Cyprus Incorporation: Ultimate Step by Step Guide

• Yes, a foreigner can register a company in Cyprus. The setting up process is the same for any organisation looking to register their company. Moreover, opening a bank account in Cyprus for foreigners is also possible.

• For example: if you have a business in Hong Kong and wish to expand to Cyprus, you can easily do so.

• Tetra Consultants can assist you in this entire endeavour. Do contact us if you wish to receive more information.

• For a company limited by shares, the steps to set up a company are the same as for all the businesses. However, your company must meet the following requirements:

• • You must have at least one and seven shareholders for a private and public company, respectively.

• • There can be a maximum of 50 shareholders for a private limited company.

• • A public company can issue shares to the public easily whereas it is difficult to transfer shares of a private company.

• There may be some additional requirements depending on the form of business entity you wish to set up. For example: if you wish to set up a Cyprus holding company, you must pay a small tax of 0.6% levied on the capital when registering.

• Tetra Consultants can assist you in understanding the requirements and help you in setting up your business.

In order to set up a business in Cyprus, you must follow these steps:

• Check to see if you meet all the requirements:

• • You must have an agent who is a Cypriot.

• • You must also register your main office address.

• • You must have the required documents like Articles of Association prepared.

• Reserve company name:

• • You may be wondering how to register a business name in Cyprus.

• • You must ensure that your proposed business name is unique and available for use.

• • You must then apply to the online portal of the Registrar of Companies Cyprus and pay the required fee.

• Apply to the Trade registrar:

• • You must file the documents you had prepared with the Trade Registrar and pay the Cyprus company formation fees.

• • You will receive the Registration certificate after approval.

• Complete Tax registration Cyprus:

• • You may wonder how to register tax in Cyprus.

• • You must complete two applications to obtain a tax number for your business and to find VAT number Cyprus.

• Open a Cyprus bank account:

• • You must also open an account with a bank in Cyprus.

• The total engagement fee depends on the services you require from Tetra Consultants. We provide multiple services including planning and strategizing with your firm, assisting you through the incorporation process, and ensuring that your firm is compliant with the laws of the country. To be clearer, you can choose our Cyprus company formation with bank account service which would not include post-registration assistance and would have a relatively lower fee.

• This total fee includes the Cyprus company formation fees which vary depending on the form of entity you wish to set up, your activity, and more.

• We will discuss the total engagement fee in detail before we begin with the registration process.

Companies set up in Cyprus for the following reasons:

• Low Corporate Tax rates:

• • The corporate tax rate levied by the government is 12.5% which is relatively lower than that of most countries in the European Union and worldwide.

• • The government also provides additional tax exemptions on capital gains, dividends, and more and incentives for the companies.

• Government Policies:

• • The government policies are business-friendly and the government is trying to reform the business framework.

• • Cyprus has an extensive tax treaty network with over 65 countries to prevent double taxation issues.

• Connectivity:

• • Cyprus is well connected to the world through its well-established shipping hub and airports connecting to major cities in not only Europe but worldwide.

• Usually, it takes approximately ten days to complete the company registration process. After the registration process is completed, setting up an account with the bank will take approximately four weeks.

• Cyprus Ltd is a limited liability company in Cyprus. It is the most popular form of business for foreign investors. This form of business is taken to be a separate legal entity such that the directors and shareholders have unlimited liability (they are not liable to cover the firm’s debts and liabilities).

• No, Cyprus is not a tax haven. Tax havens are those countries that provide individuals and companies with little to 0 tax liability. Since the government raised the Cyprus business tax to 12.5% in 2019, it is not considered to be a tax haven.

• There are approximately 223,000 registered companies as of 31^st December 2019. This number continues to grow further.

• One of the best businesses for you to do in Cyprus is in the Shipping industry. Cyprus is strategically located allowing it has strong connectivity between Europe, Middle East, and Asia with its well-established shipping port. Therefore, having an export-import business in Cyprus could serve to be profitable for you. However, there are already approximately 130 Cyprus trading companies, including some Cypriot companies and multinational companies in Cyprus. Hence, this industry may be slightly competitive.

• You may wish to start small and then eventually grow your business and therefore may wonder how to register a small business in Cyprus. The process is the same as the registration of any other business in Cyprus but the cost may differ.