How to open a company in Cyprus now
If you are interested in the EU market, low taxes, gambling or financial business, take a closer look at Cyprus. The country stands out for its low taxes, excellent climate, and low prices compared to other European countries. Company registration in Cyprus is fast, bureaucratic procedures are maximally simplified.
Forms of business registration
The IBC (International Business Company) is ideal for offshore. The company can operate only outside of Cyprus, the minimum authorized capital - €1. While other forms of incorporation require a residence permit and the personal presence of the owner in Cyprus for a certain number of days, there is no such requirement. Shares of IBC can be owned by up to 50 people. If you want anonymity, nominee directors are allowed, but the Central Bank must be aware of who really owns the company.
Other forms of business registration
In Cyprus, you can open a company with limited liability (LLC). It can be of closed (private) or open (public) type. In the first case the registered capital is not required, participants are responsible within the limits of their shares. In the second case for opening a company share capital of €15K is required.
A popular form of company registration is a partnership. Among the advantages - a clear division of duties and responsibilities, low tax costs. It may not be audited annually, if the turnover is not higher than €70K. Also, the partnership is not obliged to disclose the founding documents.
There are three types of partnerships:
- General partnership - equal participation in the company and equal responsibility of each partner. The liability of former participants does not cease when they retire;
- Limited Partnership - the company is managed by one general director, who has unlimited liability for all obligations. The other (limited) partners do not participate in the management of the company, liability is determined by the contribution. If the limited partner participates in the management, his level of responsibility increases to the general partner;
- Limited Liability Limited Partnership is a new form adopted in 2015. The company is managed by one or more managers, who may be jointly or severally liable for debts and obligations;
- Another popular form of registration is a trust. Its founder transfers assets to the trustee, who must manage them for the benefit of the beneficiary (a third party) in accordance with the trust deed.
How to open a company in Cyprus
To open a company in Cyprus, one must prepare documents (Articles of Association, copies of passports), open a corporate account, rent a physical office. The staff must include at least 1 director and 1 secretary.
The registration of the company in Cyprus 2022 is as follows:
- Determine the form of company registration (partnership, LLC, branch, trust, etc.) - this determines the requirements for registration, share capital, owners, licenses, other points;
- Reserve the name in the Cyprus Companies Registry;
- Prepare supporting documents - details of the directors, their domicile, proof of real registered office, reference letter from the bank, CV. You will also need a charter which will include basic information about the company, its directors, commercial activities. The document should be filed in Greek or Turkish;
- Submit your business opening documents to the Cyprus Registrar of Companies; When approved, a certificate of incorporation, memorandum of association, articles of association, other corporate papers will be sent to the registered office;
- Get a number from the tax office and register with the social security fund;
- Open a corporate bank account.
It doesn't take longer than 2 days to register a business if all documents are submitted correctly. It can take up to 4 weeks to open a bank account.
Opening a company in Cyprus will cost €2000-€3000. This includes costs for opening a bank account and internet access. Separate account must be taken of the share capital (if necessary). Administrative costs can be up to €6K, including expenses for accounting and auditing, including the preparation of financial statements.
It is important to remember that social insurance in Cyprus is mandatory. Employers and staff pay a contribution of 6.3% of wages, while self-employed persons pay 11.5%.
It is also important not to forget about taxes:
- VAT (5 to 19%) - mandatory for companies that sell goods and services. Some types of activities are exempt from VAT (renting out real estate, medical, financial and management services, some types of gambling business);
- Corporate tax is 12,5%, one of the lowest in Europe. If income is derived from a permanent establishment abroad, you may be exempt from it under certain conditions;
- If the annual income of the company does not exceed €19.5K, no tax must be paid.
How to set up a company in Cyprus quickly
To open a business in Cyprus 2022, contact IT-OFFSHORE experts.