AVAILABLE TYPES OF LEGAL ORGANISATIONS FOR BUSINESS IN CYPRUS
This jurisdiction offers a wide range of types of business organisations, among which the most popular for foreign investors are:
- Private Ltd or LLC is a closed limited liability company. The minimum authorised capital is 1,700 euros (for companies without an office in Cyprus) or 17,000 euros (if a full-fledged office is established on the island). The minimum number of shareholders is 1, and the maximum is 50.
- PLC or Public Ltd is a public limited company. The minimum registered capital must be at least EUR 25,650. The minimum number of shareholders is seven, and the maximum is unlimited.
- International Trust. This is a popular type of business organisation for this jurisdiction. There are many benefits to trusts. An international trust can only be established by a non-resident of Cyprus in favour of the ultimate beneficiary, also a non-resident of this Republic. In this case, one of the trustees must be a resident of Cyprus.
If desired, it is possible to register another type of company here (partnership, branch of a foreign company, etc.), however, the business structures listed above are the most popular.
SPECIFICS OF COMPANY REGISTRATION IN CYPRUS
Same business registration rules apply to Cypriots, EU residents, and foreign investors. To register a company, it will be necessary to: approve the proposed company name in the Registrar of Companies, then draw up the memorandum of association and articles of association of the company and certify them with a notary, and then transfer the finalized documents to the Registrar of Companies. In most cases, the process of registering a legal entity in Cyprus does not take more than 7 working days.
Opening an account in one of the local banks is obligatory for those who want to start a company. In some cases, founders may be required to be present at the bank in person, as Cyprus, as well as many other European countries, has recently tightened the requirements for opening new accounts.
