Step 1: Optimal Business Structure Selection
Before initiating the company formation process, it’s crucial to select the most suitable business entity. Fionza Consultants offers expert guidance to help you make this decision. The most common choice in Cyprus is the limited company, also known as a company limited by shares.
Step 2: Company Name Reservation
Prior to registering your company in Cyprus, Fionza Consultants conducts an electronic name search to confirm the availability of your desired company name through the Business Register and Trademarks Register. Once your company name’s availability is confirmed, we proceed to register it through the e-name approval service provided by the Department of Registrar of Companies and Official Receiver. Your company’s name will be reserved for up to 6 months.
Step 3: Document Preparation and Submission
Upon approval of your company name, Fionza Consultants prepares the necessary corporate documents, including Form HE1 and the Memorandum and Articles of Association. These documents are then submitted for e-company registration with the Department of Registrar of Companies and Official Receiver. Upon successful registration, you will receive the Certificate of Incorporation, Certificate of Shareholders, Certificate of Directors and Secretary, Certificate of the Registered Office Address, and certified copies of the company’s Memorandum and Articles of Association.
Step 4: Corporate Bank Account Opening
Once your company is registered, you can proceed to open a corporate bank account. Fionza Consultants facilitates this process by assisting in document consolidation and liaising with a reputable bank of your choice. Directors and shareholders typically do not need to travel to Cyprus for this purpose. However, if required, we can arrange for a representative to accompany you to the bank meeting, or we can negotiate with the banks for a conference call or waiver. After successful account opening, we will courier the internet banking token and access codes to your preferred address.
Step 5: Tax Registration
Fionza Consultants initiates the process of obtaining a tax number from the Tax Department, which usually takes up to 60 days. We also assist your company in applying for VAT if necessary. Any company with taxable supplies of goods and services exceeding €15,600 in one year must register for VAT. Compliance is crucial, and all Cyprus entities must regularly submit financial reports, annual tax returns, and audited financial statements to the Tax Department. These financial reports need to be translated into Greek and submitted to the Registration Chamber. Additionally, a yearly report detailing key stakeholders of the business must be filed.
Cyprus offers attractive tax rates, including a corporate income tax rate of 12.5%, a VAT rate of 19%, and property transfer tax of up to 8%. There are no taxes on real property, municipal taxes, net wealth, inheritance, or income derived from securities exchanges and dividends. Fionza Consultants continues to assist your company in meeting its annual accounting and tax obligations after tax registration.
Step 6: Social Insurance Services Registration
Every employer is required to register with the Social Insurance Services. Fionza Consultants offers assistance in registering social insurance schemes for your company’s employees.”
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