WHAT ARE THE MAIN USES OF A CYPRUS COMPANIES?
Cyprus companies are most commonly used as holding companies as they are not taxed on dividends received. They may also be used for trading of goods, re-invoicing, real estate holding and other.
HOW LONG DOES IT TAKE TO CHECK A COMPANY NAME?
To check a Company name as urgent takes approximately 5-10 working days and non-urgent checking can take 3-4 weeks. However we do keep a list of pre-approved names that are valid for a period of 6 months from the date of the approval.
HOW LONG DOES IT TAKE TO INCOPROATE/AQUIRE A CYPRUS COMPANY?
From the date we submit the relevant documentation to the Cyprus registry, it should take approximately 7-10 working days.
WHAT ARE SHELF COMPANIES?
Shelf Companies are ready-made never used companies, with pre-appointed directors and shareholders that have been created to meet a client's immediate needs, and avoid the waiting time for formation of a new company.
WHAT IS THE STANDARD AUTHORISED CAPITAL FOR A CYPRUS COMPANY?
There is no minimum or maximum authorised capital required but EUR 1,000 is the standard amount.If you require a Company to be registered with a higher share capital than the standard amount, then you can contact our office for further information.
WHAT IS THE MINIMUM NUMBER OF DIRECTORS AND SHAREHOLDERS, AND WHO CAN BE APPOINTED?
Under Cyprus Law, every company limited by shares must have a minimum of one director, one secretary and one shareholder. From a tax planning point of view, it is often required that the company is shown to be managed and controlled in Cyprus and, accordingly, it is recommended that the majority of the directors appointed are Cyprus residents.
WHAT IS A REGISTERED AGENT?
A Registered Agent is required by Law to ensure that the company has an assigned legal representative at a known address to receive all service of process (legal notices) on its behalf. The Registered Agent forwards these documents to the address of record of the company.
WHAT IS A NOMINEE DIRECTOR?
The nominee director service is used to ensure the highest degree of privacy and confidentiality, as the name of the director will appear in the corporate documents, in any business contract and eventually in the jurisdiction's business register.
WHAT IS A NOMINEE SHAREHOLDER?
The nominee shareholder is appointed in order to shield the real owner of the company from being publicly associated with the ownership of that company.
Upon appointment of a nominee shareholder, a declaration of trust will be signed between the client and the nominee shareholder.
We strive to work with the highest level of integrity and confidentiality.
WHAT IS THE VIRTUAL OFFICE?
The Virtual Office allows your company to have an address in Cyprus and to receive mail there, which, in some cases, can lend more credibility to your company.
ARE THERE ANY RESTRICTIONS ON THE ACTIVITIES OF THE COMPANY?
Certain activities cannot be undertaken unless a special license has been obtained. These activities include banking, insurance and financial services.
CAN YOU ASSIST WITH THE OPENING OF BANK ACCOUNTS?
Yes, we work with a number of highly regarded banks. Nowadays all banks require an introduction from someone they already have a relationship with, and we can use our relationship to introduce you to a suitable bank. In most cases the account can be opened without a personal visit from the client’s side.
WHAT IS A POWER OF ATTORNEY?
This is a legal document recognized everywhere in the world as giving the person named in the document (attorney) the legal rights as specified in the document. Typically, this includes the right to open and operate a bank account in the company’s name and sign contracts on its behalf.
WHAT IS THE NOTARISATION AND APOSTILLE?
A notarization means that a notary will check all the documents we issue for your company and that he will confirm their authenticity.
An apostille is an internationally recognized certification and legalization of the corporate documents by the government of the jurisdiction where your company has been incorporated.
ARE CORPORATE SEALS MANDATORY IN CYPRUS?
It has been a long established rule that a Cyprus company must have a corporate seal which must be kept at the registered office of the company under the custody of the company secretary as shall be directed by the Board of Directors. Even though there is no specific provision in the Cyprus Company Law, Cap 113, providing for a compulsory obligation for each Cyprus company to have a common seal, nor is there any such requirement from the Cyprus Company Registrar, such an obligation is implied from other provisions in Cap 113.
