Cyprus Subsidiary Entity Set Up
Cypriot Entity Set Up
When expanding into another country with little familiarity of how incorporation is done, setting up is met with many requirements and complexities. In Cyprus, foreign subsidiary entities act as an extension of the parent company, but enjoys the same company standing as domestic businesses, and are subject to all national laws.
The registration process in Cyprus comes with some variation (depending on the company type), but it is generally straightforward and can be done with little difficulty. Once that is done, however, setting up a subsidiary entity in Cyprus involves a heavy workload.
Processing company and employee taxes, filing accounts, compliance to the local laws, managing the local workforce, and recruitment are all important matters for a business that must be managed effectively, which can eat up your time, money, and resources.
You can lighten this load by partnering with Bradford Jacobs, an Employer of Record (EOR) company. We use our Professional Employer Organisation (PEO) international recruitment specialists to obtain your new personnel, and our EOR experts handle all legal and compliance requirements.
Instead of the costs, delays and complications met going solo, use our services and be up-and-running with a presence in your new territory within days, rather than months
How to set up a Cypriot Subsidiary
Setting up a subsidiary requires these steps:
- Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements.
Common company types include: The Private Limited Liability Company, Public Company Limited by Shares, Company Limited by Guarantee, Partnership Companies, Sole Proprietorship, Branch Office, Representative Office
- Obtain a business address in Cyprus and prepare the documents for registration.
- Obtain a business license with the Trade Register and register with the Customs Authorities (if required).
- Submit the company name for approval from the Registrar of Companies.
- Prepare the appropriate registration documents and have them translated to Greek or English (depending on the document types).
- Open a local bank account in Cyprus and deposit the appropriate share capital.
- Notarize and legalize the registration documents at a notary’s office.
- Register your company at the Registrar of Companies.
- Register with Cyprus’ Inland Revenue Department.
- Register for a VAT Number.
- Public registration of directors and shareholders with the Registrar of Companies.
- Receive Certificates of: Incorporation, Shareholders, Directors and Secretary, and Registered Office Address.
- Register with the employers’ register for social insurance services.
- Publish the incorporation in the official gazette.
Benefits of setting up a Subsidiary in Cyprus
Cyprus is a compelling destination in the Mediterranean for subsidiary establishment and growing a business’ influence. There are also other significant benefits to establishing an entity in Cyprus:
- Subsidiaries in Cyprus are taxed the same as any other resident company.
- Subsidiary entities in Cyprus also benefit from over 60 double taxation treaties, making the country an investor-friendly tax regime with an extensive network.
- Cyprus boasts a strong services sector, including tourism, which contributes to over 80% of the country’s GDP and employs over 70% of its workforce. Other strong sectors include industry, construction, and agriculture.
- Cyprus benefits from one of the lowest tax rates in Europe, with no taxes on dividends.
Cyprus also benefits from low administration and labour costs.
- Cyprus boasts a highly educated workforce with a low-cost business environment.
Cyprus’ well-established infrastructure, with multi-purpose deep-sea ports, international airports, and excellent telecommunications, gives entities a variety of quality logistics options to access markets easily and affordably to the rest of Europe, the Middle East, and Africa.