Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Cyprus are as mentioned below:

• Cyprus Company
• Company Limited by Shares
• Public Companies
• Private Companies
• Branch of a Foreign Company
• Partnership
• General Partnership
• Limited Partnership
• Sole Proprietor
• Cyprus International Trust
• Cooperatives

Time Frame for Incorporation of Company in Cyprus varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for Cyprus Company formation process to be completed is 6-7 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Cyprus:

• Favorable tax system
• Ability to use a company in Cyprus for the organization of intra-group financing
• Ability to register the company as a payer of value added tax in the EU
• No minimum capitalization requirement
• No strict legislation in the field of transfer pricing

Tax Registration and Filing

Companies resident in Cyprus are subject to income tax on their worldwide income while non-resident companies are taxed only on income derived from a permanent establishment in Cyprus and on rental income from property located in Cyprus.

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject.  Cyprus has entered into double tax treaties with about 50 countries.

Trademark registration

For trademark registration in Cyprus, an application needs to be made to the Cyprus Trademark office. The Trademark Registration in Cyprus is valid 7 years from the date of filing trademark and is renewable for similar periods of 14 years.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Cyprus for your business. For assistance or advice in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Cyprus:

• Proper minutes books and records for the Company must be maintained
• 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.
• All companies must obtain a unique tax identification number with the Cyprus Tax Department.
• All companies should register to the Ministry of Labor for Social Contribution

Accounting Services

In Cyprus, except the first year of the company’s existence, which may have a longer or shorter duration, the fiscal year corresponds in principle to the calendar year. The Companies must maintain proper books of Accounts for the business transactions.

YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Cyprus Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Cyprus, at the end of each fiscal year, the management must prepare audited financial statements in accordance with International Financial Reporting Standards (IFRS). 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.

YourGlobalPro professionals provide you auditing services as required by your business in Cyprus.

Banking

Opening an account in a bank is quite easy in Cyprus. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

• The major banks in Cyprus are Alpha Bank Cyprus Ltd., Bank of Cyprus Public Company Ltd.,
• Co-operative Central Bank Ltd. (CCB) and Hellenic Bank Public Company Limited.  All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Cyprus.

Legal and Compliance

In Cyprus, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Cyprus legal and compliance requirement to be followed by incorporated entities:

• The articles of association must be established in writing either by notarized deed or by private contract duration.
• There is no minimum required issued and paid up capital, however it is common to have share capital of at least 1,000 euro.
• There must be at least one shareholder. Shares can be held by trustees in Cyprus in trust for the beneficial owners.

YourGlobalPro professionals can assist you in Cyprus Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Cyprus:

• There are no specific requirements for renewing a fixed-term contract but if a contract for a permanent task is for a period of more than 30 months, it may be considered as an indefinite term contract.
• Companies needs to offer 100%of hourly pay for overnight rate.
• Paid annual leaves regardless years in tenure is 20 days.
• Visas are not required for citizens of an EU member state, Iceland, Liechtenstein, Norway or Switzerland.
• Short-stay or travel visas (multiple-entry visas) allow aliens who seek entry to Cyprus for reasons other than immigration to enter once or several times. The duration of each visit may not exceed three months in any half-year, beginning from the date of first entry.
• Non-EU nationals (third-country nationals) can work and reside in Cyprus if they register and obtain the required permits. Eligible companies of foreign interests (International Business Companies, or IBCs) can register with the Civil Registry and Migration Department (CRMD) and follow a simplified procedure for employing third-country nationals in Cyprus.
• For nationals from EU member states wishing to stay for more than three months or begin employment, they must apply at the CRMD for the issuance of registration certificate (yellow slip) within one month after the expiration of the three-month period.

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