ROADMAP TO ESTABLISHING A CYPRUS COMPANY

Roadmap to Establishing a Cyprus Company

How to set up a Cyprus Company:

Establishing a Company in Cyprus may be simpler than you may think. With the roadmap for establishing a Cyprus Company, we at Maricorp provide, the process is made easy and hassle-free for you.  Cyprus is an ideal location for many multinational corporations to have Companies as they have an ideal legal and corporate Tax regime. Cyprus allows companies to reduce their tax worldwide and enjoy multiple exemptions on their spending or income.

As Cyprus is a member of the European Union, it remains a secure and favored location for investments.

Step 1

Submit name for approval: the name should be specific and unique – general names are not accepted by the Companies House in Cyprus due to Intellectual Property rights.

Step 2

Decide the authorized Share Capital of the Company – if the Shareholders are looking to inject funds into the Company they should consider establishing the Company with Share Premium (see table below).

Step 3

Decide whether more than one class of shares is need i.e. CLASS A and CLASS B (see table below).

§     CLASS A§     CLASS B
§     Ordinary shares: 1000 value €1§     Ordinary shares: 200 value €1
§     Share premium: 100 value €2.490§     Share premium: 20 value €2.490
§     Total Investment: €250.000§     Total Investment: €50.000

Note: The above example shows 2 different classes of shares distributed to 2 different shareholders at a premium. CLASS A shareholder ends up with a total investment of €250.000 and CLASS B shareholder ends up with a total investment of €50.000 including both nominal and share premium value.

Step 4

Decide on the Directors and Secretary of the Company. Both the Board of Directors and the Secretary of the Company must reside in Cyprus. The Management and Control of a Cyprus Company which wishes to be a Cyprus tax resident should be in Cyprus. That means local tax resident Directors.

Step 5

Decide on the activities and special clauses on the Memorandum and Articles. For example, the principal activities of the Company shall be in the first paragraph of the Memorandum. In addition, if for example the sole shareholder wishes to resign the Directors with a simple notice this shall be included in the Articles of the Company.

Step 6

Sign the Memorandum and Articles for submission to the Registrar of Companies.

After this roadmap fpr establishing a Cyprus company has been competed, the Company can be submitted for incorporation to the registrar of Companies. A lawyer signs off the Memorandum and Articles as well as the Statutory Declaration (form HE1) at the court.

For more information on our services, please visit our webpage or get in touch with us!

Cyprus Company FAQ

What is the corporation’s tax rate in Cyprus

The corporation tax rate in Cyprus is  12.5% standard Corporate Tax rate.

If the Company is subject to the IP Box the Corporation Tax rate is 2.5%

How much is withholding Tax in Cyprus?

Cyprus does not levy a WHT on dividends, interests, and royalties paid to non-residents of Cyprus except in the case of royalties earned on rights used within Cyprus such as:

  • The exercise in Cyprus of any profession or vocation and the remuneration of non-resident public entertainers (i.e. theatrical, musical including football clubs, other athletic missions etc).
  • 5% WHT is levied on gross income derived from within Cyprus by non-residents with no local permanent establishment for services in regards to the exploration, extraction or exploitation of the continental shelf as well as the establishment and use of pipelines and other installations on the ground, on the seabed and on the surface of the sea.

How do you open a Bank account in Cyprus?

For this process you will need the below documents to apply with:

  • Passport copy certified with Apostille.
  • Curriculum Vitae (CV) of beneficial owner.
  • The Source and value of wealth, such as Tax Declaration, Payslips, Dividend certificates and bank statements.
  • Recent utility bill (within 3 months) in original as a proof of residential address such as: electricity, gas, internet, water or landline phone.
  • Recent bank reference letter (issued within 3 months) in original.

What range of Double Tax Treaties does Cyprus have all over the globe?

Cyprus has Double Tax Treaties with;

  1. The European Union.
  2. Eastern Europe.
  3. China.
  4. CIS Countries.
  5. Russia.
  6. And other jurisdictions.

How long does it take to form a company in Cyprus?

To form a company in Cyprus is very easy process.

Normally, it takes around 5-7 business days, however, if an already approved name has been chosen by our client it could take up to 3-4 business days.

We at MARICORP hold over 10-15 approved Cyprus Company names at any given point.

Contact us

Where to find us:

81, Griva Digeni Avenue, MARINOS Court, 2nd floor, office 203

P.O. BOx  42656, P.C. 6501, 6043

Larnaca – Cyprus

Tel: +357 24663402 , Fax: +357 24663409

E-mail: admin@cyprusconsultancy.com

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