Although there is no mandatory requirement, it is however permitted and commonly used, therefore we include this in our initial incorporation kit.
WHERE WILL THE CORPORATE DOCUMENTS BE DELIVERED?
We can deliver the documents to anywhere in the world via a recognized courier company.
WHO WILL KNOW I AM THE BENEFICIAL OWNER?
KYC (Know Your Client) policy and the bank will always require this information.
In general, we consider this to be highly sensitive information covered by client privilege and as such use all available legal means to ensure your privacy.
WHAT IS DUE DILIGENCE?
Reasonable steps taken by a person to avoid committing a tort or offence.
Customer due diligence means taking steps to identify your customers and checking who they are (their identities) by obtaining certain documents such as certified passport, bank reference letter and current utility bill, indicating the customers address.
You can find full information on the due diligence requirements by clicking there.
WHERE IS MY PERSONAL INFORMATION HELD?
To maximise security, all personal information is held in Cyprus where the confidentiality Laws are strict. No outside agency can breach these Laws, unless they are able to prove that a Cyprus law has been broken. For example, non-payment of taxes in another jurisdiction does not constitute a breach of law in Cyprus.
WHAT ARE STATUTORY DOCUMENTS?
The Statutory documents are the documents which establish the company and contain basic information such as the name, structure, and purpose of the company. Articles of Association are rules the company creates for its shareholders, officers, and directors. Articles are adopted as one of the first organizational steps in setting up a company.
CAN FOREIGN COMPANIES RE-DOMICILE TO CYPRUS?
According to the Cyprus Law a company may re-domicile to Cyprus provided that it is accepted by the laws of the company’s country of incorporation.
WHAT IS DOUBLE TAXATION TREATY(DTT)?
Double taxation is the systematic imposition of two or more taxes on the same income (in the case of income tax), asset (in the case of capital taxes), or financial transactions (in the case of sales taxes)
For example, if a business incorporated in a country A makes a taxable gain in a foreign country B, it may be taxed twice by both A and B countries.
To avoid double taxation, Double Taxation Treaties (DTT) are applied. In most cases, if two countries A and B have the DTT, a business pays tax only to one country.
Cyprus has DTT’s with approximately 60 countries and many more are currently being negotiated. The list of DTT’s includes CIS states, most EU Countries, India, China, US, Canada and various Arab, African and Asian countries.
WHEN IS THE ANNUAL RETURN COMPULSORY FOR A COMPANY?
The annual return is always compulsory. If the client does not file, then there is an accumulative penalty.
WHEN IS THE ANNUAL RETURN DUE?
The first annual return is due within 18 months of incorporation and every 12 months after that.
WHAT IS THE ANNUAL GOVERNMENT LICENSE FEE?
An annual levy of €350 is payable to the Registrar of Companies annually.
IS THERE PENALTY FOR LATER PAYMENT OF GOVERNMENT LICENSING FEES?
Yes, if the duty is not paid on time then penalties will be imposed.
For further information you can contact our staff in order to clarify the timeline of penalties.
MUST AUDITED ACCOUNTS BE PREPARED?
It is a legal requirement for a Cyprus Company to keep accounting books and records.
WHAT IF I WISH TO CLOSE MY COMPANY?
If you no longer require the Company, we can proceed with the official liquidation of your company as per your signed instructions.
Article 201 of the Companies Act (CAP.113) stipulates that an organization may be liquidated/wound up in the following ways:
(a) by the Court (b) voluntary (c) under the supervision of the Court.
Generally, two main methods of closing a Cyprus Company are applied: Members Voluntary Liquidation and Strike-off Method.
WHOM DO I CONTACT IF I HAVE OTHER QUESTIONS THAT HAVE NOT BEEN ANSWERED?
Please use the contact details below to get in touch with us. We will direct any inquiries to the correct firstname.lastname@example.org
The information available on this website is intended as a guide only and every reasonable effort shall be made to ensure the accuracy of the information.