OPEN A SUBSIDIARY IN CYPRUS
Introduction to setting up a Cyprus subsidiary
A Cyprus subsidiary is a legal entity regulated by the Cyprus Companies Act. The country is renowned for its low tax and boasts advantages such as an extensive network of double taxation treaties, no withholding tax for non- residents, advanced telecommunications, and efficient banking facilities. As a subsidiary is regarded as a limited liability company, its name should be unique from the parent company and decided before the incorporation process.
What are the main formalities of a Cyprus subsidiary?
- The minimum authorized capital required is STG£ 1.000
- The minimum issued capital is 1 share of STG£ 1
- The Memorandum & Articles of Association of the subsidiary
- Number of shareholders is between one and fifty for a private limited company– for public limited companies there are no restrictions on the number of shareholders
- The resolution of the parent company detailing its decision to form the subsidiary
- A registered office in Cyprus
The documents shown above are required for registration of the subsidiary with the Cypriot Registrar of Companies at the Ministry of Commerce, Industry and Tourism.
What are the accounting requirements of a Cyprus subsidiary?
The Companies Act is in consensus with the International Accounting Standards, requiring financial accounts to be prepared as well as a statutory annual audit.
A Cyprus subsidiary must register with the Inland Revenue in order to obtain a Tax Identification Number (T.I.N.).
Please visit accountancyineurope.com for further information on accountancy services and tax rates in Cyprus.
Subsidiary Formation Packages
Our subsidiary formation packages are second to none and will expertly manage every aspect of your formation. The subsidiary formation services that we offer within these packages include provision of a registered office and registration of VAT, among others. We are extremely experienced in the requirements of Cypriot subsidiaries and will organise your formation process to ensure a smooth and successful set up.