Our Corporate administration practice of Demetris Ch. Demetriades LLC focuses in the incorporation of Cyprus Companies.
INCORPORATING A COMPANY IN CYPRUS
Cyprus is a favoured jurisdiction for many international companies and wealthy individuals who are looking to optimise their corporate structure in a tax efficient way while conducting international business.
The benefits of setting up a company in Cyprus:
- The corporate tax rate in Cyprus is at 12,5 % which is one of the lowest in the European Union (EU). Once set up correctly your international tax planning could have substantial tax benefits.
- Cyprus companies can benefit from a wide range of double tax treaties entered into with over 60 countries.
- Dividends and interest payments by Cyprus tax residents to non-Cyprus tax residents are exempt from withholding tax. The only withholding tax levied is on royalties earned on the use of a right or asset within Cyprus. (10% withholding of tax and a 5% on cinematograph films).
- A Cyprus company does not require a resident shareholder as a result a 100% foreign ownership is allowed, with no visit requirements. However, there are situations where local ownership is required such as for registration of a vessel under the Cyprus flag or aircraft (subject to exemptions).
- The legal system in Cyprus is a common law system which is ideal for international business.
For an in depth read in companies law please follow the link to CAP 113
By establishing Cyprus Company, the shareholders can enjoy reduced costs and taxes, utilise the potential investment incentives, maintain increased protection on assets and work in a professional and less bureaucratic jurisdictions.
To read our memos on:
Company information and pre-incorporation information
We will require at least 2 alternative names which you wish the company to be named that must be accepted by the Registrar of Companies. In the event that a company name is similar with an existing company or brand name, then the Registrar of Companies will not accept that name without the prior consent of that company or owner of the brand name.
The company must have a registered office address within the Republic of Cyprus. At this location, the company shall keep an updated register showing the directors, secretaries and shareholders.
The company must have a minimum of one director which can also be a legal entity. Although there are no requirements that the directors are local, we strongly advise that for various reasons.
The company must have at least one shareholder the records of which will be held in the Registrar of Companies as public records. In the event that a shareholder does not wish to be shown in the register of members, nominee shareholders may be appointed that will act as trustees on behalf of the ultimate beneficial own.
We will require the intended activities of the company to make confirm the legality of the said activities within the requested jurisdiction as well as due diligence purposes.
The Secretary is an appointed officer of the company which can take the form of a legal entity. The Secretary is responsible to maintain the minutes of the company and keep updated the company’s registry in the Registrar of Companies.
Our companies are usually incorporated with a standard authorized and issued share capital of €1.200 of 1.200 shares of €1,00 each and is considered as fully paid up. It the event that the company will have multiple shareholders and a higher level of safeguarding is needed we offer classification of shares according to your needs.
Once the name has been approved and the relevant incorporation documents have been submitted to the Registrar of Companies, the company under the fast track method will typically be incorporated within 5-7 working days.
Local and independent auditors need to be appointed that shall prepare the company’s books and prepare audited accounts.
The company certificates are issued one day after the incorporation date by the Registrar of Companies.
Upon completion, you will receive the following set:
- Certificate of incorporation
- Certificate of registered office address
- Certificate of Directors and Secretary
- Certificate of Shareholders
- Certified Greek Memorandum and Articles of Association
Upon request, we shall provide the following:
- Company Stamp
- Share Certificates
- Trust Declarations in the Event of Nominees
- Apostilled affidavit of Greek and English Memorandum and Articles of Association
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