Want to register a company in Cyprus?
If you are looking to register a company in Cyprus and by association the EU, Cyprus offers the best tax-rates in Europe. With world class financial services and strategic proximity to the Middle East and Europe, it is no surprise that thousands of big companies have set up offices in Cyprus. The best way to register a company in Cyprus is to find a reputable company that deals with all the paperwork and can offer advice on the best way to proceed. There are certain steps that need to be decided before you can proceed.
Getting Approval of the name of your company is the first step. You would have to submit an application to the Cyprus Registrar of Companies for approval. The name should be specific to your type of business and end with Ltd or Limited.
Once the name has been approved you would need to decide on the share capital and whether the shares will be registered, preference or redeemable shares with voting rights. You would need to have at least one shareholder who does not necessarily have to be Cypriot. You can also assign a corporate shareholder and not an individual. The registered office of the company must however be in Cyprus. If you do not have a physical address, the company that you use to register the company can provide you with an office address were all your official documentation will be kept. All Cyprus companies must appoint a secretary, this can also be taken care of by the company you use to assist you with registration.
When it comes to directors of the newly established company, it is advisable to have a Cypriot presence so that the company is considered to be directed by a tax resident of Cyprus. The company must have at least one director and although it is not a requirement to have local directors, for tax reasons most companies do employ Cypriot residents.
Before you start the process of registering a company in Cyprus, it is of the utmost importance that you find a reputable company that specializes in these corporate services. They should be able to offer you an all-inclusive service that will meet your business needs. Amongst other points they should offer the following:
- Extensive knowledge on company formation in Cyprus
- Licensing of Cyprus companies (CIFs, AIFS)
- Vat registration
- Opening of bank accounts
- Administrative and other services that you will need for your daily operations
- Bookkeeping and Auditing services
- Staff that speaks your language
- Integrity and confidentiality
- Advice on which corporate structure is best for you
- Competitive fees
- Tax expertise
- Corporate planning and administration
- Registration of company office
- Renting of office space
- Secretarial services
- Work permit applications
How Much Does it Cost to Register a Cyprus Company?
When setting up a company in Cyprus, you can expect to pay the following fees and costs. The registration fee which is a one off payment charged to create the company. This can cost anything from €1200 to €4000 and includes the registration fee and the set up fees.
The annual fees include charges for the services of the secretary of the company and the registered office if the company you use is providing these services. Accounting and auditing fees also need to be taken into consideration as you would have to submit yearly financial reports. The cost of accounting services will depend on who you choose, big firms like KPMG charge a lot more than a small accounting office. All Cyprus companies need to register with the Inland Revenue Office and have a tax number. Audited accounts sent in every year will determine whether you are liable to pay taxes. Some companies also need to register for Value Added Tax, detailed income and expense records have to be submitted every three months, and vat payable must be paid.
A Cyprus based company has to submit annual reports to the Registrar of Companies with any changes that have taken place during the current year. If there is a change in directors or shareholders, or even change of address, the registrar must be notified. This documentation is normally filled by your accountant.
There is also a Government levy that has to be paid by the 30th June every year. This is currently €350 for single companies and in the case of a group of companies the amount payable is capped at €20,000 per year. These fees must be paid on time to avoid penalties that will apply for late submissions.
Cyprus offers the ideal location for international companies. The expertise and competence of lawyers and companies that specifically deal with the incorporation of companies is of superior quality and it is relatively simple to open a company on the island. Apart from the tax benefits, Cyprus also offers an ideal location for relocation, if you are considering living on the island. There is also a program that offers citizenship in Cyprus through investments which is worth looking into.