Cyprus Company Formation
Opening a company in Cyprus
Why start a company in Cyprus? What are the advantages in the state of Cyprus?
Cyprus, a country that is part of the European Union, is a convenient solution for many entrepreneurs.
The local currency is the European Union Euro (EUR), and living is cheap in the country.
Cyprus is a very convenient gateway to the European market, with cheap maintenance costs and a local market that understands the English language very well.
Purchase of real estate assets for investment
In Cyprus, it is very common to purchase properties in the name of a local limited liability company. One of the reasons is that the property can be sold easily, by transferring ownership to the company instead of transferring ownership to the property itself.
A financial company in Cyprus
In Cyprus there is a very favorable regulation for financial activity. Anyone interested in engaging in the activity of marketing financial products such as forex, binary options, securities, etc., is required to obtain a license from the state. Such a license is called a "financial license". Such a license is not specific to Cyprus but to every country in the world today. What is special in Cyprus, is that the conditions for obtaining this license in Cyprus are relatively easy, and the costs are very cheap compared to other countries.
This makes Cyprus an excellent solution for those interested in marketing financial products to any of the European countries. And why is that? Because in Europe there is a concept called "passporting", which means that any license or permit issued in country A can also be used in other countries in the Union, without limitation. This option gives a special advantage to countries where the requirements for issuing such licenses are relatively low compared to other countries. And Cyprus (and Lithuania, by the way) are very attractive in this regard, because the financial licenses that can be issued there are among the cheapest and easiest in Europe.
The process of opening a company in Cyprus
Opening a company in Cyprus begins with the signing of a notarial power of attorney to open a company by a local agent. The document is then sent with a courier urgently and the company is established.
In Cyprus there is no need for a local director or a local shareholder. In Cyprus you also do not need any European citizenship to open a company. You can open a Cypriot company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.
After submitting the documents, the company is opened and a "certificate of registration" (Cypriot certificate of incorporation) is issued, like this one we of a company we opened:
Opening a bank account in Cyprus - current account for the company
After opening the company, it is time to open a current bank account in Cyprus for the company.
Usually the entire process of opening the account is done remotely, without physically flying to Cyprus. However, this is a European bank account for all intents and purposes. In some cases, it is not possible to open an account remotely and it is required to physically arrive in the country. In addition to this, there is an alternative, which is opening an Internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks in Europe that would be happy to accept your company in Cyprus as a client.
VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company with VAT will also be carried out. The company will receive a VAT number and you can start trading, purchase real estate, issue a financial license, etc.
EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.
Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.
However, all costs in Cyprus are low due to the relatively cheap cost of living.
Tax in Cyprus
The corporate tax in Cyprus has been at a very low rate of only 12.5% for years.
For sales to the local Cypriot market, the VAT is 19%.
Questions and answers
Question: Is it necessary to physically fly to Cyprus to open a company in Cyprus?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Cyprus. There is no need to fly to Cyprus to open the company, nor the company's bank account. The entire process of opening the company and the company's bank account is carried out remotely without setting foot on Cyprus soil.
Question: Who provides the local address for the company in New Cyprus?
Answer: We will provide the local address.
Question: How can I find a good accountant who can take care of our new Cyprus company?
Answer: We will connect you with a local accountant.
Question: If I want to come to Cyprus to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find which branch will accept you and open a bank account for your new company in Cyprus.
Question: What type of company in Cyprus should I open?
Answer: There is only one type of limited liability company in Cyprus, so there is no reason to hesitate.
Question: Do you need a European passport to open a company in Cyprus?
Answer: There is no need for a European passport. We can open a company in Cyprus for any foreign citizen as long as he has a valid passport.
Question: How long does it take to open a company in Cyprus?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 1-3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.
Question: Is it possible to open a company in Cyprus for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Cyprus for a person with American citizenship or a person living in the USA.
Apparently it seems trivial that a person with ties to the USA could open a company in Cyprus, but we assure you that this is not the case. Today, all banks in Cyprus without exception refuse to open an account for a new Cypriot company if its owner has any ties to the USA. Therefore, we are probably the only ones, and certainly one of the few in Cyprus, who know how to open a company in Cyprus for a person with American citizenship or who lives in the USA.
Question: How much does it cost to open a company in Cyprus?
Answer: Click here to contact us and get an up-to-date quote for free!