Cyprus is regarded by many business owners as a very appealing country to place their investments in due to the many fiscal advantages it offers. Although the Cypriot Government encourages foreign investments, it only allows resident representatives, authorized through a power of attorney, to set up branches within the country. It also requires a proof of a registered office.
Although the establishment of a Cypriot branch is the same as the registration procedure for a new company or even a subsidiary, this entity is a very different type of structure. For example, the branch has no legal personality on its own but it is rather an extension of the parent company, which is completely liable for the branch’s debts and obligations but can also manage its profit.
The first step in order to open a branch in Cyprus is to prepare the necessary documents, to notarize the Articles of Association of the company and to set up a bank account on its name. It is also mandatory to obtain a document certifying the capital deposit. The name of the branch, that should be the same as the parent company’s name, must be registered as a trademark
Before starting the branch’s registration procedure with the Official Registrar of Companies in Cyprus, a representative must be appointed through the power of attorney in order to carry on the establishment process. The representative will need to submit an application together with the following documents:
There is a one-stop shop opened at the Ministry of Commerce where a representative of the Registrar of Companies can be reached, however the majority of cases are resolved at the Registry itself. Within two or three days the Registry can issue in the name of the applicant a Certificate of Incorporation for the branch, together with a Certificate of Registration and Certificate of Directors and Shareholders.
With this Certificate of Registration the representative must go to the Ministry of Commerce and submit an application for tax registration. The respective file must also contain a list of all directors’ and shareholders’ names and a detailed description of the parent company’s activities. The branch owner must also simultaneously file for VAT registration. If this company intends to hire employees, it must make sure each of them is registered for health care, pension, insurance and other. Please contact our company formation specialists for more information on each registration procedure.
Although setting up a branch in Cyprus is a simple and straightforward process, the entire incorporation procedure may last up to two weeks, depending on the notary and banks schedules. We are here to provide clients with all necessary information on company formation procedures in Cyprus.