Cyprus company may be used for a wide range of purposes and with correct structure it will provide a tax-efficient way to conduct international business. Also, the Legal system in Cyprus is based on the UK Common Law principles and is inline with EU law and regulations (Cyprus Company Law, Chapter 113, based on the English Act of 1948). The most popular Cyprus company formation is a private limited by shares company.
A limited liability company, allow shareholders to be only liable to the extent of the value of the shares they possess. Cyprus companies are often considered to be the most advantageous option for international business entities, the core activities of which include investing and holding assets. Continue reading in order to find out whether a Cyprus company formation may fulfill your objectives, strategy and corporate goals.
According to Cyprus Law, a Cyprus company must have at least one shareholder. The shareholder of the company may be a physical person (of any nationality) or any legal entity such as another Company, Trust or Foundation. As mentioned above, for the purposes of full confidentiality of the real owner, a nominee shareholder may be appointed, meaning that the shares of the company will be on the name of the nominee shareholder. The shareholder is absolutely secured as at the moment of registration the nominee shareholder delivers to the beneficial owner an open date share transfer document, which is signed sealed and witnessed, allowing the beneficial owner to be in the position to transfer the shares of the company into any name at any moment.
According to Cyprus Law, a Cyprus company must have a secretary. The duties and powers of the secretary are declared by the directors of the company. Secretary’s powers are formal and are restricted to the signing of mostly bank documents when opening accounts, securing loans, filing income tax accounts, keeping the register of members and directors and sending out notices for meetings of the board. Our Firm, may provide you with an individual, acting on behalf of a secretary.
According to Cyprus Law, a Cyprus company must have at least one director. The director is the most important person in the company, who may exercise all the powers as determined in the memorandum and articles of association. For a company to be a Tax Resident in Cyprus and take advantage of benefits offered, the management and control of the company must be in Cyprus. For a foreign businessman, who is looking to form a Cyprus company and be a Tax Resident in Cyprus, one must ensure that the majority of directors/ or the director is residing in Cyprus. A solution for this is an appointment of a Nominee Director – local individual acting on behalf of a director. After signing a trust instrument, the nominee director will be entitled to use their powers as instructed.
According to Cyprus Law, a Cyprus company must have a registered office address. This address is used for the notification of official letters or any other communication purposes with the Registrar of Cyprus Companies, Tax Office, VAT Authority or any other Authority. Please note that this address is not the Business Address of the company and may not be used for invoices, website and other corporate identity items. For both Registered Office and Business Address, our firm offers solutions.