Things important to know before opening a company in Cyprus
Today we will share the nuances for those who are considering opening a company on the island. What is important to know and what requirements does this process involve?
To begin with, let’s talk about the types and forms of business:
Choosing the type of legal entity for your business depends on the tasks you plan to solve. There are many organizational and legal forms available here, but we will list the most popular among foreign entrepreneurs:
Private limited liability company (LTD).
Such business structures must have a director, at least 1 shareholder (the number of shareholders should not exceed 50) and at least one secretary.
The founders and secretaries of a company with a limited liability company can be both individuals and legal entities. persons, both Cypriots and foreigners. All companies with a limited liability company must have an operating office in Cyprus.
Public limited company.
In this format there must be at least: 2 directors and 7 shareholders.
The minimum authorized capital is €25,000. It is possible to issue bearer shares; accordingly, public companies can sell their shares on the stock market. Shareholders’ liability is limited to the actual value of the shares they own.
Individual entrepreneurship
A business owned and operated by one individual. To do this, foreign nationals will need a permanent residence permit if they come from a non-EU country. (you must live in Cyprus for at least 183 days a year).
There is no authorized capital and shareholders. The owner is entitled to receive all profits.
Branch of a foreign company.
The form is intended for locating a branch of a foreign company in Cyprus. A separate legal entity is not created. The parent company bears full responsibility.
The company registration process takes about 1.5 months. But to ensure that you go this route, we recommend that you seek consulting services.
Our employees are ready to advise you, answer all your questions and help you comply with legal requirements, which will greatly facilitate the process of registering a business.