Starting a New Company in Cyprus for Non-Residents: What You Need to Know
Are you thinking of starting a new company in Cyprus? Cyprus is a popular destination for international businesses looking to set up a company in Europe. The country’s favourable tax regime, strategic location, and business-friendly environment make it an attractive destination for non-resident entrepreneurs. In this blog post, we’ll explore what non-residents need to know when it comes to Cyprus company formation.
The Benefits of Setting up a Company in Cyprus
There are several benefits to setting up a company in Cyprus as a non-resident. These include:
Favourable tax regime with a low corporate tax rate of 12.5%
Access to the European Union market
Strategic location at the crossroads of Europe, Asia, and Africa
A highly skilled and educated workforce
A business-friendly environment with efficient bureaucracy
Attractive investment incentives
H2: The Types of Companies You Can Form in Cyprus
Non-residents can choose to form different types of companies in Cyprus, depending on their needs and goals. These include:
Private Limited Company (Ltd): This is the most common type of company in Cyprus and can be formed with a minimum of one director and shareholder. The liability of shareholders is limited to the amount of their investment in the company.
Public Limited Company (PLC): This is a company that can issue shares to the public and can be listed on a stock exchange. It requires a minimum of two directors and seven shareholders.
Branch: A non-resident company can establish a branch in Cyprus, which is an extension of the parent company. The branch is subject to the same legal and tax regulations as a local company.
Partnership: This is a business structure in which two or more individuals or entities share the profits and losses of the company.
The Process of Cyprus Company Formation
The process of forming a company in Cyprus as a non-resident is relatively straightforward. The steps involved include:
Choose a company name and have it approved by the Registrar of Companies.
Prepare and file the necessary legal documents, including the Memorandum and Articles of Association, with the Registrar of Companies.
Obtain any necessary licenses and permits for the business.
Register for taxes and social security contributions.
The Role of a Corporate Service Provider
Non-residents looking to form a company in Cyprus may find it helpful to work with a corporate service provider. These companies can provide assistance with the entire process of company formation, including:
Choosing a company name and registering it with the Registrar of Companies
Preparing and filing legal documents with the Registrar of Companies
Obtaining necessary licenses and permits
Registering for taxes and social security contributions
Providing ongoing support and advice
In conclusion, Cyprus offers an attractive destination for non-resident entrepreneurs looking to set up a company in Europe. The country’s favourable tax regime, strategic location, and business-friendly environment make it an ideal destination for businesses of all sizes and industries. By understanding the types of companies available, the process of company formation, and the role of corporate service providers, non-residents can set up a successful business in Cyprus.