Foreign investors in Cyprus may incorporate the following legal entities:
- Companies. Private or public.
- European Companies (SE).
- Partnerships, general or limited.
The most popular legal entity chosen by foreign investors is the private company.
The procedure for registering a company in Cyprus includes firstly getting approval of the company's suggested name by the registrar of companies. After getting the approval the company has to file its memorandum, articles and other related documents.
- Basics of Cyprus's Limited Liability Companies.
- One person is sufficient to form a company.
- The shareholders may be individuals or a limited company of any nationality.
- The liability of the owners of the company is limited to the sum of capital invested.
- The total number of shareholders will not exceed 50.
- The basic minimum capital may not be less than EUR 1,708. Shares should be in Euros.
- Nominee shareholders are allowed in Cyprus.
- Each company must appoint at least one director. The director can be a foreign resident too.
- A company can be appointed as a director too.
- Each company must appoint a secretary. The secretary can be non-resident.
Yet if the new company wants to have its management and control in Cyprus a resident secretary is preferable.
- Each company must have a registered office in Cyprus.
- Registration of a new company takes up to five days. It is also possible to buy ready made (shelf ) companies.
- Cyprus is attractive to foreign investor due to its low corporate 10% income tax rate, exemption from tax withholding for payment of dividends, good financial and telecommunication infrastructure and English speaking professionals.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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