The Republic of Cyprus companies incorporation process:
Summarised information on the structure of private companies in The Republic of Cyprus is laid down below.
The minimum of one legal or natural person is required and there is no residency qualification.
It should be noted that in order to obtain residency of The Republic of Cyprus the director must be a resident and the management and control of the company is to be carried out in The Republic of Cyprus.
Appointment of local directors is recommended (they must be composed of the majority of the Board of Directors).
We can provide local (nominee) directors in full compliance with the Law of The Republic of Cyprus to manage the company according to your instructions.
The company must have at least one shareholder and there is no residency qualification. If the potential beneficiary of the company wishes to preserve total confidentiality, our firm can offer nominee shareholders.
A secretary is mandatory. The Interstatus Group of Companies can act as a secretary unless other instructions are provided. Please note that this is purely a statutory function and the real secretarial services are not implied, should you need a real secretary we can also provide one. Please request relevant information from our virtual office adviser.
The company must have a registered office in The Republic of Cyprus.
This does not mean that you need to set up an administrative office, our office can be used as the registered office of your company.
The Republic of Cyprus applies a minimum share capital requirement.
In practise the authorised and issued share capital of a new company is usually at least 1,000 shares at €1 each. Shares need not be paid up. Bearer shares are prohibited.
3 weeks. Shelf companies are available.
Accounting and auditing:
According to tax legislation, every corporate entity of The Republic of Cyprus deriving its income from any profit or other benefits is required to maintain accounting and prepare financial statements. These must be according to the applicable accounting regulations and IFRS (International Financial Reporting Standards) for submission to the Registrar of Companies.
Tax declarations prepared according to the results of the financial statements are presented to the Inland Revenue Department of the Republic of Cyprus.
Holding companies with subsidiaries must consolidate their financial statements according to IFRS.
All companies, whether operational or not, must submit financial statements for auditing to a certified auditor of The Republic of Cyprus and obtain the auditor’s opinion.
Audited financial statements must be submitted to the Company Registrar within one year after the end of the financial period.
If the company has no operations during the financial period it must submit to the Registrar of Companies the relevant return and tax declaration (“zero report”).
Late submission of financial reports incurs penalties.
Companies of The Republic of Cyprus must submit an annual return containing information on shareholders and directors, secretary, liabilities of the company, its registered office, etc. to the Company Registrar. This return must be presented within 42 days after the general meeting of shareholders.
In the event of late submission of the returns the Registrar of Companies suspends the issue of certificates required for operation.
Companies submitting audited financial statements may be required to present the reports electronically.
All value added tax registered companies must submit a VAT declaration within 10 days after the end of the month following the end of the tax period.
Financial statements and accounting books must be kept for at least 6 years at the registered office of the company and must be accessible for official inspection at any time.
Information in the registers:
The Company Register of The Republic of Cyprus is open to the public. Information on directors, shareholders and financial statements of companies are freely accessible.
It is recommended to use nominees to preserve total confidentiality.