Cyprus is an island in the Mediterranean Sea. It is the largest island and is home to over 700,000 citizens. Most of the citizens in Cyprus are businessmen while the rest work for the government. The process of incorporation of a company in Cyprus will require a number of things. These are necessary as proof that the company directors are interested in conducting business humbly without interfering with other businesses belonging to the natives. The first requirement before incorporation is a business name. Business name proposals are sent to the office of the company registrar and the registrar must approve them. If there is another business that has the same name as the business you are registering, you will be required to get an alternative name. The registrar offers name suggestions for the people who are unable to get good business names.
Another requirement for the incorporation of a company in Cyprus is the articles and memorandum of association. These documents give a clear outline of the objectives of a company, the management structure and how the business plans to conduct its activities. It outlines the duties of every shareholder in the company and ensures that there is a system followed in the company operations. For a company to be incorporated in Cyprus there must be a bank reference. This reference serves as security and assures the government that the company has a capacity of transacting in the range that they have stated in the articles of association.
Cyprus has set a standard share capital that all the companies should have before incorporation. The share capital stands at 10,000 shares that are issued at a minimum price of one Euro. The number of shareholders is not important but there must be at least one shareholder. This makes sure that there is a beneficiary of the company. Cyprus allows the incorporation of companies through agents. This is mainly for the foreign countries where they allow the investor company to register as a company but under the name of another company that already exists in Cyprus. These services are mainly offered for the people who prefer anonymity.
An important document that is required in the incorporation of a company in Cyprus is an affidavit that is issued after paying a certain amount in a court of law. This shows that the company’s owners are ready to work under the regulations of the state and that they will comply with all the company requirements. For foreign investors, Cyprus restricts the operation of financial, insurance and banking services in the country. This is done in protection of the country’s interests. Unlike other countries, it is not a requirement that a company should get a seal in Cyprus. However, some business titles must be consented to before they are registered. These are mainly related to the financial sector and other critical industries like healthcare and teaching.
Before incorporation, a company must register with the income tax department, which ensures that it remits its tax on income after every financial period.