As of the 1st of August 2022 it is possible to file an application with the Registrar of Companies in the Republic of Cyprus and request the issuance of a Beneficial Ownership Report. This report shall outline taking into consideration any trust deeds in place the holding structure of a company and its beneficial owners.

Interested parties may submit the relevant application via the Registrar of Companies platform or may contact us for assistance.

Please note that all Beneficial Ownership Report applications are currently only submitted manually at the cashier’s office for the time being.

Fundamental amendments brought by European and domestic legislation have transformed the corporate industry dramatically over the last years as it has strengthened the maintenance and account opening procedures for individuals and corporate accounts as a means to significantly minimising money laundering and terrorist financing activities.

Banking institutions in Cyprus are reluctant to take on any significant risk when it comes to new clients and as a general rule of thumb avoid dealings with high risk companies. To that extent account opening applications forms are becoming increasingly demanding and require a level of expertise when navigating and preparing them correctly.

We undertake to review the individual or corporate entity and all associated counterparties leading down to the Ultimate Beneficial Owner (UBO) running our own assessment formula where we initially advice on the success rate of such an application. We request from the clients all the necessary supporting documents and information which shall be identified below to prepare and file the form on behalf of the client reducing thus the hustle and stress associated in such tasks.

As a result of our long lasting relationship with financial institutions in Cyprus we are able to overcome certain issues that may arise provided that the company or individual does not fail our risk assessment policies.

For any individual that wishes to set up a bank account in Cyprus the following documents must be submitted:

• Recent bill of utility of the last 3 (three) months (electricity bill, water bill etc.).
• Reference letter from their former or existing Bank or Financial Institution not older than 3 months.
• An updated and comprehensive CV.
• Scanned coloured copy of Passport.
• Supporting Documentation in relation to their annual income (such as tax declaration, income, any profits or dividends, any company relationships, etc.).
• Title deeds, dividends, relationship with companies and any other source of income that to establish the value and source wealth.

For any company who wishes to set up a bank account in Cyprus the following documents must be submitted:

• A business profile of the company
• Certificates of Directors, Secretary and Shareholders
• Certificate of Good standing for companies is older than 2 (two) year
• Certificates of Incumbency
• Certificate of Incorporation
• Certificate of Registered office Address
• Memorandum and Articles of Association,
• Corporate structure that clearly shows the Ultimate Beneficial Owner/s (UBOs) interests/benefits.
• Audited Accounts of the company where applicable.

Members’ Certificates

Any physical person who is related to the company such as UBOs, shareholders, Directors, Secretary, signatories, cardholders shall need to provide the same documents as above for an individual account opening. A meeting must also take place with the company’s UBOs.

(IMPORTANT NOTE: all documents regarding the Corporate and Personal account opening & Account maintenance in Cyprus must be in Greek or English, if not they must be officially translated.)

One of the principal question clients ask before deciding in which jurisdiction to set up their business is the cost of registration and running of a company.

This article focuses solemnly in the Jurisdiction of Cyprus.

The fees involved when setting up a Cyprus company:

1. The registration or set up fee
2. The annual fees for nominee services
3. The accounting & auditing fee
4. The annual expenses payable to the Registrar of Companies

1. The registration or set up fee

Our fees for incorporating a Cyprus company start at €1.500 plus 19% VAT if applicable. These fees include the incorporation costs and certified documents issued by the Registrar of Companies (ROC).

2. The annual fees for nominee services

Annual fees include the fees for the services of nominees, secretary and registered office. We advise all clients that are abroad to appoint our law firm as your secretary as we will be able to make any changes in the ROC on your behalf in a very timely and cost-effective manner. Fees available upon request.

3. The accounting & auditing fees

It is compulsory to have hire Accounting & auditing services for your company. The fees for such services vary substantially depending on the following factors:

1. the number of transactions the company executes each month/year
2. the size of the firm you decide to hire

A Cyprus company needs to register with the Inland Revenue Office and get a tax number. From then on it has to file audited accounts every year and pay tax, if appropriate.

Some companies are also registered with the VAT Department and get a VAT number. In such case, they have to file VAT return every three months.

Auditing & Income Tax (preparation of IR4) fees start at €1.500 plus VAT per year. Moreover, if the company wishes to outsource the accounting, payroll and VAT services fees start at €250 per month.

Please note that the above fees vary and increase depending on the requirements of each company.

4. The annual levy payable to the ROC

Annual Return

Each year a company has to file an annual return (annual report) with the ROC known as HE 32 which records the changes that took place in the company during the year. With this report the financial accounts of the company and all relevant minutes of the company need to be submitted at the ROC.

Our fees for the preparation and submission of annual report to the ROC is €180 plus VAT.

Special Government Levy

All companies registered in the Republic of Cyprus must pay at the ROC an annual levy of €350. For companies that fall within a group the total amount is capped at €20.000. Non-compliance may result in penalties and eventually striking off.

Other fees

If you want to open a corporate bank account or require other administrative or legal services these shall be agreed separately.

TONNAGE TAX RATES FOR QUALIFYING
OWNERS AND CHARTERERS OF CYPRUS AND FOREIGN SHIPS

Any residual tonnage of less than 100 units of net tonnage shall be charged proportionally.

Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel:

TONNAGE TAX RATES FOR QUALIFYING
SHIP MANAGERS OF CYPRUS AND FOREIGN SHIPS

Any residual tonnage of less than 400 units of net tonnage shall be charged proportionally.

Sample calculation of the annual tonnage tax for a 19.538 net tonnage vessel: