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GLOBAL INFO

Cyprus

COUNTRY:

CYPRUS

QUESTION:

ANSWER:

1.      What are the main company forms in your country?

-Limited Liability with Shares, (most favourite)

-Limited Liability by guarantee, (not commonly used)

-Partnership

2.      Which is the most preferred company form by foreign investors?

Limited Liability by Shares

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

No limitation of capital. From €1 to billions.

-There can be various types of shares, with certain privileges of limitations – Could be issued at nominal value or at a premium, (which is unlimited) – A person may subscribe in full the whole capital or more persons’ parts of it and may pay it in parts, (e.g. Buy 10.000 shares valued €10.000.- and pay first only for 1000 shares or pay 10% of all shares.

 

4.      What are the basic rules of shareholders liability for company debts in this company?

ONLY to pay the value of the shares held by that shareholder.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

The “LTD” Company is managed by Director/s appointed by the Shareholders in general meeting. Director/s can be either physical persons or Companies irrespective of Nationality.

6.      How long does the registration procedure of this company take?

Depending on approval of its name, (takes about 10 days), the company will be formed/established within a week. Pre-approved names make it possible to form/establish a Company faster.

 

7.      What are the main costs of formation of this company in local currency?

Two types of Costs: 1) Out of Pocket expenses, like fees to the Registrar/Certifications etc. depending on the capital of the Company, (for capital of about €10.000.-, approximately €950.-) and 2) Fees of lawyers about €1.000.-  plus 19% V.A.T for small capitals and standard activities- special agreement thereafter.

8.      What is the average attorney’s fee of the formation of this company in local currency?

Depending on the complexity of the Memorandum and Articles to be drafted and the Capital of the Company, (small size capital with standard articles and memorandum about €1.000.- plus 19% V.A.T.).

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

The Company MUST be registered with the Registrar of Cyprus Companies and submit annual reports with information as to changes in the capital, shareholders and Officers. An annual licence levy of €350 per Company applies payable by end of June every year.

10.   What are the main auditor requirements?

Company must keep proper accounting records and Audited Financial Statements for every financial year which are submitted to the Registrar and to the Tax Office.