If you are a foreign company that needs to register in Cyprus, you are on the right path. This country is a well-known location for companies to expand to a new jurisdiction. Cyprus has a rich history as a former British Colony. Thus, the majority of the population communicates in English. If you want to know how to register a company in Cyprus, you will be surprised at how straightforward it can be.
The country’s legal structure is framed on the standard English Common Law. It has paved the way for the country’s improving economy and provided a financial advantage for worldwide businesses.
Companies looking to open a business in Cyprus will enjoy various advantages such as an exciting financial opportunity, tax benefits, and a strong economy that continues to rise over the years. Each year, more companies choose to establish and register a company in Cyprus to enjoy tax and business opportunities.
Why Should You Register A Company in Cyprus?
If you plan to open a business in a country, whether it is an onshore or offshore company, registering it is one of the first things to do before you can operate. It is not as easy as opening a shop, and then you can start selling or offering services. There are different business laws in every country. Thus, if you target opening a business in Cyprus, you must comply with their rules and regulations.
There is an immense opportunity for businesses in the country, yet you have to understand how to tap in. Part of your planning is registering your business and entity name to legally conduct your business in the country.
Guide to Registering a Company in Cyprus
Business registration in Cyprus is simple. It may take about two weeks to complete the process. But after that, you can start your operations. In some cases, business registration can be done remotely. Here is a step-by-step guide on how to register a company in Cyprus:
The Planning Stage
The planning stage starts with a consultation with local business attorneys. Business owners who are not in the country should have a local agent to assist them with the complex processes. Ideally, business owners should also familiarize themselves with how things go and work around the industry before establishing a company in the country.
If you choose to work with a service provider, you may sign an engagement letter before starting the process. You should also expect to pay an engagement fee to your agent and provide them with all the personal and corporate documents required for registration.
Before you can open your business, you must prepare a plan for your operation. It may include the following:
- Having an appropriate name for your business. It should capture the attention of your clients.
- Develop a corporate structure. Businesses need to outline the structure of the company. This organizational chart must show the directors, shareholders, and secretaries. Crafting a company structure may take a while to complete.
The next step in the planning stage is reserving a business name. You have to submit three potential names and have these reserved as soon as possible at the Registrar of Companies for approval. When your business name is approved, it will be reserved for you for up to six months.
The Incorporation Stage
You are now ready to register a company in Cyprus at this phase. There are three steps to take here.
First is phase one of incorporation. You have to prepare all company documents that will be submitted for registration. A business must first sign the Memorandum and Articles of Association for the company. This type of document will include the name and the type of business. It shall contain the following details:
- Name of shareholders and the division of the shares
- The address of the company
- Amount of the share capital
Additionally, the Articles of Association should also include the following information:
- Internal regulations based on which the company will conduct its daily operations
- Date of the shareholder’s general meeting
- The duties, rights, and responsibilities of the directors and shareholders of the company
- The first appointment directors
- Voting rights of the members
You may need to provide other documents that the Registrar of Companies will ask to register for your company in Cyprus. Prepare your business documents as well as your bank details.
The second step of incorporation involves the submission of documents. The appropriate authorities must duly sign all the prepared forms. Due diligence documents must be certified. Along with an affidavit signed by a Cypriot lawyer, all these shall be submitted to the Registrar of Companies.
Lastly, the third step in the incorporation phase is receiving the approval of your business registration. Once the DR-COR approves your registration, they will provide company incorporation certificates. You will receive the following documents:
- Certificate of Registered Office
- Certificate of Directors and Secretaries
- Certificate of Shareholders
- Certificate of Incorporation
- Memorandum and Articles of Association
The Post Incorporation Phase
The post-incorporation phase is where you start finalizing your plans to establish your business in Cyprus.
The first step in this phase is to open a bank account. After registering a company in Cyprus, you need to apply for a bank account. This will be the one that the company will use for all business transactions and tax filing.
Next, it is vital to get the company tax identification number. It is compulsory to obtain a TIN and VAT registration for the company, especially if you are expecting more or less than 15.60 EU turnovers for the year.
Lastly, the final step in the post-registration phase is to register as an employer. You will be given a unique ID number as an employer. Then you can start hiring people for the company. A company will not hire staff in their Cypriot-registered company before if they are not registered with the Ministry of Labor, Welfare, and Social Insurance as an employer.
For business owners who are not in the country, registering a company in Cyprus is a tedious process. Some processes may take time due to bureaucratic formalities and conventions. Hiring the services of a local agent or a business lawyer in the country is a favorable option. With the help of local agents, you will also avoid penalties due to non-compliance with documentary requirements.