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Map of Cyprus National Flag

Land Area: 9241 Square kms

Coastline: 648 kms

Capital: Nicosia

Population: 1.116 million

Climate:Cyprus has a Subtropical climate - Mediterranean and Semi-arid type (in the north-eastern part of island) - according to Köppen climate classification signes Csa and Bsh,[1][2] with very mild winters (on the coast) and warm to hot summers. Snow is possible only in the Troodos mountains in the central part of island. Rain occurs mainly in winter, with summer being generally dry.

GDP: 24.014 billions USD

Time Zone: GMT + 2:00

Literacy: The literacy rate stands at 97.6%, with 98.9% for males and 96.3% for females.

Environmental- Current Issues: Water resource problems, Water pollution from sewage and industrial wastes, coastal degradation, & loss of wildlife habitats from urbanization.

Environment – International Agreements:

  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
  • Convention on Biological Diversity
  • Convention on Long-Range Transboundary Air Pollution
  • Convention on Wetlands of International Importance Especially as Waterfowl Habitat (Ramsar)
  • Convention on the International Trade in Endangered Species of Wild Flora and Fauna (CITES)
  • Convention on the Prevention of Marine Pollution by Dumping Wastes and Other Matter (London Convention)
  • International Convention for the Regulation of Whaling
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change
  • Montreal Protocol on Substances That Deplete the Ozone Layer
  • Protocol of 1978 Relating to the International Convention for the Prevention of Pollution From Ships, 1973 (MARPOL)
  • Protocol to the 1979 Convention on Long-Range Transboundary Air Pollution Concerning the Control of Emissions of Nitrogen Oxides or Their Transboundary Fluxes
  • Protocol to the 1979 Convention on Long-Range Transboundary Air Pollution on Further Reduction of Sulphur Emissions
  • Protocol to the 1979 Convention on Long-Range Transboundary Air Pollution on Persistent Organic Pollutants
  • Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space, and Under Water
  • United Nations Convention on the Law of the Sea (LOS)
  • United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa
  • United Nations Framework Convention on Climate Change

International Airports: There are Seven Airports in Cyprus, of which two are international and other five are domestic airports. Nicosia International Airport & Paphos International Airport are the two international airport in Cyprus.

Ports of Entry: Ports of entry in Cyprus are Limassol Port, Larnaca Port, Paphos Port and Latchi Port.

  • Financial Year: January 1 to December 31
  • Tax rates for Year 2012-13

Nature of Assessee Taxable Income (€) Rate of Tax
Individual
Up to 19,500 0 %
19501-28000 20 %
28001-36300 25 %
36301-60000 30 %
60001 and over 35 %
Company Any Income 10%

Procedure to Set up a Company in Cyprus

Registering a company

The fast and simple registration procedure is the same for all types of business.

Business registration

The first step is to send an application to the Registrar of Companies for approval of the company name. This costs either €8.54 or €25.63 for a fast-track service

Registrar of Companies and Official Receiver

The business's relevant documents are then sent to the Registrar of Companies. Business registration documents, e.g. articles of association, are submitted after being verified by a member of the Cyprus Bar Association. The association provides a full list of its members on its website.

Cyprus Bar Association

Items such as articles of association may be submitted in any European language along with a sworn statement confirming that it is an accurate translation of the Greek original.

Social insurance registration

Any company employing one or more persons must be registered under the National Insurance Scheme. This can be done by completing the following forms available online, at National Insurance District Offices and Citizen Service Centres.

These forms must be submitted to National Insurance District Offices or Citizen Service Centres within one month after the recruitment of a new employee.

Tax registration

Any company or person operating in Cyprus must become registered to the Taxpayers Register of the Inland Revenue Department as soon as possible. This can be done by submitting the relevant forms either to the Income Tax District Offices or to the Ministry ofCommerce, Industry and Tourism's One Stop Shop for setting up a business. Thecompany will then receive the relevant Tax Identification Number (T.I.N).

With regard to VAT, anyone supplying goods or providing services, involved in intra-community acquisitions or distance selling in Cyprus must enrol on the VAT Register by submitting the relevant application to the appropriate VAT District Office or through the One Stop Shop for setting up a business of the Department of the Registrar ofCompanies and Official Receiver before the end of the thirty-day period during which it is due.

Issues after Registration

All companies must Register with the Inland Revenue Department and obtain a tax identification number. They may also need to register for VAT, as well as with the employers’ register of the social insurance services. Even if having to register for all three above, the process should take approximately 1-2 working days, provided that the applicant submits the necessary information and documentation without errors or omissions.

The applicant also needs to consider whether he needs “retainer services”. Once a company is registered, lawyers and law firms can offer a variety of additional services relating to the 4 maintenance and administration of the new entity. These include opening and maintaining the company’s bank account, dealing with legal administration, such as convening board meetings and drafting minutes, preparing and sending annual returns and other documents to the Registrar, and even accounting and auditing services through their liaisons with audit and accountancy firms. The client can choose and configure the retainer services that meet his needs and agree the fee with his lawyer.

Statutory obligations of a Cyprus company with respect to the audit of its financial statements

"A Cyprus company has the following two statutory obligations with respect to the audit of its financial statements:

1. A company must submit its audited financial statements to the Registrar of Companies in Greek, which is the official language in Cyprus. These financial statements must be prepared on an annual basis, except for the first financial statements of a company which can cover a period of up to eighteen months from the date of the company’s incorporation. In the case a company has subsidiaries and it has no exception from consolidation either from the International Financial Reporting Standards or from the Cyprus Companies Law, Cap. 113, Section 142, then it is required to file with Registrar of Companies its consolidated financial statements.

2. A company must submit its Annual Tax Return to the Inland Revenue authorities on a calendar year. Annual Tax Returns must be supported by the audited separate (non-consolidated) financial statements of the company. In the case of a company without subsidiaries or of a company with subsidiaries that falls within the non-consolidation criteria, a single audited set of financial statements will suffice for both statutory obligations. However, where consolidation is required, then a company should prepare a set of consolidated financial statements for the purposes of the Registrar of Companies and a set of separate (non-consolidated) financial statements for the purposes of Inland Revenue. The financial statements for both the above statutory purposes should be prepared in accordance with International Financial Reporting Standards as adopted by the European Union and in accordance with the requirements of the “Cyprus Companies Law, Cap. 113."

What MNRS Offers

MNRS offers credible services relating to setting up of business in Cyprus like:

  • Registration of LLP, Company
  • Purchase of Shelf Cyprus Company
  • Nominee Director (Natural Person) Cyprus Resident / Non-Resident
  • Nominee Shareholders (Natural Person) Cyprus Resident / Non-Resident
  • Secretarial Services including changes in LLP, Company Structure
  • Bank Account opening and providing nominee bank signatory
  • Virtual office facility (Space for meetings, Fax, Internet, reception, file storage etc.) in various cities of Cyprus .
  • Dissolution of LLP, Company
  • Takeover or sale of existing business. (Liaison, due diligence, business valuation etc.)
 
Contact for this Service
CA Neeraj Kumar Agarwal
Partner
e-mail: Neeraj@mnrsindia.com
CS Shreyansh Jain
e-mail: Services@mnrsindia.com
Tel: +91 (11) 46502975
Telefax: +91(11) 29812975
Mob: 9313010417
     
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