Cyprus has been a full member of the European Union since 2004 and a member of the Eurozone since 2008. The geographic position of Cyprus, connecting Europe to Africa, the Middle East and Asia has for centuries made the island a hub for business and trade.
This continues until today, whereby international corporations and high-net-worth individuals choose Cyprus to base their businesses and investments, making Cyprus companies one of the most popular vehicles used worldwide.
The Cyprus tax legislation, although extremely attractive with low taxation, is fully compliant with the EU Acquis Communautaire and EU Directives. It is in full compliance with the code of Conduct for Business Taxation and against harmful tax competition. As of April 2009, Cyprus proudly features on the White list of OECD. Finally, Cyprus abides by the Transparency Initiatives such as the US Foreign Account Tax Compliance Act (FACTA) and the OECD requirements (common reporting standard, which will come into effect in September 2017).
The name of a Cyprus company must be approved by the Registrar of Companies before the registration procedure commences. Names of companies similar to existing company names, names including specific words, or names of a “general meaning” are not approved. A company name must end with the word “Limited” or “Ltd”.
Object of the Company
The main objects/purpose of the company must be stated in the first paragraphs of the proposed company’s Memorandum and Articles of Association.
The Cyprus Companies Law provides for a minimum of one share and at least one registered shareholder. There is no minimum required share capital. The share capital must be in Euro or any other currency and may be subdivided into denominations with the creation of different classes of shares. The minimum number of “registered shareholders” should be one, being either be individuals or legal corporate entities.
There is a requirement for at least one director, who may be a physical or legal person, Cypriot or foreigner. It is advisable to appoint local directors to enable effective management and control in Cyprus rendering the company the tax resident status.
There is a requirement to also appoint a corporate secretary, who may also be a physical or legal person, Cypriot or foreigner.
The Cyprus Companies Law, Cap 113, as amended, allows for single member companies i.e. same person being shareholder, director and secretary.
Every Cyprus company should maintain a registered office, which must be in Cyprus. The registered office address is the official address of the company where the statutory books, registers, and the seal of the company should be kept. Summons and writs are also served at the registered office address.
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