Easily START a company in Cyprus
Quick and easy incorporation of your Cyprus Company in just a few days. Our specialized teams will assist you through the whole process in a timely and cost-effective manner.
Incorporating a Company from the comfort of your home or office can be easy, but at the same time stressful as there is always the fear of the unknown.
Our specialized teams will take you through the whole process, answering all of your questions in a timely manner while ensuring a fast incorporation. We can then assist you with anything you may need ensuring the Company is compliant in Cyprus at all times.
Here is where our role fits in:
Assistance throughOUT the entire process
We can assist you throughout the process of registration of the company. Main steps are as follows:
- Perform a name consultation and apply to have the name approved with the Registrar of Companies
- Drafting of the Memorandum and Articles of Association, and adjust to your specific needs with different classes of shares, quorum of Directors etc
- Appointing of the company’s officers (Directors/Corporate Secretary) and arranging of the registered office address
- Preparation and submission of the required forms to Registrar of Companies and liaise with the Registrar up until the incorporation is successfully completed
- Obtaining of corporate certificates of the newly incorporated Company
Please note that there is no need for you to come to Cyprus. Also no originals are required, as the whole process of incorporation can be completed with scanned copies. Our professionals will take care of the whole process ensuring the Company is incorporated in no-time and fuss free. Contact us for more information.
Why do companies incorporate in Cyprus?
A Cyprus company is a flexible and powerful vehicle for multiple reasons. Cyprus became an important business hub for enterpreneurs and investors for reasons described but not limited to the below:
- An attractive tax regine where the effective tax rate can go as low as 2,5% (normally 12,5%)
- No withholding taxes on dividend, interest and royalty payments paid abroad except for payments made to EU Blacklisted jurisdictions
- No capital gains tax on sell of titles
- No taxation on dividend income (conditions apply)
- Stable and highly developed legal and tax environment
- Significant tax benefits for individuals (50% exemption, tax-free dividends etc)
For more information on why to incorporate in Cyprus, please click here.
CYPRUS INCORPORATIONS - STEP BY STEP GUIDELINE
Please click below on the step by step guideline for the incorporation of a Cyprus Company and how we will assist you throughout:
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.
- 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.
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.
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 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 incorporation 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 side, 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 the formation of a Cyprus Company.
Cyprus Company Incorporations – Frequently Asked Questions (FAQ)
Either the EU Membership, the various Tax Benefits for Companies and Expats or the wonderful climate, Cyprus offers a lot of reasons to establish a Company at. Please refer here for more information.
No, you can sign the Memorandum, Articles of Association and any other document which may be required in wet ink and send us the scanned copies for us to be able to proceed with the incorporation.
No, it is not required for a Cyprus Company to have a bank account, but that is recommended so that the Company can pay its expenses. A Cyprus bank account also strengthens tax residency, but Cyprus Companies can also have bank accounts with banks abroad.
The name of your entity should not be too general or already in used, otherwise the Registrar may not approved. We can provide a free consultation on the name, as this is the first step on the incorporation.
Every Cyprus Company must have its own memorandum and articles of association.
The memorandum contains the basic information of the company such as the company name, registered office, the objects of the company and so on. Care must be taken that the first few object clauses are tailored to the specific circumstances and main business objects and activities of the company (we can assist with such).
The articles specify rules about the governance of the internal management of the company and regulations about the rights of the members (appointment and powers of directors, transfer of shares, etc).
Every Cyprus Company needs to have a registered office in the Republic upon incorporation.
The registered office is the place where writs, summonses, notices, orders and other official documents can be served upon the company. It is at the registered office where the company’s register of members is usually kept. This can be the premises of the entity, or such an address can be provided by us as outlined here.
Every Cyprus Company needs to have a corporate secretary, which is responsible for the filings to the Registrar of Companies amongst others. Such services can be provided by us, as outlined here.
The Cyprus Company shall have at least 1 Director and 1 shareholder upon incorporation. Quorum for Directors meetings will be set at the Memorandum and Articles of the Cyprus Company.
No, the share capital initially will be shown as receivable from shareholder and can be settled when the Company has a bank account or when the shareholder pays any expenses on behalf of the entity.
Usually we incorporate entities with authorized share capital of 5,000 ordinary shares of €1 each, and issue 1,000 ordinary shares of €1 each.
Yes, after incorporation shares out of the authorized share capital of the Company can be issued at a premium.
No, usually we incorporate Cyprus Companies with their share capital in €, however, the capital of the Cyprus Co can also be issued in other currencies such as USD$, GBP£ etc.
As a minimum upon incorporation the entity shall register with the Tax Authorities and obtain a Tax Identification Code (TIC), 60 days after incorporation. The Company will also need to submit its UBO information maximum 30 days after incorporation.
There are other registrations that the entity may need such as VAT (if it will conduct vatable activities, or registration with the Social Insurance Authorities if the Company will have employees on its payroll).
The corporate tax rate is 12.5%. You can see more information on the tax benefits in Cyprus in our Why Cyprus article.
As from 31/12/2022, every Cyprus Company upon incorporation will be considered a Cyprus Tax Resident, unless the said Company is tax resident in another jurisdiction.
In accordance with current the Income Tax Law, a company is considered to be a tax resident of Cyprus if its management and control is exercised in Cyprus.
The existing corporate tax residency test will continue to apply, so that a company that has its management and control in Cyprus will continue to be considered as a tax resident of Cyprus. It is always recommended to have strong substance in Cyprus in cases of a tax audit from foreign tax authorities (i.e. of the country of tax residency of the CyCos beneficiaries). For more information on substance in Cyprus please click here.
The above are provided for indicative purposes only and do not constitute any form of advise. Please contact us for more information and specialized advise on Cyprus Company Formation matters.
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We help businesses and entrepreneurs set up and manage companies in Cyprus. We provide the service we would like to experience ourselves. Contact us today to see how we can assist you.