As from 2011 an annual levy of €350 payable to the Registrar of companies is introduced for all companies incorporated in Cyprus For groups of companies, the maximum levy is fixed at €20.000. For 2011, the levy is payable by 31 December 2011. The levy for 2012 onwards is payable by the 30 June of each year. In case the levy is not paid within the prescribed period, if the levy is then paid within two months from the due date, a penalty of 10% is payable which is increased to 30% if the levy is paid within five months from the due date. If the levy is not paid within five months, the Registrar of Companies will remove the company from the registry (something which is expected to restrict the company from filing documents or requesting the certificate from the Registrar’s Office). For reinstatement of the company to the registry the following are due: €500 if the reinstatement is within two years from the strike-off date, or €750 if two years have elapsed from the strike-off date.

The law in Cyprus governing companies is the Companies Law, Chapter 113 of the Statute Laws of Cyprus, which is based on the Companies Act 1948 of the United Kingdom. The constitution of a registered company consists of two documents, the Memorandum of Association and the Articles of Association. Requirements to set up a Cyprus Company: Company name: The name of a company must be approved by the registrar of companies and official receiver in Cyprus before applying to incorporate the company. No identical or similar names to existing companies are permitted as this may cause confusion. Activities of the Company: The main objects/ purpose of the company must be stated in the proposed company’s Memorandum of Association. Share capital: The Cyprus Companies Law provides for a minimum of one share and at least one registered shareholder. The minimum required share capital for a company is €1 which may conveniently be divided into 1 share of €1 each – issued and fully paid upon incorporation. Shareholders: The minimum number of “registered” and/ or “beneficial” shareholders could be one and can either be an individual or a legal corporate entity. Trusts may also be shareholders in a Cyprus company. Trustee shareholders will frequently hold the shares allowing the beneficial owner to retain anonymity. Directors: At least one director is necessary and can be a Cypriot resident individual, a corporate entity, or a non-resident (foreign) individual. It is advisable to appoint local directors if one wishes to have effective management and control in Cyprus rendering the company resident in Cyprus for tax purposes. Secretary: The Company Secretary may be a physical person or corporate entity and is responsible for the preparation and submission of the Annual Returns of the company, to keep the Minute Book and Register of Members, etc. Registered Office: Every company must have a registered office in the country of incorporation. It is the official address of the company where the statutory books, registers, and the seal of the company are kept. Annual Reporting: Companies need to comply with the following filings annually: Submission of the company annual return (HE32 form) to the Registrar of Companies. Submission of audited financial statements to the Income Tax Authorities and to the Registrar of Companies. Submission of provisional tax returns on 31 July in the tax year and final tax returns on 31 December of the year following the end of the tax year to the Income Tax Authorities. Cyprus Companies: Registration Period The affidavit for the formation of a name into a limited liability company in Cyprus is carried out through a lawyer and under normal circumstances the whole procedure, including the approval of the Company’s name, the printing of the Memorandum and Articles of Association, the opening of a bank account up to the time the certificate of incorporation is issued, is completed within 5-10 working days.

A well-connected country ideal for Business Cyprus is a member of the European Community, a member of the United Nations, the Commonwealth, the World Bank, and the International Monetary Fund. Cyprus also has Double Tax Treaties with more than 60 Countries including Russia, the United States, Canada, China, Ukraine, Egypt, and India.

Cyprus became an independent Republic in 1960 The Cyprus government structure is modeled on western democracies in which the individual’s rights are respected and private initiative is given every opportunity and encouragement to develop. The Head of State is the President who is elected by the people for a five-year term of office. The President with the Council of Ministers (which is appointed by the President) is the main executive organ of the Republic. The House of Representatives is the legislative organ of the Republic and is elected also for a 5-year term. A multi-party system operates in Cyprus and the electoral system is based on proportional representation. The Tax benefits offered by the Cyprus tax system provide a great advantage for companies and individuals around the world.

Cyprus ranks among the leading four countries in the world as to the proportion of university graduates to the population A great number of qualified and experienced professional, technical and clerical staff with fluency in foreign languages (mainly English) is always available for employment at reasonable remuneration. Apart from the state-owned elementary, secondary schools and the newly established university, there are many high standard private schools in all cities for the needs of foreign students, offering tuition in English, French, Armenian, Italian, Arabic, and other languages at very reasonable tuition fees. Our team of expert advisors consists of highly trained auditors, accountants, tax consultants, and other specialists. Our clients can benefit from our local labor market knowledge and we can assist > in finding the best available team for their business.

