Company registration in Cyprus
Creating and developing your own business process is not easy. This takes a lot of time and effort, and often investors need to be creative. In the context of global economic instability, a large number of businessmen choose to conduct business on the island of Cyprus.
How do I open a company in Cyprus? This question is asked by many, in our article you will learn more information about business activities in this republic. It is worth noting that for several years the island has accumulated a considerable client base, which makes it attractive for those who want to open an offshore company here.
Who should open a company in Cyprus?
First of all, you need to know-absolutely every entrepreneur can create a company in Cyprus. For citizens of any country, there are no restrictions in this regard. You will be able to store your assets in an economically stable country and eventually enter the global market. To register a company in Cyprus means to conduct your business without corruption — the republic conducts its policy in such a way as to support honest entrepreneurs. Also, if you have always dreamed of traveling, opening a company in Cyprus will be useful for you, as it will allow you to cross the borders of more than 150 countries without a visa.
Why should you open an offshore company in Cyprus?
Registering a company in Cyprus has many advantages.
First, you will be able to cooperate with any European contractors. Opening a business in a European jurisdiction allows you to carry out duty-free transportation of goods throughout the EU.
Secondly, there is no currency control in Cyprus (a transparent banking system) and maximum protection of the client’s assets.
Third, the absence of taxes (zero rate on the purchase and sale of securities and income from foreign branches).
Fourth, you have the opportunity to obtain a passport of a country that is known to be part of the European Union, while remaining a citizen of your country, if dual citizenship is allowed in it.
Fifth, there is a reliable protection of assets and the Cypriot legislation always meets the needs of businessmen.
Registering a company in Cyprus with the right approach promises success for your business and brand awareness. Simple corporate reporting rules apply here. This makes it possible to hide information about the business owner if you want.
Opening a business in Cyprus has always been profitable in terms of minimal taxes and not only that.
1. Speed. On this island, the creation of a company can take only a week, unlike in the CIS countries, where it takes several months or even years to open your own business.
2.It doesn’t matter which country you are a citizen of, you still have the opportunity to open your own business here.
3. The minimum capital is determined individually, unlike in most countries, where the minimum capital is the same for everyone, which is not always convenient and clearly does not apply to advantages.
4. Maximum investor confidentiality.
5. It is possible to transfer a ready-made enterprise to Cyprus and bring it to the international level.
6. Work in a reputable jurisdiction on absolutely legal grounds.
7. Lowest maintenance costs, unlike in other European Union countries.
8. If your company is closed, you can restore it within 20 years.
9. A registered company in Cyprus inspires more confidence. In other words, this way you gain more customers and partners, thereby getting the planned income.
The process of starting a business
Foreign entrepreneurs can register the same types of companies in Cyprus as local residents. The most common form of business is a limited liability company, and there are also other forms of registration. In addition, foreign companies can set up branches, subsidiaries and representative offices.
According to the Companies Act, there are several requirements that must be met in order to start a business in Cyprus. Before the registration procedure, a foreign investor is invited to choose a business form in accordance with which his company will carry out its activities.
What follows is:
- reserve a trade name (it must be unique and reflect the company’s activities);
- prepare a number of documents, including the Foundation Agreement and the Charter;
- open a corporate bank account with a local bank where the authorized capital will be placed;
- appoint company officers-a director and a secretary (all companies in Cyprus must have secretaries);
- submit documents to the Registration Chamber;
- register a company for taxation, VAT, social insurance and pension provision;
- get the necessary business licenses that will allow you to start your business.
After completing these steps and obtaining a ” Business Registration Certificate”, the company can hire staff and start operating.
What to consider when starting a business in Cyprus
When making a decision to start a foreign business, a foreign entrepreneur is recommended to follow the steps mentioned above, as well as take into account several aspects::
- the company, regardless of its form, must have a legal address or registered address in Cyprus — virtual offices are available for this purpose;
- for certain types of activities, a businessman will need to issue special licenses and permits;
- for limited liability companies, the most important documents that must be submitted during registration are the Memorandum and Articles of Association containing information about shareholders, directors and the secretary.
- statutory documents must be notarized and written in Greek or English.
How much will it cost to register a company in Cyprus?
One of the most common aspects associated with starting a business in Cyprus concerns the fees that must be paid during the registration process. The good news is that these fees are low — about $ 2,000, plus an annual fee of approximately $ 350. This amount includes:
- company registration fee;
- annual maintenance fee;
- accounting fees.
8 most important rules for businesspeople
For those who start their own business in Cyprus, it will be useful to get acquainted with the business culture and etiquette that reigns on this island. Here are some facts about Cypriot business etiquette and culture.
- Local residents value personal communication, so they prefer to conduct business directly, rather than by phone or email.
- Cyprus managers are hospitable to their foreign colleagues and value mutual respect, sincerity and personal trust.
- Organization of meetings.Arrange your first business meeting in Cyprus by phone or email to indicate the time and place.
- Business cards.Representatives of Cypriot companies are willing to exchange business cards with foreign partners.It is considered polite when the business card is written in both English and Greek.
- When referring to a Cyprus partner, use the prefix Mr or Mrs, followed by the person’s last name.As soon as the business relationship becomes more personal, the Cyprus partner will invite you to address each other by their first names.
- Business dress code.Cypriots dress like most Europeans.Managers wear a formal suit before business meetings.
- Minutes of business meetings.A business meeting should be arranged in advance, but a few days before that, you can call or send an email confirming that everything is in force.Punctuality is key when doing business in Cyprus, so try never to be late.
- Business meetings in Cyprus usually involve a joint lunch after the negotiations.It is considered bad form to refuse it.
What type of business should I choose?
Starting a company in Cyprus is not as difficult as it seems at first glance. One of the best options can be considered a hotel business. After all, tourism in Cyprus is quite well developed. Hundreds of thousands of tourists a season and more than a million a year visit this island. You can build your own hotel or buy a ready-made one for doing business.
Many entrepreneurs buy a building specifically for a hotel, renovate it and create an interior in a certain style. You can also buy a ready-made business, which is often done by foreigners who have come to Cyprus. Some people rent out a restaurant or bar for a year and after they are convinced of the profitability of the property, they buy it out.
In Cyprus, registering a company is a very easy process that will save you from the taxes of your country. Registration of a Cyprus company is mainly carried out with the help of specialized organizations. You can find such services online, and they are publicly available to everyone.
The island does not suffer from crises, like many other states, is economically stable with a good standard of living. Many people who once went to Cyprus do not want to return to their homeland. It will not be difficult to build a business here — there are many companies whose specialists provide their services to the Russian-speaking population. Try to create your own company in Cyprus and live in pleasure, doing what you love!