What is Company Registration in Cyprus?
Basically the company incorporation procedure in Cyprus is same for all business entities having a simple and straightforward structure.
Cyprus is considered as European Business Hub as it provides major benefits to the foreign investors such as low tax haven, a stable economy and a welcoming territory for any type of investments.
In Cyprus, company incorporation procedure consists drafting of the articles of association and other required documents such as signatures, passport copies, forms etc.
It may also be required from the new owners to go to a local public notary and to find an office for their company and set up a bank account and Cypriot accountant may also be required.
TYPES OF COMPANIES
- In Cyprus, company can either be public or private; it depends upon the types of shares and the size of the company.
For Private Limited Companies there is no requirement of minimum initial capital. Whereas in case of public limited company, there is a requirement of at least 15,000 EUR.
Both types of companies can be established by one or more shareholders.
- In Cyprus, Branch, Subsidiary or Representative Office can either be formed separately from the parent company or as an extension of it. Requirements of each structure have to be met by the founders.
PRIVATE COMPANY LIMITED BY SHARES
- In Cyprus, private company limited by shares is the common type of company founded by one or more partners but up to 50.
- The basic requirement is that company must have a registered office in Cyprus and also a local company secretary.
- Under this, there is no requirement of minimum capital. Shareholders subscribe shares which can be monetary or non-monetary given nominal value and cannot be transferred.
- Members of this type of company shall be liable for the company's debts and obligations only to the extent of the nominal value of their shares.
PUBLIC COMPANY LIMITED BY SHARES
- Functions of a public company limited by shares are as same as a private company limited by shares except the fact that shares are freely transferable.
- Under this, there is no restriction regarding the maximum number of partners.
- There is a requirement of minimum share capital of EUR 15,000.
- In Cyprus, foreign company is able to establish a Branch, Subsidiary or Representative Office. All of these can be established as separate entities from the parent company (Cypriot companies having the foreign company as shareholder) or extensions of the parent company.
- To enter into a Cypriot market, subsidiaries are a popular option.
PROCEDURE OF INCORPORATION
- In Cyprus, company registration procedure can be performed by an authorized company representative appointed by power of attorney.
- There is a requirement for Cypriot private companies limited by shares to have a registered office in Cyprus and it is managed by a management board.
- However, it may be necessary to come in person when the bank account is opened in order to sign papers and provide the registration certificate with the identification documents of the managers.
- VAT registration is mandatory but only for those companies which perform activities that are subject to the Value Added Tax, such as trading.
- After this, new company has to hire employees.
- By collaborating with job websites and recruitment agencies,recruitment process is not difficult, especially when the workforce is so well-trained in Cyprus.
- In Cyprus, average monthly salary is rather high and an employee earns approximately 1,800 EUR.