Cyprus is a country that is located in the Mediterranean Sea. It is one of the major business destinations in the Middle East. Due to this reason, many companies have been investing in the island. With cheap labor and many resources, the country is very ripe for investment. There are requirements that investors must meet before their companies are incorporated here. The requirements make sure that the company is carrying out legitimate business and that all companies are regulated. The type of law that applies in Cyprus is civil law and it borrows heavily from the British laws.
In Cyprus, company incorporation starts with the business name. You send a suggestion of business names to the registrar and after they are approved, you meet the other standards that are set for companies. These include having a physical address in form of a building or office. The physical address could be a plant if it is a manufacturing company. The premises of the company must be inspected to ensure that they are fit for operation. Together with the inspection of the premises, the company management must get licenses for operation in their respective councils.
In Cyprus, a company must have a minimum of one director, one shareholder, and one secretary. This makes sure that it fits the definition of a company as required by the civic law of the land. The work of the director is to make decisions and he acts as the point of reference in any case that concerns the company. The government demands the company gets a secretary so that at any one time when it is operation time for the company, the physical address of the company has someone who the government can refer.
A company in Cyprus is expected to file its tax returns with the income tax department and before a company is incorporated, it has to submit a tax certificate of registration and an affidavit that acts as proof that the management of the company have agreed to pay tax on income at the rate of 10% for corporate. The affidavit is issued by a court of law and it acts as an oath of compliance. Many company titles require consent before they are registered and these are mainly related to the professional practitioners like doctors, teachers, and pilots. Cyprus restricts operation of foreign companies as banks, financial institutions, and insurance institutions.
There are no government charges for company incorporation. The process of incorporation takes a week at most. The law of Cyprus requires the company proprietors to submit the financial statements at the end of the financial season. This is sworn in the affidavit that is presented at the registrar of companies’ office as a way of declaration that the management has agreed to submit the information. This information is important to the government so that it can calculate its GDP and confirm that the tax returns are genuine. On completion of the incorporation process, a certificate is offered to the company as a sign of compliance.
Cyprus Company Formation
|Cyprus Bank Accounts| Offshore Company Formation
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