Company formation is a very important process that has to be right the first time. Many are doing business in Cyprus to take advantage of the country’s tax environment but will need guidance and expert knowledge to properly set up the enterprise. There are no requirements regarding the lower and upper limits of the share capital of the Cyprus company, but there are specific recommendations as to what the best amounts are. Going through a financial service to set up the company is generally advisable since they can simplify the process considerably while also taking into account Cypriot law.
Typically, an application form can be easily downloaded and filled in. Of course, the identity of the shareholders involved must be validated by providing a copy of their passports. A notarised and/or apostilled original of the passport must also be served. The name of the proposed company must then be submitted to the Registrar of Companies and the Memorandum and Articles of Association of the Company will then be prepared and submitted. It is recommended that the owners have two or three different names for the company prepared.
This will ultimately produce many documents including all of the Registrar Of Companies documents, the share certificates, the aforementioned memorandum and Articles of Association as well as the Declaration of Trust by the nominee shareholders. A letter of indemnity to the nominee shareholders and directors will be produced along with share transfer details. Getting this right on the first application is a great way to save money and time.
