Business registration in Cyprus for non-residents: peculiarities, advantages and disadvantages

Many non-residents decide to open a business in Cyprus. But before doing so, it is recommended to analyze all the advantages and disadvantages of such an option. Find out what documents need to be collected and how long it will take to register a company.

Features of opening a business in Cyprus

When deciding to open their own business on the territory of Cyprus, foreigners should be guided by the provisions of the law «On Companies». They must be complied with by all organizations, regardless of the number of employees and the scope of work.

A citizen of any state has the right to register a company in Cyprus, provided that a number of conditions are met. Registration can be done not only in person, but also remotely, for example, through a representative or an intermediary.

The main condition that the following factors should be observed:

• the size of the authorized capital of the organization at least 1 thousand euros;
• the presence of a registered legal address;
• it is necessary to have an approved staff consisting of an accountant, manager and shareholder.

To register your business in Cyprus, you need to submit the appropriate package of documents to the Department of Registration and Liquidation of Organizations. At the stage of filing the documents, a registration procedure fee of €105 is charged.

In addition, foreign entrepreneurs pay an annual tax of 0.6% of the declared capital of the company. For the execution of documents will have to pay about 60 euros.

Companies in Cyprus are registered in the State Register. The future owner of the company must provide information about the founders and copies of their identity cards, certificates of registration. It is also required the charter of the company with an indication of the amount of authorized capital, the scope of work. It is necessary to register a legal address and open a bank account.

The registration procedure lasts from 2 to 4 weeks. It can be done urgently, within 3-6 days, if you pay 100 euros.

Owners of registered companies receive a copy of the Articles of Association, a certificate confirming the fact of registration and several other certificates.

The documentation is issued in hand after payment of the fee, the amount of which is 220 euros. You can immediately order the seal of the organization, it is made according to the approved sample. The owner of the business is obliged to organize a meeting of shareholders within 1.5 years from the date of receipt of papers confirming the fact of registration.

Advantages of opening a business in Cyprus

The main advantages of opening your own business on the territory of Cyprus:

• preferential taxation for non-resident entrepreneurs;
• security of entrepreneurial activity (Cyprus has excellent conditions for this, there is no such concept as raiding there);
• opportunities to enter the international arena, cooperation with companies from other countries (especially from the European Union).

It is much easier to communicate with officials in Cyprus on business issues. Local legislation willingly goes towards foreign entrepreneurs.

Disadvantages of doing business in Cyprus

One of the disadvantages of registering a company in Cyprus is associated with some difficulties arising at the stage of opening a bank account. This process is somewhat stretched in time, it requires translation and forwarding of papers. Another disadvantage is the lack of urgent money transfers, all payment transactions are carefully checked. Also, the jurisdiction of Cyprus is not suitable for blockchain projects.

It is worth opening a business in Cyprus or not, each non-resident decides for himself. All those who want to take a risk must have authorized capital in the amount of 1 thousand euros and comply with the requirements of Cypriot legislation.