Cypriot company can either be a private company established by oneor more persons or public company established by any seven or morepersons who cooperate for any legal purpose and form a limitedliability company, by signing the Memorandum of Association and bycomplying 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
- Memorandumand Articles of Association: these specify the activities in which thecompany may engage and the means by which it will govern its affairs
- CapitalStructure: 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 trusteesin 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
- Companysecretary and registered office address: every company must have acompany secretary and a registered office address in Cyprus which mayalso be used as the business address of the company.
EveryCypriot company is required to maintain proper books of account and toprepare audited financial statements in accordance with IFRS. Inaccordance with Cypriot Tax Law, every company is required to submit anannual corporate income tax return. There is also the requirement forannual financial statements prepared in Greek and a company annualreturn to be submitted to the Registrar of Companies. The translationsare often undertaken by the local advisers at minimal cost.