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Cyprus Formation of Company – Steps

 

CYPRUS FORMATION OF COMPANY –  PRACTICAL STEPS

Cyprus company formation form

  1. Name

The approval of the name can take up to five working days.  The general principle of the name should be such that a similar name does not exist; the name is not too general and does not contain words such as international, group etc.  Please let us have a choice of two or three names.

  1. Share Capital

We suggest that the minimum share capital of a Cyprus company is €1.000 for the type of the company you require.

  1. Shareholders

Each Cyprus company must have as a minimum one shareholder. If the shareholders are more than one, you have to decide in which portion you wish to divide the shares. We need full names, address, nationality and the proportion of holding as well as the documents referred to in paragraph 5 below. For nominee shareholders please refer to paragraph 6 below.

  1. Directors

Each Cyprus company must have at least one director. For each registered director we need his full name, address and nationality as well as the documents referred to in paragraph 5 below. For nominee directors please refer to paragraph 6 below.

  1. Documents required

5.1. Bank reference

For each shareholder and registered director, we require a bank reference the text of which should approximately read:

Quote

To:  ………………….

……………………………Cyprus

We confirm that Mr. or Mrs. ………………………    has been our client for more than a year and that he/she carried out his bank account transactions in a very satisfactory manner.

Mr. or Mrs. ……………………… has proved to be creditworthy, respectable and of good financial standing.

Unquote

This reference must be in original form and will remain confidential.

5.2. Curriculum Vitae (CV)

C.V. of all beneficial owners and registered directors and their respective address.

5.3. Passport

Copies of the passports of all beneficial owners and registered directors.

5.4. Proof of Residential Address – Utility Bills

Copy of the most recent electricity, or water, or gas, or telephone bill, both from beneficial owners and registered directors.

5.5. Companies, Investment Funds as beneficial owner

In case where the beneficial owner is a company, then we require the following:

  1. Full set of registration documents.

  2. Group structure.

  3. Bank reference and proof of residential address (see 5.1 and 5.4 above) for the company and its ultimate beneficial owner.

  4. Latest available audited financial statements.

5.6 Trusts as beneficial owners

In case where the beneficial owner is a Trust, then we require the following:

  1. Full set of registration documents. (ie Trust Settlement etc)

  2. Group structure.

  3. Bank reference and proof of residential address (see 5.1 and 5.4 above) for the Trust, the Settlor, the Trustee and all of the beneficiaries of the Trust.

  4. Latest available audited financial statements of the Trust (if any)

  1. Nominee services

Our management company provides full nominee services such as shareholders, directors (minimum one, however, the director can not be the same as the secretary in case the company chooses to have only one director), company secretary and registered office.

By using nominees, you will keep your identity secret, as it will not be a public record.

In order to safeguard ownership, the nominee shareholder, director and company secretary, will provide you with the following:

  • Undated letter of resignation with no claim on the company.

  • Undated resolution for appointment of new directors and company secretary leaving the name of the new appointee blank.

  • Undated instruments of transfer of shares.

  • Undated resolutions approving the above transfer.

  • Deeds of trust by the nominees to the beneficial shareholders declaring that  they hold the shares in trust.

  1. Cyprus company documents

All the documents of the company are in Greek and English.

  1. International and Cyprus bank accounts

You may open in any currency a Cyprus bank account or an International bank account.  The Directors of the Cyprus company will appoint the authorized signatories. Interest received from Cyprus bank accounts is free from taxes. Cyprus banks include, Bank of Cyprus Ltd., Alpha Bank Ltd, Hellenic Bank Ltd.

  1. Cyprus taxation

The Cyprus company’s net profit after all expenses is subject to 12.5% Cyprus income tax. Subsequent dividend paid to non-resident shareholders is free from any further Cyprus taxes.

  1. Duration

It will take approximately fifteen to twenty working days to form a Cyprus company.

Cyprus company formation form

For Cyprus company formation or to receive a quotation please download and complete the ” Cyprus company formation form” above and send by email

on [email protected]

RELATED CYPRUS COMPANY SERVICES WE PROVIDE (OTHER THAN CYPRUS FORMATION OF COMPANY):

  1. Cyprus bank account. Opening of a Cyprus bank account
  2. Cyprus company representation services, including nominee director, nominee shareholders, registered office, company secretary, maintaining company’s registry etc.
  3. Secretarial/ corporate services. Liaison and register of pledges to the Cyprus Registrar of Companies, preparation of minutes and resolutions of Board of Directors meetings, preparation of minutes and resolutions of extraordinary shareholders general meetings, preparation of Annual Return and submission to the Cyprus Registrar of Companies accompanied by a set of financial statements etc
  4. Document preparation and requisitions. Preparation of Trust deeds, powers of attorney, other related legal documents etc, requesting new certificates from the Cyprus Registrar of Companies i.e. Incorporation, Directors and Secretary, Registered office and Shareholders. Requesting Certificates of Good Standing from the Cyprus Registrar of Companies, issuance of Tax Residence Certificates from Inland Revenue Department, certification of documents by Certifying Officer, certification of documents by Ministries and/or Embassies (Apostile – Hague  convention)
  5. Cyprus banking administration services. Preparing and submitting documentation for opening a bank account, bank account administration, correspondence with banks, execution of bank payments, translation of documents, issuing invoices, letter of credit, correspondence and telephone/fax services, etc
  6. Legal services. Preparation and review of agreements and contracts i.e. provision of services agreements, loan agreements, etc
  7. Cyprus citizenships (Cyprus passports) and work permits. Obtaining Cyprus citizenships (Cyprus passports) and work permits for expatriates

Contact us

Please contact us for a free personal consultationAll information will be treated in the strictest confidence. We are happy to sign Non Disclosure Agreement (NDA) or any other legal safeguards.

[email protected]

 

The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.

PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.

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