Cyprus Company Formation

The formative steps of a company’s transition begin here in Cyprus. Here at Prospectacy Ltd, we facilitate the comprehension of national laws and limitations, ensuring a short wait-time until your business is up and running. Alongside the interest in remaining correct and consistent, our company acknowledges and values a business-owner’s interest in avoiding tax overpayment and maximizing the benefits of investments. That’s why we want to help you with your Cyprus company formation.

We approach a new business with full access to Cypriot business decrees and complete explanations of tax-free dividends. Logically, some unfamiliar components may arise when considering a new business location; our team will guide you with extensive directives. The 12.5% corporate tax cap is undoubtedly extremely appealing to the knowledgeable entrepreneurs reading this, but the benefits go on. In addition to the tax cap, a company fully registered in Cyprus is exempt from corporate taxes: an extremely alluring benefit. Profit maximization and outgoing finance minimization are critical to a wise business-owner.

Our business techniques at Prospectacy Ltd have caused numerous owners to realize they should have established their businesses in the corporate-friendly country of Cyprus earlier. We will help your company reap the benefits of this unique combination of favourable business aspects offered in Cyprus. Whether your company is a global commodity or a small start-up, we want to help stimulate progress and growth while observing more profits and less expenditure to other tax hungry entities. Isn’t it time for you to give us a call and experience this and more for your own business?

Factors to Consider When Establishing A Company in Cyprus

There are many factors to consider before establishing a company in any of the countries in the world. Better tax planning is one of the more significant and impacting factors. Cyprus is a shining example; thousands of businessmen invest their money because of this better tax planning. Therefore, Cyprus Company Formation has become a popular topic on the Internet. Our country offers favourable incentives which motivate businessmen around the world to start their companies here. These factors make Cyprus the ultimate business centre of the world.

In he past, two types of companies were registered in Cyprus: offshore and local. Different benefits were given to the two types of companies. Now, however, differentiation between the formation of either company does not exist. Offshore or overseas companies registered in Cyprus accustomed to enjoy a lowered level of business tax at the rate of 4.25%. This is no more the case and the primary rate for corporation tax is now at 12%. Even at 12.5%, this is currently the best rate in Europe, with other tax bonuses in force to be able to bring in foreign investment.

Reserve the Company name and get initial approval from the Registrar of companies:
A conventional form application for authorization of name is submitted personally or by mail to the One Stop Shop Cyprus. It can also be submitted in electronic format to the Registrar of Companies and Official Receiver, via the E-filing website. This will charge EUR 30- which is EUR 10 mandatory and extra EUR 20 for expediting the procedure, which is optional.
Prepare the Memorandum and Article of association by a Lawyer:
The Registrar of Companies does not have any standard form for the Memorandum and Articles of association. The Companies Law offers a general template appropriate for any kind of activities. It is a statutory necessity to have lawyers prepare the Memorandum and Articles of Association, who should also sign the specific declaration. This will take about a day to complete and it will cost about 1000 Euros.
Submit documents at the Companies Section of the Department of Registrar of Companies and Official Receiver:
This will take around two days and it will cost EUR 205 registration fees + 0.6% on the authorized capital + EUR 220 for the certificates.
Register at the Tax Department for tax:
Register at the Tax Department for VAT:
Register for Social Contribution at the Ministry of Labor, Welfare and Social Insurance:
After following these steps you can start your own company in Cyprus and enjoy the benefits given by them. If you already have a company, you have the chance to develop your company further by starting a branch in Cyprus. It is obvious that you can establish a successful business company in this favorable business environment in Cyprus.

Types of Cyprus Company Formation

As explained registering your company in Cyprus will benefit you in many ways especially in better tax planning and incentives both financial and non-financial. Cyprus company formation is an interesting topic and is one of the most demanded and most searched topic on the web reason being the lower tax rates, favorable business environment and higher effectiveness in tax planning. Moreover the financial and business environment of Cyprus is highly favorable for business start-ups and is one of the most attractive destinations for businessmen as latest researches suggest. Moving on it is also important to get a clear understanding on the types of companies registered in the country. Every company formation Cyprus is subject to the Company Law under British Companies Act of 1948. Following are the types of special companies an investor can form in the Cyprus.

Private Company Limited by shares

This type of companies formed in Cyprus restricts public issue of shares and debentures and limits the shareholders to fifty. A single investor can also start a company of this type and this is one of the most famous Company types in the country.

Private Company that is Exempt

This special type of company is formed by a corporation with a different company with a maximum of fifty debenture holders. This type of companies are not subjected to statutory restrictions on loans and directors.

Company Limited by Guarantee

This type of companies in Cyprus are charitable and non-profit companies. The liability of the members of this special type of company is limited to the extent to which that is agreed upon the memorandum of association.

Branch of overseas companies in Cyprus

Any foreign company has the right to open up a branch in the country and is encouraged by the government in an effort to promote foreign direct investments within the country. The company needs to follow the documentation process in Greek and then can start its operation as a branch in Cyprus.

Public Company

This type of company must consist of at least 7 shareholders and 2 directors. The minimum share capital requirement is Euro 25,630 and should be settled before the issuance of trading certificate.