Basic Legal Requirements for Cyprus Company Formation
Incorporating a company in Cyprus is a straight-forward and simple procedure. Precisely, the registration of Cyprus Company is completed within a few days.
The basic legal requirements for setting up a Cyprus company are listed below.
- Company Name:The procedure of company formation begins upon the approval of the company’s name by the Cyprus Registrar of Companies and Official Receiver. The Registrar is likely to reject a name in case it is similar to that of an existing company or it is too general or pompous. The proposed name of the company shall end Ltd or Limited. RAH Legal recommends you to propose more than one name so that to have more probabilities to get the name you want.
- Share Capital: Authorised or nominal capital denotes the total capital which the Company is allowed to distribute to shareholders. On the contrary, the paid up Capital denotes the percentage of the authorised capital that has been issued to, and paid up by the shareholders. For Cyprus companies standard authorised capital is €000 and there is no minimum paid up capital requirements. Moreover, there are no restrictions regarding the shares denomination but usually the capital is divided into shares of €1 each.
- Shareholders: A Cyprus company is required to have at least one shareholder. Shareholders can be either physical or legal persons, Cypriots or foreigners. For every shareholder the following details are required: full name, nationality,passport copy, physical address, profession and the number of shares to be taken up. Have in mind that in case one of the shareholders is a non-Cypriot legal entity, then the basic incorporation documents must be provided.Shareholders who wish to ensure their anonymity may appoint nominee shareholders. Nominee shareholders can be of any nationality. In this point, it should be underlined that RAH Legal provides Nominee Services.
- Directors:The minimum number of Directors is one and can be a physical or a legal person. Directors can be Cypriots or Foreigners. Nevertheless, it is highly recommended to be Cyprus residents so that the company to be considered as a tax resident of Cyprus. For every director the following details are required full name, nationality, passport copy, physical address and profession. If the director is a legal entity, then the incorporation documents must be submitted. In case the directors do not wish to disclose their identity, then Nominee Directors can be appointed. RAH Legal provides Nominee Services and may facilitate the appointment of local Directors.
- Secretary: A Cyprus incorporated company shall have a secretary who acts under the control and instructions of company’s directors. The company secretary keeps the Company’s statutory registers and carries out ministerial duties of a non-executive character. The company secretary can be a physical or a legal person. Furthermore, the Director and the Secretary can be the same person. For the company secretary the following details are required full name, nationality, passport copy, physical address and profession. If the secretary is a legal entity, then the incorporation documents must be submitted. Nominee Secretary is appointed for privacy and confidentiality purposes. RAH Legal provides can be appointed as a Nominee Secretary.
- Registered Office:A Cyprus company is required to have a registered office in Cyprus. The registered office is the address where all the company’s official documents are kept. RAH Legal may provide you with a registered office address.
- Memorandum of Articles and Incorporation:The Memorandum and the Articles of Association is the constitutional charter of the company and is drafted by a lawyer based in Cyprus. RAH Legal may draft the Memorandum and the Articles of Association and prepare all the other necessary documents which are required for the finalisation of company registration in Cyprus. Our team may provide you with the necessary legal and administrative support.
Precisely, it is consisted by the following parts:
- The Memorandum of Association includes a description of the main business activities of the Company, the limited liability character of the company and its authorised capital.
- The Articles of Association include the Regulations under which the Company carries out its business activities and regulates the rights of the shareholders.
- Accounting & Audit:Cyprus incorporated companies are required to prepare and submit to the Registrar of Companies and Official Receiver the Annual Return (HE32 document) together with the Financial Annual Statements. The annual financial statements can be submitted provided that have been:
- Approved and signed by the Board of Directors
- Signed by the Secretary
- Audited by an external Auditor
- Presented at the Annual General Meeting for adoption by company’s shareholders
Have in mind that the Annual Return must be prepared and submitted within 28 days from the date of the Annual General Meeting. RAH Legal maintains a wide network with auditors and accountants so we may provide you with a professional assistance for the preparation and submission of Annual Return.
Contact RAH Legal and incorporate a Cyprus Company within a few days:
The experienced legal and administrative team of RAH Legal is able to provide you with tailor-made services and assist you to incorporate a Cyprus company within a few days in a cost-effective manner as our vision is to contribute to your business success. In addition to this, we maintain a wide network with reputable audit firms in Cyprus. Our services are available in English, Greek, Arabic and Hebrew. If you wish to incorporate a company in Cyprus effectively and efficiently, then please contact us.