How to open a company in Cyprus in 2019
The Republic of Cyprus is an island nation. Since 2004, is a member of the European Union. Jurisdiction is considered attractive for entrepreneurs in terms of doing business - it is relatively easy to register a company in the country.
Advantages and disadvantages of the establishment of the company
The main activity that is most successful for doing business in Cyprus is trade. The probability of prospective development of investment, holding, shipowning, consulting organizations is high. For quality advice and advice on choosing a direction for doing business, contact our IT - OFFSHORE specialists.
Advantages of opening a company in Cyprus:
• It is relatively easy to register an organization;
• The tax system is transparent;
• Small tax payments in comparison with other jurisdictions;
• The possibility of exemption from income taxes if the company does not operate in Cyprus;
• Ability to work with companies of the European Union;
• Jurisdiction is considered respectable;
• Ability to conduct international trade.
Despite the advantages, there are some disadvantages of doing business in this country. Often there are difficulties when opening an account in a financial institution. You may need to collect a large package of documents. In addition, information about the founders and shareholders of the company are in the public domain, which may be a disadvantage for some businessmen.
The main types of companies in Cyprus
Businessmen who wish to register a company in a jurisdiction must operate in accordance with existing Laws related to companies. The most common are the three forms for the establishment of the company - LLC, JSC and partnership.
Features of a limited liability company:
• Shareholder liability is limited to the size of their contribution;
• The management of the organization is the responsibility of the director or the Board;
• A secretary must be appointed;
• All companies are registered with the Registrar in the jurisdiction.
A limited liability company has no conditions with respect to the largest number of shareholders, shares can be transferred without restrictions. The peculiarity of such a company is that the term of validity of the joint-stock company is prescribed in the Charter, but can be unlimited. There are no requirements for minimum capital, as well as the number of shareholders.
• Full partnership is based on the agreement of 2-20 partners, united under one name and having common economic goals;
• If a banking business is organized on the basis of a partnership, a maximum of 10 partners are allowed;
• Registration time in the Registry is limited;
• A foreign investor can become part of a partnership;
• The form is optimal for running a small business.
When submitting the relevant documents, a foreign company may create branches in the jurisdiction. A mandatory requirement for affiliates is the submission of reports on financial activities translated into the official language of the Republic.
Depending on the chosen organizational - legal form for registration, the package of papers for creating a company may vary. IT specialists - OFFSHORE will provide legal assistance and advise on the creation of a business.