Cyprus Company Law: The Intricacies of Starting a Business on the Island
After many years, Cyprus continues to maintain a leading position in the corporate sector. As one of the primary business and financial centers, the island attracts entrepreneurs and investors from around the world.
The country's popularity among businessmen can be attributed to the creation of favorable conditions for initiating and operating businesses, notably a lenient tax system. One of the key advantages of registering a business on the island is the absence of double taxation, thanks to an extensive network of agreements with other states. Additionally, Cyprus being a member of the European Union provides a favorable opportunity to access the Eurozone market.
Company Registration on the Island
Having studied Cyprus company law, it becomes clear that the term "company registration" in the country refers to "the process of creating a legal entity on the island." Often, such a legal entity is called a "company" or "firm."
Process of Registration of a Legal Entity in Cyprus
The procedure for registering a new company is not particularly complicated, but it has its own specifics. It is characterized by a clear sequence of steps, upon completion of which the successfully completed candidate receives registration documents and can carry out activities in the country. The procedure includes the following stages:
1Creation and Approval of the Company Name:
According to Cyprus company law, the process of establishing a new legal entity initiates with the approval of the company name. It's important to note that the name must include the abbreviation Ltd (Limited), indicating the type of business being registered. Specific restrictions apply to names, with certain words such as national, euro, trust, municipal, etc., being prohibited. The comprehensive list of restrictions is available on the website of the authorized body.
Once the proposed name is prepared, it must be submitted to the Registrar of Companies Department for approval. The typical duration of the approval procedure is 1-3 days. If the name adheres to the regulations and does not contain any prohibited words, the owner receives a positive response.
2Appointment of a Licensed Lawyer:
In accordance with Cyprus company law, the next step in the company registration process is the appointment of a licensed lawyer who is authorized to prepare the necessary incorporation documents. Only qualified licensed lawyers have the entitlement to carry out this activity, particularly signing the registration documents. To proceed with company registration, the following documents are required:
A document that establishes rules for the further regulation of the company's activities. The Memorandum, along with the Charter, is one of the two main documents that bind all participants to the company.
The primary document on the basis of which a legal entity is registered. It contains comprehensive information about the legality and legal freedom of the registered company. According to Cyprus company law, the Articles of Association must include the following information: approved name, commercial activity, size of the authorized capital, and limitation of liability of its members.
c)Forms HE2 and HE3:
HE2: A form that contains the legal address of the company (registered office where all notices are sent).
HE3: A form in which the company’s officials are indicated, including the director and secretary (mandatory positions). Additional directors can be registered if necessary.
d)Official Statement from a Lawyer (HE1):
An official statement provided by the licensed lawyer.
3Submission of Collected Documents to the Registrar of Companies of Cyprus:
After collecting the necessary documents, the next step is submitting them to the Registrar of Companies of Cyprus. The authorized body checks the documents for compliance with Cyprus company law. When confirming the registration of a new legal entity, the following documents are issued:
2)Registered Office Certificate
5)Memorandum and Charter Certificates:
Certificates issued can be printed in either Greek or English, providing flexibility in language preferences. These certificates collectively serve as legal evidence of the establishment and details of the newly registered legal entity in Cyprus.
Document processing takes up to 1 business week. Certificates for the approval and registration of a new company are typically issued within 2-4 business days.
Cost of Registering a New Company in Cyprus
The state establishes fees that must be paid by those wishing to register a new legal entity on the island. According to Cyprus Company Law, applicants are required to pay the following fees:
- €30 for approval of the company name.
- €52 for stamps for Form HE1.
- €485 – mandatory fee for registering a company.
- €240 – fee for printing the Memorandum and Articles of Association in English (if chosen; this service is free in Greek).
- €35 for courier services.
Note: The services of a lawyer who will prepare documents are not included in this estimate. The cost of a lawyer’s services depends on the company you contact.
Assistance in Registering a Company in Cyprus
Our agency offers services provided by highly qualified certified lawyers for the collection and preparation of documents to register a new company. We cater to a diverse clientele, ranging from small regional businesses to large international corporations, ensuring that our activities align with the legal code of the country.
Our staff possesses a comprehensive knowledge of Cyprus company law and extensive experience in corporate business across the country. Our lawyers offer a wide array of services, including administration, complex management and operations, as well as the registration of international companies and alternative investment vehicles. By choosing our company, you can avail yourself of the following services:
- Assistance in registering a new legal entity (company) in full compliance with Cyprus company law.
- Support at all stages of company registration and advice on collecting documents.
- Providing domicile and corporate governance services.
- Discussion and assignment of responsibilities and duties of the director.
- Assistance in corporate finance matters.
- Corporate structuring and client consulting.
- Maintaining agreements with investors and shareholders.
- Nominee services.
If you plan to establish a new company on the island, collaborating with a licensed lawyer is essential. Our agency offers clients the services of first-class specialists in the field of new company registration. They possess in-depth knowledge of Cyprus company law and are prepared to guide you through the entire process until the issuance of certificates of registration for your legal entity. By choosing our company, you will simplify the task and experience ease, while we handle all the complexities associated with opening a company.