The effect of EU on Cyprus Company Law:
Cyprus has signed the Treaty of Accession on 16th of April 2003 and became a full member of the European Union as from 1st of May 2004.
Consequences of the accession:
Cyprus is bound by Community Legislation relating to social, economic, industrial and environmental matters. Certain types of Community Legislation have direct effect within the Cyprus legal system without a need of further enactment by the House of Representatives. The aim is to harmonize the legislation of Cyprus with the laws of European Union. The major affect of this is that the offshore regime in Cyprus can not exist any longer. The term International Business Companies is currently used for offshore entities. An IBC is subject to certain restrictions implemented from time to time by the Central Bank of Cyprus.
Procedure necessary to be complied with to register an IBC in Cyprus:
The necessary documents for the incorporation of an IBC are the following:
- Passport copy of the beneficial owner.
- A bank reference.
- The address and occupation of the shareholder/ beneficial owner.
- Names of directors and secretary.
- Proposed name for the company.
- The establishment that the shareholders of the company are reputable persons whose aims are legal in accordance with the law. The references of their trustworthiness are required.
Name of the Company.The name of the company has to be approved by the Registrar of Companies This procedure takes 2-4 days if a quick response is required. It is advisable to give a choice of three names in order of preference as each application has to be carefully checked against previously registered names before approval is granted.
- Establishment of Authorized and Issued Share Capital pursuant to Cyprus Company Law.
- Identification of the Company Shareholders.
Submission to the Company Registrar the forms: HE1, HE2, HE3.Where the full disclosure concerning the company’s registered address, directors, secretary is provided. To the effect that the Requirements of Company Law have been complied with.
The complex issue of incorporating an IBC will be handled accordingly by our professional team.
Preparation of Memorandum and Articles of Association.All Cyprus Limited Liability Companies must prepare a Memorandum and Articles of Association. The Memorandum specifies the activities in which the Company may engage. More specifically, the first three main object clauses must include the main proposed activities of the Company. The Articles of Association specifies the rules governing the internal management of the Company. The Memorandum and Articles of Association of the company must be submitted for filing with the Registrar of Companies, in Greek. If it is desirable, this may be translated into English.
The current Legal Fee Schedule:
Total privacy package (excluding audit and accounting fees): €2400. All Included:
- Incorporation Fee for a Cyprus IBC (CY£5.000 share capital)
- Nominee director (free for first year, than €400/year)
- Nominee shareholder (free for first year, than €200/year)
- Fiscal residency certificate
- Bank account with a bank in Cyprus
- Letter of resignation of nominee director
- Share transfer document (signed, undated)
- Rein voicing: €29 / include international fax and mail the invoice (billed monthly)
- Phone / fax set-up: €250 / year + call charges
- Annual fee for Company Registered Office (€250/year)
- Annual Fee for Company Secretary (plus disbursements) (€300/year)
- Annual fee for supplying Nominee Shareholder -if required- (€150/year)
- Annual fee for supplying Nominee Director -if required- (€300/year)
- €600 for 0-50 transactions
- €850 for 51-100 transactions
Copyright © 2003-2006 «Joseph Kokkinos & Co.»
22 Aiantos Street, Ayioi Omoloyitai 1082, P.O. Box 23336, 1681 Nicosia, Cyprus
Telephones: (00 357) 22 31-79-90 (6 lines)