Incorporating a Company in a foreign jurisdiction can be a daunting task. A lot of steps, logistics, intermediaries, documents as well as liaising with the authorities of a foreign jurisdiction can be tricky, making the process challenging and time/resources consuming.
Below we analyze the steps required pre and after incorporation to ensure that you have a timely and nerves-free formation of your Cyprus Company:
Step 1 – Choose the name, shareholders and officers of the company
Choose the important details to incorporate your entity:
- Company Name: First, we will need to apply for your desired name with the Registrar of Companies in Cyprus and this usually takes 2-5 business days to be approved. The name should not be generic or already been registered with the Registrar of Companies. In addition, if your desired name represents an international brand, an authorization may need to be obtained. You can contact us for a free name consultation any time.
- Share Capital / Memorandum: Our experts will then discuss with you the share capital and shareholding of the Company to be included in the Memorandum and Articles of Association. For most of our clients we set the authorized share capital at EUR€5,000 and the issued at EUR€1,000, so if you require to issue more shares at a later stage to be able to do that without having to increase the authorized share capital. Please note that the share capital can be denominated in any currency.
After the above are decided we will then proceed with drafting the Memorandum & Articles of Association of the Company. By default we use our standard template, but we can process any changes you may need, i.e. for classes of shares, quorum of Directors etc.
- Directors, Corporate Secretary, Registered Office: Every Cyprus Company will need to have appointed a Director, Corporate Secretary and a Registered Office Address. Here at Asterisk we provide Executive Level Directors who have limited appointments. We can also provide Corporate Secretary & Registered Office address services to complete this step.
Step 2 – Application forms completion and submission
Memorandum & Forms to be submitted to the Registrar of Companies:
- After step 1 is completed we then send to you the Memorandum & Articles of Association as well as any other forms you may need to sign (in case you would like someone from your side to be appointed as Director). Please note that you do not need to come to Cyprus for the incorporation, nor you need to send originals, scanned copy signatures would suffice. We will arrange for everything.
- After all documentation is in place we proceed with submission to the Registrar of Companies and we usually have a fully incorporated entity within 4-5 business days from the moment of submission.
Step 3 – First board meeting & registrations
Relevant registrations and the first meeting of the Board of Directors take place:
- Corporate Certificates: After the Company is incorporated we will send to you all Corporate Certificates in scanned copy and original format if required. Otherwise such are kept at the registered office of the Company. We will also provide you with the share certificates of the entity proving your shareholding and we will also order the Company’s stamps.
- Tax Registrations: The newly incorporated Cyprus Company will need to also register with the Cyprus Tax Authorities and obtain a Tax Identification Code, 60 days after incorporation, otherwise penalties apply. We can assist with this process which also includes registration with Taxisnet for the online submission of Tax Forms.
- Bank Account: Under Cyprus Law the Company does not need to have a bank account to be able to be incorporated/operate. However, if you wish to open a bank account for your newly Cyprus Incorporated Company we can then assist with the bank account opening process by completing forms based on your instructions and liaising with any bank in Cyprus or abroad.
- First Board Meeting: After the Cyprus Company is incorporated the first meeting of the Board of Directors is convened. Amongst others the following preliminary matters are discussed/approved:
· Where the registered office of the Company is situated;
· Appointment of the secretary of the Company;
· Instruct the secretary to complete and file all the necessary notifications and returns with the Registrar within the time prescribed by law and to obtain/draft all the necessary statutory books and registers.
· Issue and allot the number of shares to be held by the subscribers.
Overall formation of a Cyprus Company can look like a taunting task at the beginning, however, with the help of our professionals we can complete the process for you in no-time, with minimal involvement/worry from your site, as well as ensure that everything is in place for you to commence your business.
Feel free to contact our team to secure detailed information on incorporating your business entities in Cyprus.