A Cypriot company can either be a private company established by one or more persons or public company established by any seven or more persons who cooperate for any legal purpose and form a limited liability company, by signing the Memorandum of Association and by complying with the provisions of the Cyprus Companies Law.
Steps to form a Company in Cyprus
The principal information required when registering a Cypriot company includes:
- Name of the company: company name reservation and approval procedures exist
- Memorandum and Articles of Association: these specify the activities in which the company may engage and the means by which it will govern its affairs
- Capital Structure: there is no minimum required issued and paid up capital, however it is common to have share capital of at least €1,000
- Shareholders: There must be at least one shareholder – shares can be held by trustees in Cyprus in trust for the beneficial owners
- Directors: Although not a requirement, it is common practise for the majority of the directors to be Cypriot residents
- Company secretary and registered office address: every company must have a company secretary and a registered office address in Cyprus which may also be used as the business address of the company.
Every Cypriot company is required to maintain proper books of account and to prepare audited financial statements in accordance with IFRS. In accordance with Cypriot Tax Law, every company is required to submit an annual corporate income tax return. There is also the requirement for annual financial statements prepared in Greek and a company annual return to be submitted to the Registrar of Companies. The translations are often undertaken by the local advisers at minimal cost.