Do you want to open a company in Cyprus? The country has numerous opportunities for business growth both for citizens and foreigners. Its economy is stable, and existing businesses are willing to support new ones. Foreigners can easily use this opportunity to gain a Cyprus Permanent Residency by Investment. If it is time to register a new company in this state, you will need to follow these steps.
Additional Research
Before business people can start the process of company formation, there is some important information they need to know. The Cypriot government provides guidelines for all types of companies to follow. It is up to you to know under which category your company falls. For you to register a company, a memorandum of understanding must be drafted according to Cypriot rules. Also, you must prepare the list of directors and the company secretary.
Registering a Company
Here, you have two choices. The first is to use an off-the-shelf, pre-registered company – a ‘shelf company’ – where much of the effort has already been made. If you find a shelf company you are interested in buying and operating, it is prudent to partner with a corporate service like Meridian Trust to support you through the entire setup process. You might also find local specialists in Cyprus who can help you with shelf companies.
The second choice is to register a company from scratch. All companies in Cyprus are registered with the Department of the Registrar of Companies. The government has authorized various agents to assist people in the process. Even though they will guide you on what to provide, it is beneficial to be aware ahead of time.
Filling out the forms – they can easily be downloaded from the government website, or the agent will provide them. If you aren’t sure how to fill out a form, let the agent guide you rather than making a costly mistake. The forms are easy and straightforward, so filling them out does not take long. Take your time and involve the other managers when possible.
Attaching documents – the company registration forms usually provide guidance on all the attachments that are needed. The first attachments to include are the identification documents for all the shareholders. Foreign investors must use copies of their passports while citizens use their national identification card. Copies of drafted memoranda and agreements are also needed at this point. The last important document is the introduction letter, which mentions the nature of the business. The agent will go through the application and mention anything more that is needed.
Things to Know About Company Formation in Cyprus
The minimum paid capital in Cyprus is a euro cent. This makes it easy to form a company in the country both for locals and foreigners. One reason why this is an excellent location for your business is that even companies with 100 percent foreign ownership follow the same procedure for registration
Upon successful registration and formation, all Cypriot companies have an obligation to do bookkeeping and conduct regular audits. The Cypriot tax authorities have the right to access these books whenever they need to without prior notification.
Tax returns are completed annually while the VAT is filed every three months. Compliance with these filing deadlines is important if the company wants to avoid problems with the tax office.
Finally
Registering a company in Cyprus is easy and straightforward as highlighted above. There is no need to skip it or try to operate without the registration certificate. The fine for doing this is hefty. It may even cost foreigners their residency. Why not hire a professional company registration consultant or agent to take you through the process?
