Steps of Cyprus Company Incorporation
It is common known fact that it is possible to incorporate a Cyprus Company remotely. In this case, an experienced law provider is needed. You must understand how things work around in Cyprus, its legislation, procedures and how to get the best out of it.
Coming into cooperation with law provider, you will be asked to sign an engagement agreement before anything else.
In addition, you will be required to present scans of your personal documents in accordance with due diligence and compliance procedure.
Before starting the process of the company incorporation, it is significant to elaborate a proper plan. This step will include:
- Choosing an appropriate name for your future entity. You need a name that captivates the attention of your customers. Moreover, Company’s name needs to be unique and must necessarily end with the word “LIMITED” or “LTD”.
- Create a corporate structure. It is significant to outline the structure of your company conspicuously. In other words – to form a skeleton of your company.
- It is necessary to be determined with shareholders, directors, secretary, and office.
- The minimum number of shareholders is 1 and the maximum 99.
A shareholder can be a physical or legal person of any nationality. Details of shareholders such as their name, address and nationality, are part of a public record.
- As to share capital, here is no special requirement regarding minimum or maximum numbers. It is recommended for companies with a minimum share capital of Euro 1,000 made up to 1000 shares of Euro 1.00 each.
- Cyprus Company must have at least one Director and a Secretary. A director can be a physical or legal person of any nationality. Details of directors are part of public record;
- A Cyprus company may operate from abroad or may have a fully-fledged office in Cyprus. There are certain regulations and procedures that must be fulfilled in case a businessperson wishes to establish a fully-fledged office in Cyprus.
After defining with the desirable name of the company, it must be reserved as fast as possible for registration approval. It can be done via the Department of Registrar of Companies and official Receiver (DR-COR). After approval, the name will be under reservation for up to six months.
This step includes the preparation of company’s documents. The first thing for an establishment is signing the Memorandum and Articles of Association of the company. This document includes the name and object of the business. In must, it has:
- The address of the subscribers
- Amount of the share capital
- Name of subscribers and the number of shares
Articles of association must come with:
- Voting rights of members
- The internal regulations based on which a company will be engaged in its daily operations
- Provisions about the rights, duties and responsibilities of the company’s shareholders and directors.
- The date of the shareholders’ general meeting
- And the first appointment directors
- Other documents to register a company in Cyprus include personal and business legal documents and bank details.
This step envisages document submission. Here it is necessary to submit signed forms, certified due diligence documents, and an affidavit signed by a Cypriot lawyer.
The DR-COR approves the company registration and the certificates once the company is incorporated.
Documents that must be received upon completion:
- Memorandum and Articles of Association Signed by the DR-COR
- Certificate of Incorporation
- Certificate of directors and secretary
- Certificate of Shareholders
- Certificate of Registered office
Owing a Cyprus company it is possible to apply for a bank account opening in any country of your interest and/or conducting business with.
It is important to obtain company tax identification number (TIN) which is compulsory to have as well as VAT registration if your expected turnover for the year will be equal or more than 15.600 Euro.
To hire staff in Cypriot company, it is possible to do only after the company registration with the Ministry of Labor, Welfare, and Social Insurance as an employer and receive unique id number as employer.