Introduction to setting up a branch in Cyprus
In Cyprus the process of establishing a branch corresponds with the Cyprus Company Act which regulates such procedures. Cyprus is concerned about its progress as an international business hub and as a result administrative procedures have been simplified, making setting up a Cyprus branch easier.
What are the accounting requirements for a Cyprus Branch?
A Cyprus branch is required to annually file VAT and tax accounts with the Cyprus Tax Department. No audit is required.
Taxation for Cyprus branches whose management and control is in Cyprus, is the same as international business companies i.e. 10% on the net profit. If the management and control of the branch is outside of Cyprus, all profits from the branch are exempt from tax.
International business branches are granted the same advantages as international business companies, i.e. low corporate tax rates, no capital gains tax, no withholding tax.
What are the formalities regarding Cyprus branches?
– A certified copy of the overseas corporation charter
– Memorandum and Articles of Association of the parent company
– A copy of the parent company’s Certificate of Good Standing
– The details of directors and secretary of the parent company
– The name and address of a Cyprus branch representative authorised to accept service of notices to the branch
– A registered Cyprus office address
These documents must be submitted to the national Registrar of Companies within one month of the branch being set up, in order for the branch to be registered.
All documents are required to be notarised, apostilled and translated into Greek by an official translator.
What office facilities are available when registering a branch?
There are two main types of office available in Cyprus:
– Virtual offices provide off-site communication. Virtual offices in Cyprus include a central location in Nicosia, telephone, fax and mail forwarding facilities
– Serviced offices include all necessary business services and are ready for immediate occupation
We will handle every aspect of the branch formation for you. Using our expert knowledge we can offer a branch formation package in which we take care of branch registration, issue of the certificates of registration, local directors, local representative and place of business in Cyprus, tax registration, VAT registration, and translation of documents into Greek.
Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple branches. The benefits for establishing multiple branches include further increased exposure and global presence, and we can organise everything for you.