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Cyprus is at the north-eastern end of the Mediterranean Sea
between Europe and Africa. It has a population of approximately
760,000 made up largely of Greek Cypriots and Turkish Cypriots.
TYPE OF TRADING COMPANY
International Business Company's ('IBC's') are incorporated
in Cyprus under the Companies Law, Cap 113, as amended.
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Type of Company |
IBC |
Type of Law |
Common |
Is it possible to acquire
a shelf company |
Yes |
Time it takes to incorporate
a company |
5 days |
Government Fees |
Not applicable |
Corporate taxation |
10% |
Double taxation treaty |
Yes |
Officers of the Company |
|
Number of Directors |
Minimum of One |
Is a Corporate Body permitted
to act as Director |
Yes |
Does the Director have to
be local |
No - but advisable for tax
purposes |
Does the public have access
to the register of directors or secretary |
Yes |
Company Secretary Required |
Yes |
Share Capital |
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Standard currency although
any permitted |
Cyprus Pound |
Minimum paid up capital |
CYP 5,000 |
Usual authorised |
CYP 5,000 |
Shareholders Minimum |
One |
Accounts and Annual Return |
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Requirement to prepare accounts |
Yes |
Does the public have access to the Accounts |
No |
Do accounts need to be filed |
Yes |
Audit requirements |
Yes |
Is there a requirement to
file an annual return |
Yes |
PROCEDURE TO INCORPORATE
The Memorandum and Articles are submitted to the Registrar
of Companies together with an affidavit before a Court.
RESTRICTIONS ON TRADING
IBC's cannot carry on business within Cyprus (though statutory
exceptions include maintaining records and a bank account
in Cyprus, holding company meetings, and engaging local advisors
etc.) They cannot undertake the business of banking, insurance,
assurance, reinsurance, fund management, asset management
(other than the company's own assets) or any other activity
that would suggest an association with the banking and insurance
industries unless they have special permission from the Central
Bank of Cyprus.
POWERS OF COMPANY
A Company incorporated in Cyprus has its powers dictated
within the Memorandum of Association.
LANGUAGE OF CORPORATE DOCUMENTATION
A Cyprus Company is typically incorporated using either the
English or Greek language.
NAME RESTRICTIONS
An IBC cannot register with any name that has already been
incorporated in Cyprus, or is so similar to an existing name
that it may cause confusion. Any name which in the opinion
of the Registrar is considered undesirable, obscene or offensive
will also be rejected. Others names that will be rejected
are a ny name that imply illegal activity or implies royal
or government patronage, anything that implies or contains
the words asset management, asset manager, assurance, bank,
banking, broker, brokerage, capital, credit, currency, custodian,
custody, dealer, dealing, deposit, derivative, exchange, fiduciary,
finance, financial, fund, future, insurance, lending, loan,
lender, option, pension, portfolio, reserves, savings, security,
stock, trust or trustees.
COMPANY NAMES
IBC's can only end with the words Limited or Ltd.
LANGUAGE
Greek and English are widely spoken.
REGISTERED OFFICE REQUIRED
An IBC must have its registered office in Cyprus.
AUTHORISED and ISSUED SHARE CAPITAL
Most companies are normally incorporated with an authorised
share capital of CYP 5,000 at par value and the minimum paid
up must be CYP 1,000. For companies actually wanting to have
a physical presence in Cyprus the minimum is CYP 10,000.
CLASSES OF SHARES
The Company can have be registered with preference shares,
redeemable shares and shares with or without voting rights.
DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES
Details of the beneficial owners are given to the Central
Bank of Cyprus where strict confidentiality is ensured.
TAXATION
The net chargeable profit of Cyprus IBC's is subject to a
tax rate of 10%.
DOUBLE TAXATION AGREEMENTS
Cyprus has concluded 33 double tax treaties with: Austria,
Bulgaria, Belarus, Belgium, Canada, China, the Czech Republic,
Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland,
Italy, Kuwait, Malta, Mauritius, Norway, Poland, Romania,
Russia, (including most of the CIS countries, i.e. Azerbaijan,
Armenia, Kyrgyzstan, Moldova, Uzbekistan and Ukraine), Singapore,
Slovakia, Slovenia, South Africa, Sweden, Syria, Thailand,
United Kingdom, USA and the former Yugoslavia.
GOVERNMENT LICENCE FEES
This is not applicable as an IBC is taxed at 10%.
FINANCIAL STATEMENT REQUIREMENTS
An IBC must prepare and submit financial statements to the
Cyprus Taxation Authority and to the Central Bank of Cyprus
annually. There is a requirement to file annual returns.
MEETINGS
Annual general meetings can be held anywhere in the world.
DIRECTORS
The minimum number of directors is one. Directors may be
natural persons or bodies corporate. They can be of any nationality
and need not be resident in Cyprus.
COMPANY SECRETARY
An IBC must appoint a company secretary who can either be
a natural person or a corporate body. It is advisable to appoint
a secretary who is local.
SHAREHOLDERS
The minimum number of shareholders is one.
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