Cyprus’ economy is based on a free enterprise system. The Government’s role has been limited to the regulation, indicative planning, and the provision of public utilities. The tourist service has become the island’s most important sector. Out of the total 2.0 million long-stay tourists who arrive every year in Cyprus, about 60% originate from the European Community. About 49% of the total trade of Cyprus also comes from the European Community.

Types of Cyprus Entities The principal forms and Types of Cyprus Entities and businesses are: Cyprus limited companies Branches of foreign companies Partnerships Sole proprietorship. The following categories of companies are recognized by the Cyprus law: A company limited by guarantee: In such a case the liability of the parties is up to the extent that has been agreed to contribute in case of winding up. This case usually occurs when a Company is formed by nonprofit making concerns The limited company by shares: In this case, the liability of the parties is limited to the nominal value of the shares each person owns. If shares are fully paid there is no further obligation towards the parties. There are two types of limited companies, public companies, and private companies as explained below. Public Companies A public company, according to Company Law, has the power to extend an invitation to the public through a prospectus, to subscribe for its shares or debentures and is allowed a minimum of seven members. Private Companies A private company is prohibited from inviting the public to subscribe for its shares or debentures. It is allowed a minimum of one member and a maximum of fifty. There is also a restriction of the right to transfer its shares.

Cyprus, an island made for Business The island’s excellent infrastructure, English-based legal system, high quality of life, and low cost of living, combined with its well-educated labor force, good industrial relations, and generous tax incentives create an ideal business environment. Its strategic location has been a major factor in shaping its history throughout the centuries and, in recent years, its development into a center for international business. Cyprus offers to entrepreneurs, investors, and ship-owners a unique basket of advantages when conducting their affairs worldwide. Geography and Population Cyprus’ geographical position is a key point to three continents, Europe, Asia, and Africa, and therefore is an ideal center for international business. Cyprus is the third largest Mediterranean island having an area of 3.572 sq. miles (9.251 sq.kms). The population of the island is approximately 850,000 people.

Celebrating International Women's Day at our office was a joyous occasion filled with appreciation and recognition. As a gesture of gratitude, we gifted personalized cards designed by the talented Astero to all the women in our team. Astero's artistic touch adorned each card with this unique drawing, making the occasion even more special. The highlight of the event was a draw, and the lucky winner, Eleftheria, was thrilled to take home the original painting crafted by Astero, adding an extra touch of artistry to our memorable celebration.

The late submission fees for the Annual Returns has been set at €150 (previous fines were set €500) following the decision of the House of Representatives. The Annual Return (form HE32) is a statutory document that Cyprus companies must submit to the Company Registrar each year and it provide the general information of the company such shareholders, directors, company secretary, registered office etc and it is submitted together with the audited financial statements of the previous year. Annual Levy for 2024 Every company that is registered in the Registrar of Companies has an obligation to pay a flat annual fee of €350 by the 30th of June of each year of its operation.  However, for 2024 following an announcement made by Government the annual levy of €350 for the year was abolished.

Following the migration to the «TFA» system, the Employer’s return form (TD 7) from 2024 onwards will be submitted on the «TFA» platform and not «TAXISNET» .  To successfully submit the form the TIC (Tax Identification Code) of all the employees is required so employers should ensure that they have collected this information from all their employees in order to avoid any complications and delays to the submission which may lead to penalties due to late submission. We emphasize that it is the employer’s responsibility to obtain the TIC of the employee.  In the case that the employee does not have a TIC number we note that the process for the application to obtain TIC (Tax Identification Number) has now changed. Before we, as P. Constantinou Ltd, could make the application on behalf of our clients (both companies and individuals) now only the person (individual or responsible for the company) can proceed with the registration through the «TFA Online Portal» (TAX FOR ALL). As a first step you will need to  create an Account on the «TFA Online Portal» and then submit the request for the Electronic Registration in the «Tax Registry». Below you will find the links with all the instructions: To create an account on the «TFA» → Creating an Account at TFA For guide of online Τax registration on the «TFA» → Online Registration Guide In case you will need assistance with the above, either we can arrange through a call or if you want to visit our offices, please note that our fees for this remain at €100 + VAT.

Today, we gathered at the office to celebrate the wonderful Marilia on her special day! Wishing her a day filled with joy, laughter, and all the happiness she deserves. Happy birthday, Marilia!