Cyprus company formation is a simple and quick process that usually takes a few days to finish. The country is steadily progressing and is well-known for its high-income economy, which provides foreign investors with a business-friendly environment and a low corporate tax rate. Cyprus offers companies access to the EU single market as a member of the EU, enabling the free flow of capital, goods, and services.
6 Steps to Setting up a Company in Cyprus
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Employ a lawyer who is a member of the Cyprus Bar Association
Employ a lawyer who is a member of the Cyprus Bar Association.
The HE1 Form, Memorandum, and Articles of Association needed for company registration can only be prepared by attorneys who are members of the Cyprus Bar Association, per Cypriot law. Therefore, finding and hiring a licensed legal practitioner is the first step in the registration process.
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Apply for a company name at the Registrar of Companies (RCOR)
Businesses must apply to the Registrar of Companies and Official Receiver to approve their company name. The applicants may handle this directly or indirectly through a service provider or attorney.
However, it should be mentioned that legal advisors in Cyprus usually keep several “shelf names,” or company names that have already been approved by the Registrar, as a matter of good practice. These are provided to customers who don’t care about the company’s name as long as they get what they need quickly. This implies that the applicant will have a company name approved soon.
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Submitting all relevant documents to the RCOR
Documents that the applicant must provide:
- Unless the standard Memorandum and Articles of Association are to be used, a summary of the company’s primary goals.
- The nominal share capital and allocation (public companies have a minimum share capital of €25,629).
- Names, addresses, and passport information for the company’s proposed secretary and directors.
- The company’s proposed registered address.
- Certified copies of the ultimate beneficial owners of the business’s passports.
- Bank or other references regarding the ultimate beneficial owners’ good standing.
- The line of succession traces the ownership of the Cyprus Company to the ultimate beneficial owners.
- Any information complies with the “KYC” requirements and aligns with the CBA guidelines and the Anti-Money Laundering Law.
Forms required by the Registrar
- Declaration Form (known as HE1 form)
- Declaration Form concerning the registered office address (known as HE2 form)
- Form with information about the Company Secretary and Directors (also called the HE3 form)
- The original memorandum and articles of association both need to be signed by the attorney who drafted them and the subscribers to the memorandum, whose signatures must be attested by a minimum of one witness.
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Get the Incorporation Certificate
You will receive notice of your company’s successful incorporation, the Certificate of Incorporation, and a certified copy of the Memorandum and Articles of Association after submitting the application form and supporting documents to the Registrar and paying the required fees.
● Register your company with the Tax Department and Social Insurance Services
All companies must register with the Tax Department to receive a VAT registration number, tax identification number, and Social Insurance Services number.
Employers must contribute to the Funds (Social Insurance, Paid Annual Holidays, Redundancy, HRD, and Social Cohesion) for each employee whose salary does not fall below €200 per week or €700 per month. Within one month of the conclusion of each contribution month, employers pay their monthly arrears, which include the employees’ share.
Employers can apply for their registration online via the Point of Single Contact (PSC) Cyprus portal (www.businessincyprus.gov.cy), or they can mail or deliver the application in person to a Citizens Service Center or District Social Insurance Office.
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Open a corporate bank account in Cyprus
You must open a corporate bank account in Cyprus after registering. Opening a corporate bank account normally requires four weeks. Directors and shareholders are usually not required. The meeting may be conducted in Greek or Turkish. You will need to submit the required documents from the bank.
