Updated: August 16, 2024
Cyprus company formation is a term used to describe the process of incorporating a legal entity, commonly called the Company, in the Republic of Cyprus. The same term is also stated as company registration or incorporation.
Incorporating a company in Cyprus is easier and faster than in most European countries. The process is initiated with an application for name approval, and then registering a company is processed by the Registrar of Companies. The company will be incorporated within 7-10 days.
Company formation includes the procedures and undertakings before the registration of the company. Company incorporation requires the preparation of the Memorandum and Articles of Association, which include the rules of the company and the duties of the directors and shareholders. If a company formation and registration will be made by a law firm in Cyprus, due diligence regarding a company’s beneficial owners is mandatory before registration.
The company formation procedure in Cyprus begins with the appointment of a licensed lawyer who will undertake to prepare all necessary incorporation documents and register the company. Under the Cyprus Companies law, only licensed Cyprus lawyers can prepare and sign the company registration documents.
The existence of each company begins with the Registrar of Companies’ issuance of the certificate of incorporation.
All the Cyprus companies are registered at the Cyprus Registrar of Companies, which is responsible for keeping the Register of Companies and must be notified of any company changes.
The first step is to apply for approval of the desired company name. The company name includes the abbreviation Ltd or Limited at the end. The name must not be unreasonably similar to the name of an existing company.
Also, only in exceptional cases for valid reasons the following will be allowed:
Usually, we recommend using unique names and adding the owners’ initials in the front to get Cyprus company name approval from the register more quickly. Besides, we have a list of already approved company names, which can be used for immediate Cyprus company registration.
The name approval procedure takes 1-3 working days.
The Documents to be prepared by the lawyer and submitted to the Registrar of Companies for registration of a Cyprus company are the following:
Each Cyprus company’s articles of association must provide the following:
The Memorandum of a Cyprus company sets the rules regulating the company’s operations. Together with the articles, it binds the company and its members and is essentially an agreement of each company member to comply with these two documents’ provisions.
The form HE1 is an affidavit from the lawyer who confirms that he has prepared all the company documents according to Cyprus company law’s provisions.
The form HE2 provides the company’s registered office address. Every Cyprus company must maintain a registered address. The lawyer can optionally offer this service. At this address, all notifications to the company can be officially served.
The form HE3 provides the company’s officials, director, and secretary. Each company must have at least one director and a secretary. Additional directors can be appointed.
The director can be any natural person or company and does not need to be a shareholder. The same applies to the secretary. Both the above might be offered as a service by licensed lawyers.
All the above documents are submitted to the Cyprus Registrar of Companies for approval. On approval, the following certificates are issued:
The company certificates can be in English or Greek. An additional fee is charged for having the Articles and Memorandum in English. This is due to extra fees payable to the Registrar of Companies and Greek-to-English translation fees.
The approval and registration of the company take 2-4 working days after submission.
The government fees required for a Cyprus company formation and registration are the following:
Our team of accountants and company law experts led by Marios Konstantinou offer the following services:
Contact us for a complimentary personal consultation and discover our services with fixed fees.
How much does it cost to set up a company in Cyprus?
The costs for registering a company in Cyprus include €10 per name (EUR 20 for accelerated procedure) for name registration, €165 plus €100 for accelerated company registration. If documents need translating by the Registrar of Companies (RoC), there's an additional fee of €160. Additionally, your lawyer will charge a fee, which should be agreed upon beforehand.
How do I set up a company in Cyprus?
To set up a company in Cyprus, you need a local lawyer licensed by the Cyprus Bar Association. The lawyer will handle name approval, prepare paperwork, and discuss details such as officers, shareholders, and capital structure. After filing the memorandum of association and required documents with the RoC, you must register the company for tax and social insurance. The lawyer will also assist in creating a business bank account and explain compliance requirements.
What do the charges for acquiring a ready-made Cyprus company include?
Acquiring a ready-made, or shelf, company in Cyprus involves the normal incorporation costs, any fees for changes like altering company directors, and the lawyer’s fee. Shelf companies are already registered but have not traded or been active, offering a quicker start for business operations.
How long does it take for a company to start work in Cyprus?
From our experience, it takes a company about three weeks (ranging from two to four weeks) to start operations in Cyprus.
Can I open a bank account without forming a Cyprus company?
Yes, you can open a bank account in Cyprus without forming a company. This includes opening a business account with an international banking unit. However, banks typically require some business interest in Cyprus for approval. You may need to be a sole trader or conduct international business through Cyprus. Banks must open a basic account if you don’t have one in another bank.
Do I have to visit Cyprus to establish a company?
While initial company formation doesn't require your presence in Cyprus, you must be present to sign paperwork for opening a bank account.
Can I register a new Cyprus company online?
Yes, you can register a company in Cyprus online. Follow this link for the online registration process: https://efiling.drcor.mcit.gov.cy/.
Is there a minimum capital requirement for the formation of a Cyprus company?
There is no minimum share capital requirement for a Cyprus private limited company. A public limited company requires a minimum share capital of 15,000 Cyprus pounds, equivalent to €25,629.
George K. Konstantinou
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