Cyprus - Company Incorporation Guidance

Company Type	Time to Incorporate	Cost
LLC	5 days	£2330

The Limited company in Cyprus

The Limited Liability Company is the normal private company in Cyprus. Most companies operating in Cyprus are private limited companies. (Limited or Ltd). We can incorporate a Cyprus Limited company for you in five days.

Corporate Structure of a Limited Liability Company

• Only one director is required - can be an individual or corporate
• A Cypriot company must appoint a company secretary, which we will arrange for you
• There is no requirement for Cypriot residency for shareholders and directors, although a resident nominee director is recommended in many cases.
• All Cyprus businesses need a registered office
• Separate classes of shares with different rights to dividends are permitted

Imposition of Annual Fixed Duty on Cyprus Companies - €350

The Government of Cyprus has recently introduced a new legislation under which Cyprus Companies are required to pay an annual fixed duty of Euro 350 per annum to the Registrar of Companies. For groups of companies the total duty is capped at Euro 20.000.

The duty is not applicable to dormant companies (ie companies with no turnover in current year) and to those not owning any assets. The Company Director must make a declaration in either case.

The duty is also not applicable to companies registered in current year.

The duty for 2011 is due by 31 December 2011 and for subsequent years by 30 June.

If the duty is not paid on time but is paid within 2 months from due date then there will be a penalty of 10%. If it is paid within 5 months from due date, there will be a penalty of 30%.

If the duty is not paid within 5 months from due date, the Companies Registrar will strike off the company from Registry.

Nominee Services

The company can be restored at Registry if a duty of Euro 500 is paid within 2 years from strike off date or Euro 750 thereafter.

A Cypriot resident director is recommended to take advantage of Double Taxation Treaties.

Nominee shareholders are allowed and anonymity can be achieved by the use of our nominee shareholder service.

Political Structure

Formerly run by the British, Cyprus became an independent Republic in 1960. The political system is modeled on western democracies. Cyprus has a presidential system of Government. The President is the Head of State and is elected for a five year term of office.

The legal system is based on that of the United Kingdom and all statutes regulating business matters and procedure are based on English Law. Most laws are drafted in Greek and are officially translated into English.

Language

Greek, English and Turkish are the official languages of Cyprus. English is widely spoken and understood, particularly in commercial and government sectors.

Type of Company for International Trade and Investment

A limited liability company is incorporated in Cyprus under the Companies Law Cap 113  which is based on the British Companies Act 1948. Companies incorporated under the Companies Law, Cap 113, as amended, who have obtained Exchange Control permission from the Central Bank of Cyprus to acquire IBC company status.

Restrictions on Trading

A company cannot undertake the businesses of banking and insurance, or the render financial services to the public, unless special permission is granted. It may also not trade with resident individuals or companies situated in Cyprus other than in relation to the maintenance of premises, banking and professional services.

Powers of Company

The powers and objects of a Cyprus company are contained within the Memorandum of Association and have to be specific.

Language

Names may be expressed in Greek, or any language that uses the Latin alphabet, provided that the Registrar receives a Greek or English translation, and the name is not considered undesirable.

Names Requiring Consent or a Licence

The following names or their derivatives: bank, trust, building society, insurance, assurance, reinsurance, their foreign language equivalents or any name that the Registrar considers may have a connection with the aforementioned.