Offshore Company in Cyprus - Incorporate in Cyprus

Fletcher kennedy are offshore company formation specialists. We incorporate limited liability companies in Cyprus. Cyprus is an established and popular place to incorporate limited liability companies. Our fee to incorporate a Cyprus limited liability company is £1995. This includes all government fees and provides a fully configured Cyprus Company with all the necessary services for the first year. Our fee for second and subsequent years is £790.  Order Secure On-Line

Cyprus Company Incorporation Checklist

Cyprus Company Formations
Cyprus - Limited Liability Company
Cyprus - Trusts
Cyprus - Incorporation Checklist

INTRODUCTION

Cyprus is at the north-eastern end of the Mediterranean Sea at the crossroads of Europe and Africa. It covers an area of 9,251 sq km and lies 65 km south of Turkey, 96 km west of Syria, 385 km North of Egypt and some 980 km south-east of Athens.

The principal topographical features of Cyprus are the two mountain ranges running along the centre and north-east of the Island, separated by a wide and fertile plain.

Cyprus has a pleasant climate with dry, hot summers and mild winters.

POPULATION

The population of Cyprus is about 758,000 (2000 est.). Greek Cypriots form the largest ethnic community representing approximately 78%, Turkish Cypriots comprise the second largest community representing 18% and the remaining  4% representing other minorities.

POLITICAL STRUCTURE

Cyprus became an independent Republic in 1960. The political system is modelled on Western democracies in which individual rights are respected and private enterprise is given every opportunity to develop. Under its Constitution, Cyprus has a presidential system of Government. The President is the Head of State and is elected for a five-year term of office.

The executive arm of the Government is the Council of Ministers to which the President appoints members. The Ministers are responsible for the administration of all matters falling within the domain of their ministries and for the implementation of legislation. Legislative power is in the hands of the House of Representatives, which consists of 56 elected members who hold office for a period of five years. A multi-party system operates in Cyprus and the electoral system is based on proportional representation.

The legal system is based on that of the United Kingdom and all statutes regulating business matters and procedure are based on English Law. Most laws are officially translated in to English.

INFRASTRUCTURE AND ECONOMY

Cyprus is readily accessible by air and sea. The major port facilities are those of Limassol and Larnaca, situated along the south coast of the Island.

The economy of Cyprus is based on a free enterprise system. The Government's role is limited to regulation, planning and the provision of public utilities. During the last ten years, the economy of Cyprus has demonstrated spectacular growth and its currency has enjoyed relative stability.

LANGUAGE

Greek, English and Turkish are the official languages of Cyprus. English is widely spoken and understood, particularly in commercial and government sectors.

CURRENCY

Cypriot pounds.

EXCHANGE CONTROL

Yes, but does not apply to IBC companies.

TYPE OF LAW

Civil code with many English Common Law influences.

PRINCIPAL CORPORATE LEGISLATION

Companies Law, Cap. 113, as amended.

COMPANY INFORMATION

TYPE OF COMPANY FOR INTERNATIONAL TRADE AND INVESTMENT

Companies incorporated under the Companies Law, Cap 113, as amended, who have obtained Exchange Control permission from the Central Bank of Cyprus to acquire IBC company status.

PROCEDURE TO INCORPORATE

By submission of the Memorandum and Articles of Association to the Registrar of Companies, together with an affidavit before a Court and the appropriate registration fee.

RESTRICTIONS ON TRADING

Cannot undertake to the business of banking, insurance or the rendering of financial services to the public unless special permission is granted, and cannot trade with resident individuals or companies situated in Cyprus other than in relation to the maintenance of premises, banking and professional services.

POWERS OF COMPANY

The powers and objects of a Cyprus company are contained within the Memorandum of Association and have to be specific.

LANGUAGE OF LEGISLATION AND CORPORATE DOCUMENTS

English and Greek.

REGISTERED OFFICE REQUIRED

Yes, must be maintained in Cyprus.

SHELF COMPANIES AVAILABLE

Yes.

TIME SCALE TO INCORPORATE

Approximately two days, subject to name approval.

NAME RESTRICTIONS

Any word that the Registrar considers undesirable. Any name that is identical or similar to an existing company. Any name that implies illegal activity or implies royal or government patronage, the following words or their derivatives: asset management, asset manager, assurance, bank, banking, broker, brokerage, capital, credit, currency, custodian, custody, dealer, dealing, deposit, derivative, exchange, fiduciary, finance, financial, fund, future, insurance, lending, loan, lender, option, pension, portfolio, reserves, savings, security, stock, trust or trustees.

LANGUAGE OF NAME

Names may be expressed in Greek or any language using the Latin alphabet if the Registrar is in receipt of a Greek or English translation and the name is not considered undesirable.

NAMES REQUIRING CONSENT OR A LICENCE

The following names or their derivatives: bank, trust, building society, insurance, assurance, reinsurance, their foreign language equivalents or any name that the Registrar considers may have a connection with the aforementioned.

SUFFIXES TO DENOTE LIMITED LIABILITY

Limited or Ltd.

DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES

Yes, only to the Central Banks of Cyprus where strict confidentiality is legally protected.

COMPLIANCE

AUTHORISED AND ISSUED SHARE CAPITAL

The share capital must be expressed in Cyprus pounds. The minimum authorised, issued and paid up share capital of a Cyprus IBC company is CYP 1,000. For companies wishing to establish a physical presence in Cyprus, the minimum is CYP 10,000.

CLASSES OF SHARES PERMITTED

Registered shares of par value, preference shares, redeemable shares and shares with no voting rights.

BEARER SHARES PERMITTED

Not permitted.

TAXATION

By virtue of special provisions in the Cyprus Income Tax Laws, the net chargeable profits of Cyprus IBC Companies are taxed at a rate of 4.25%.

DOUBLE TAXATION AGREEMENTS

Cyprus has concluded 33 double tax treaties with: Austria, Bulgaria, Belarus, Belgium, Canada, China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Mauritius, Norway, Poland, Romania, Russia, (including all the CIS countries except for Kazakhstan), Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Thailand, United Kingdom, USA and the former Yugoslavia.

LICENCE FEES

Not applicable.

FINANCIAL STATEMENT REQUIREMENTS

Audited financial statements have to be submitted to the Cyprus Taxation Authority and to the Central Bank of Cyprus annually.

DIRECTORS

The minimum number of directors is one. They may be natural persons or bodies corporate, be of any nationality and need not be resident in Cyprus.

COMPANY SECRETARY

All Cypriot companies must appoint a company secretary, who may be a natural person or body corporate. It is advisable to appoint a resident company secretary.

SHAREHOLDERS

The minimum number of shareholders is one.