have to be specific.
Restrictions on Trading
Cannot undertake to the business of banking, insurance or the rendering of financial services to the public unless special permission is granted. Companies cannot trade with resident individuals or companies situated in Cyprus.
Language of Legislation and Corporate Documents
English and Greek
Registered Office Required
Yes, must be maintained in Cyprus
Time to Incorporate
Approximately five days, subject to name approval
Any word that the Registrar considers undesirable. Any name that is identical or similar to an existing company or sounds similar. Any name that implies illegal activity or implies royal or government patronage.
Language of Name
Names may be expressed in Greek or any language using the Latin alphabet if the Registrar is in receipt of a Greek or English translation and the name is not considered undesirable.
Names Requiring Cosent or License
The following names or their derivatives require consent or a licence:
“Asset Management” “Asset Manager”, Assurance”, “Bank”, “Banking”, “Broker (s) / Brokerage”, “Capital”, “Credit”, “Currency (ies)”, “Custodian(s)”, “Custody”, “Dealer(s)” “Dealing”, “Deposit(s)”, “Derivative (s)”, “Exchange”, “Fiduciary (ies)”, “Finance”, “Financial”, “Fund (s)”, “Future (s)”, “Insurance”, “Lending”, “Loan(s)”, “Lender(s)”, “Option(s)”, “Pension(s)”, “Portfolio”, “Reserves”, ‘Savings”, “Security(ies)”, “Stock”, “Trust”, Trustees” their foreign language equivalents or any name that the Registrar considers may have a connection with the aforementioned.
Suffixes to Denote Limited Liability
Limited or Ltd
Disclosure of Beneficial Ownsership to Government Authorities
The identity of the beneficial owners of a Cyprus Company may remain confidential if nominee shareholders are engaged to act as the shareholder on behalf of the ultimate beneficial owners. This confidentiality is maintained as long as the company and its ultimate beneficial owners are not involved in any criminal activity.
Key Corporate Features
|Type of entity:||Private (Resident/Non-Resident)|
|Type of law:||Common|
|Shelf company availability:||Yes|
|Our time to establish a new company:||5 days|
|Minimum government fees (excluding taxation):||€350|
|Corporate taxation:||Resident Limited: 12.5%
|Double taxation treaty access:||Yes|
Share capital or equivalent
|Minimum paid up:||€1,000|
|Local required:||No, but advisable for purposes of tax residency|
|Publicly accessible records:||Yes|
|Location of meetings:||Anywhere, but Cyprus advisable for purposes of tax residency|
|Publicly accessible records:||Yes|
|Location of meetings:||Anywhere|
|Local or qualified:||No, but Cyprus advisable for residency and compliance|
|Requirement to prepare:||Yes|
|Requirement to file accounts:||Yes|
|Publicly accessible accounts:||No|
|Requirement to file annual return:||Yes|
|Change in domicile permitted:||No|
* When wholly foreign-owned, a private company is referred to as an International Business Company
Authorised and Issued Share Capital
The share capital may be expressed in Euros or in any other currency. The usual authorised share capital of a Cyprus IBC company is € 5,000 and the minimum issued capital is € 1,000.
Classes of Shares Permitted
Registered shares of par value, preference shares, redeemable preference shares and shares with no voting rights.
Financial Statements Required
Amendments made in 2003 to the Companies Law as part of the EU accession process included the following changes:
Every company must prepare a full set of financial statements in accordance with International Financial Reporting Standards, and every parent company that has one or more subsidiaries, other than a company which is itself a wholly owned subsidiary, should present consolidated financial statements.
Under article 120, every company must complete an annual return within a period of 42 days from the date of its Annual General Meeting and must file immediately with the Registrar of Companies, a copy of the annual return, signed by a director and the company secretary. Under article 121, the annual return filed with the Registrar of Companies must be accompanied by the full set of financial statements.
The minimum number of directors is One. They may be natural persons or bodies corporate, be of any nationality and need not be resident in Cyprus. For establishing tax residency in Cyprus is it is advisable to use resident directors.
All Cypriot companies must appoint a company secretary, who may be a natural person or body corporate. It is advisable to appoint a resident company secretary.
The minimum number of shareholders is one.
Cyprus, one of the smallest European low tax jurisdictions, is a suitable place for locating an intermediary company due to the island’s combination of tax treaties and low-tax regime. Dividends can flow through the Cyprus company totally tax free and the company can be used to take advantage of the extensive network of double tax treaties.
What separates us from our competitors is that our services don’t end with the registration of your company. We offer a wide range of additional services others can’t or just won’t offer, such as lifetime free support.
Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types.
Therefore TBA combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs.
Should you have any question or matter
You would like to discuss or clarify with us
Should you like to receive further Information
About our services and fees, …
Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.
You may call or email us, and we will be happy to assist you in a fast and efficient manner.
You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.