Cyprus is an upcoming country in business and it is an ideal country for investing. Like any other country, most of the citizens live around the towns and cities. Out of a population of 700,000, 200,000 live in the urban areas. The growth rate is not high in the country though the weather is favorable. Cyprus experiences an average of 300 sunny days per annum. Being an island at the heart of the Mediterranean, it receives a number of business tourists. The Cyprus government has come up with regulations that are requisite for any company that plans to carryout business in the country. These regulations ensure that there is a friendly business environment for all the companies that are operating in the country.
The regulations of carrying out business in Cyprus include having a number of business names that you intend to use to register your company. These names are sent to the offices of the registrar for searching of the register of company names. If the names are used, the government is kind enough to suggest a number of names that you can use but the company owner must consent to the use of these names. The business name serves as the company’s brand.
In addition to the business name, the Article and Memorandum of Association are also a requirement. This serves as an indicator of the business that the company has been registered. It shows the operations of a company as well as the management procedures. Depending on the size and type of company, other documents might be required. These include the minutes of the meetings held to discuss setting up a company in Cyprus. The letter given to the director at the time of appointment is also important. This is because most of the times the people who cause business downfalls are the directors as they are the decision makers.
The law in Cyprus requires every company to have a secretary. Their definition of secretary is an individual who spends time in the company premises at all working times. Such a person is required to maintain a record of the company transactions that occur daily. To ascertain all these requirements, the process of incorporating a company could take a week or more depending on the documents of the company that need vetting and the level of investment that a company plans to set up.
Before a company is incorporated, it must have achieved all the stipulated requirements. These include tax certificates and licenses. A huge percentage of the GDP in Cyprus accrues from the payment of licenses and tax. Due to this reason, every company in the country has to register at the income tax department so that they can be remitting tax on the incomes. The taxation rate is uniform for all companies. A trading license is issued for all the companies. With all these requirements, a company receives an official certificate that shows that it is incorporated and it can begin operations.
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