Establishing a company in Cyprus
Cyprus is an island west of Syria, south of Turkey and northwest of Israel. It has been the site of constant battle for control since the days of antiquity and up to the 1970s, recently resulting in its division between Turkey and Greece. Each territory has its own government and reigning president. Currently the political situation is stable; its legal system is primarily British, official languages are Greek and Turkish respectively, and many of its legal documentation is rendered in English (making it easier for foreign companies to register there).
Cyprus enjoys moderate weather 300 days a year; in summers the mid-island areas can reach 38°C. It has two mountain ranges –Kyrenia along the island’s northern coast and the Troodos which boasts the highest elevation of Mount Olympus (1952m). Between these ranges lies a fertile valley used for agriculture.
- It is only 250 km north of Israel (45 minute flight).
- The Cyprian Tourism Department manages marketing campaigns in many locations to encourage tourism, including Russia, Germany and many Arab states. Millions of euros are invested in this enterprise.
- Natural gas deposits have recently been discovered on the island, allowing Cyprus to export large quantities of gas to Europe and provide a stable revenue source for years to come.
Cyprus is part of the eurozone and its economy is based on private entrepreneurship with the role of the government merely to regulate and provide public services. Tourism contributes substantially with 2.4 million visitors each year, bringing in 5 billion euro to the island economy and employing over 120,000 local workers.
Cyprus boasts an advanced banking system and modern transportation infrastructure, making it a popular destination for offshore companies.
Offshore companies in Cyprus are subject to certain restrictions: they may not deal in banking, insurance or financial services unless specifically authorized to do so. Also, they may not trade with certified locals or other local businesses.
The process of registering there is extremely quick (average of 22 days), the corporate tax rate is 12.5%, and shareholder information may be kept confidential by working through trustees.
General
Type of company |
IBC – International Business Company |
Relevant Companies Law |
Cyprus Companies Law, Cap.113 |
Offices |
Law requires companies to provide a local office address |
Language of original incorporation documents |
English and Greek |
Finance and Taxation
Currency |
EUR |
Corporate tax rate |
12.5% |
Standard share capital |
5,000 EUR |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Required |
Obligation to appoint local secretary |
Required |
Type of entity that may function as company secretary |
Individual and/or company |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Required only in Resident companies |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual and/or company |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
None |
Minimum number of shareholders |
1 |
Type of entity that may register as shareholder |
Individual and/or company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding office holders accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Required – may be in any location |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Required |
Accept
