The process of registering a company in Cyprus is easier and faster than in most European countries. Registration is completed within 7-10 days The company involves procedures and processes prior to company registration. Company formation requires the preparation of the Memorandum and Articles of Association. If the formation and registration is done by a law firm in Cyprus, due diligence regarding the beneficial owners of a Company is mandatory. According to the Companies Law, only authorized Cyprus lawyers can prepare the documents required for the company registration in the registry. The name approval process takes 1-3 business days. The documents that must be prepared by the lawyer and submitted to the Registrar of Companies for the registration of a company: -Incorporation Document -Articles of Association -Statutory Declaration of Compliance (Form HE1) -Forms HE2 and HE3 The Incorporation Document must contain: -The name of the company, as approved. -The business activities of the company. The Articles of Association of a Cyprus company is the document that sets out the rules governing the operation of the company. The articles of association and the founding document are binding documents on the members of the company and constitute a substantial agreement by each member of the company to comply with the provisions of these two documents. Statutory Declaration of Compliance (Form HE1) Form HE1 is a sworn statement by the lawyer confirming that he has prepared all the company documents in accordance with the provisions of Cyprus company law. Form HE2 – Registered Office Address Form HE2 contains the address of the company’s registered office. Every Cyprus company must maintain a registered address in Cyprus, which can be provided as a service by a solicitor. All notices to the company cannot be sent to this address. Form HE3 – Directors and Secretary Form HE3 contains information about the company’s officers, directors and secretaries. Every company must have at least one director and one secretary. Additional directors can be appointed. A director can be a natural person or a company and does not have to be a shareholder of the company. The same applies to the secretary. Both of these roles can be provided as a service by authorised solicitors. Filing of documents with the Registrar The documents mentioned above are submitted to the Cyprus Registrar of Companies for approval. Upon approval, the following certificates are issued: -Incorporation -Directors and Secretary -Registered Office -Shareholders -Incorporation and Articles of Association The Company Certificates should be drawn up in English or Greek. Registration Timeline The approval and registration of the company takes 2-4 working days after the submission of the necessary documents. Fees The fees for the formation and registration of a company in Cyprus are as follows: -Name approval €30 Stamp for HE1 form €52 Company registration fees €485 Incorporation and Articles of Association in English (optional €240) Courier fee €35
• Low tax rate, 12.5% on net profits. • Dividends between Cypriot companies are not taxed, while dividends from foreign investments are exempt from tax (with criteria that are easily met) provided that the share of the investment exceeds 1%. • Interest that arises from or is closely linked to the ordinary conduct of the business is taxed at 12.5% (e.g. interest on trade debtors or between companies in a group where the company acts as the group's financial instrument). • Capital gains tax is imposed only on immovable property located in Cyprus or on shares in a private company that owns immovable property in Cyprus. • Profits from the sale of securities (including shares) are exempt from any tax. • Tax losses are carried forward to the next 5 years. • Set-off of group losses is permitted. • Reorganizations of companies (e.g. mergers, divisions) are not taxed. • Profits from a permanent establishment outside Cyprus are exempt from tax. • No withholding tax is levied on the distribution of dividends, or the payment of interest and royalties (when used outside Cyprus) to non-tax residents of Cyprus.
Copyright in Cyprus is automatic and no registration is required. The Copyright Law (59/1976) protects Cypriot citizens for their works published anywhere and citizens of foreign countries for their works published in Cyprus. • Scientific works • Literary works, including computer programs • Musical works • Artistic works, including photographs • Films • Databases • Sound recordings • Broadcasts • Publications of unpublished works
