Foreign investors find Cyprus a really appealing country to start their business.
Registering a company in Cyprus is not complicated, but the process can become difficult and complicated when the documents are not completed correctly or are incomplete.
Requirements for company registration in Cyprus:
- choosing the right type of entity based on thorough research and business plan
- the preparation of all the documents needed to register the company
- drafting and notarizing the company’s Memorandum and Articles of Association.
- issuing a power of attorney to the person or firm handling the registration, if required
- appointing the company directors and secretary for which certain conditions must be respected
- opening a corporate bank account where the share capital will be deposited
One of the most important stages of the company registration procedure is drafting the company’s Memorandum and Articles of Association. Τhose, must contain specific information and details about the company so that it is valid from the Cyprus Companies Register.
TYPES OF LEGAL ENTITIES THAT CAN BE REGISTERED IN CYPRUS:
In Cyprus, the activities of any company are regulated by the revised Company Law (Cap.113), since 2003.
- The limited liability company in Cyprus (LTD) may be formed by at least one shareholder, but no more than 50(excluding employees and former employees of the same group of companies-29.1B). The capital is divided into shares that are restricted to transfer. The liability of the shareholders is limited to the number of their shares. Only one director is managing the company and the General Meeting of the shareholders is taking all the major decisions. Also, a Secretary must be appointed to keep under his custody the Register of Members, the Register of Charges, the Register of Directors and Secretary, the Company Seal, and the Minute Book.
- A public limited liability company in Cyprus doesn’t have a maximum number of shareholders and the shares are freely transferable. The duration of a public limited liability company may be stipulated in the Articles of Association but usually, it’s unlimited.
Cyprus Company Limited by Guarantee is a type of company that is copying the English type of company limited by guarantee. This type of business is specially designed for charitable and non-profit making purposes. It doesn’t require a minimum share capital. It doesn’t have a maximum number of shareholders.