There are many different kinds of businesses that can be established in Cyprus. The sole proprietorship is the simplest of these business structures, while private and public limited liability companies are more complicated.
Because it is not limited to only citizens of the EU or Croatia, anyone who chooses to conduct business in Cyprus can create a limited liability company (LTD) there. Since it is not restricted to only inhabitants of those two countries, Croatia and the EU, Because of this, the limited liability company (LTD) structure in Cyprus has gained a lot of favor among both domestic and foreign investors.
A company must be registered with the registry, as this function is delegated to the Cypriot registrar of companies, who is responsible for the registration of legal organizations such as limited liability companies. An application for the company name, as well as the compilation and submission of several needed papers, must be made by the entrepreneur or investor.
Types of private limited companies
The characteristics of a private limited liability corporation determine its category, and the legislation of the country recognizes two distinct categories for such businesses. These categories are as follows:
Private company limited by guarantee
This form can either include shares or not include shares.
Private company limited by shares
This form can either include shares or not include shares.
Requirements
When it comes to a private limited liability corporation, there is no mandated necessity for a minimum amount of share capital to be maintained. Shareholders of a company in Cyprus are required to provide personal information such as nationality, contact information, or the number of shares they own in the company. The number of shareholders in a company in Cyprus is regulated by the Cyprus company act, which requires there to be at least one member. A company can have up to fifty members. There are also no restrictions placed on the shareholders or founders of this sort of company regarding their nationality.
Steps for incorporation of a PLC
The most important advantage is that it has one of the simplest methods for incorporating a firm, which is made possible by the fact that its need for registration is simple to fulfill. The following procedures need to be completed to successfully register a PLC:
- Check for availability and reserve the business or trading name (make sure it is unique)
- Prepare all documents for incorporation such as the company’s memorandum and article of association
- Create a corporate bank account with any local bank and deposit the share capital
- File the necessary documents for incorporation into the company’s register
- The business is required to have a registered office address
- Register for taxation and VAT with the Tax Department in Cyprus or Inland revenue authorities
- Ensure the establishment has a legal adviser to help with the registration
- Continue audited financial statements, and annual returns, and authorized and issued share capital modifications
Articles of association
The creation of Cypriot plc may largely be attributed to the contents of this primary text. For the Trade Register to acknowledge and register the company, the paperwork must contain certain information. The articles of association are required to contain all of the following particulars and pieces of information:
- Details of shareholders (names, residential address, and nationality)
- Details of the director(s) and secretary
- Information on the share capital of the company and division among stakeholders
- The legal address of the establishment, including registration and termination dates if appropriate
- Special clauses relating to the alteration of the share capital and appointment of directors
