Cyprus is located in the heart of the Mediterranean Sea. It has a population of 706,000 citizens and out of these, a third lives around the urban areas. Most of the companies that invest in the country also set up their plants and warehouses in the urban areas. This is because of the availability of cheap labor and other resources like energy and access to roads. Cypriot civic law requires all companies to meet a number of requirements before they are incorporated. This enables the government to control investment and at the same time, it ensures that the companies comply with the standards that are set for business practice in the country, as the law requires.
The first requirement that a company must fulfill is have a unique business name specific for every company. The company is supposed to send this name for approval to the registrar of company names who then must approve the name before application of a certificate of incorporation starts. In addition to the business name, a company must have articles and a memorandum of association. These too are filed with the registrar of companies to help the Cypriot government in solving commercial cases that are related to the company operations. However, Cyprus authorities do not interfere in the running of companies.
A physical address is required before a company is incorporated. This is mainly because the physical address acts as a sign that a company has perpetuity and that there exists a physical premises where the company management may be located. A company must have a recommendation from a credible bank that it is capable of transacting in the capacity that it states in the articles of association. The country must also have a company secretary. The secretary must always be available at the company premises to take care of business when the proprietors are not around. For the people who prefer anonymity when they are registering companies, you can hire agents who then register the company at their behest. Company secretaries should also be hired, but this may be done on a quasi basis where they need not appear at the company premises. However, the name of the secretary has to be forwarded for bureaucratic purposes.
Other requirements before incorporation include the trade licenses from area councils that allow the company to operate in a certain area. A company is also required to register at the income tax department. The corporate tax in Cyprus is a fixed at 10% and all companies are supposed to comply. The time taken to incorporate a company ranges from five to seven days. No fees are charged foreign investors by the government when incorporating a company, which makes Cyprus a favorite destination for the investors who may be interested in doing business in the Middle East. Incorporation comes with a certificate that is evidence that a company has fully met the requirements stipulated by the law and that the management of the company has agreed to conduct business as the Cypriot law requires.
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