Steps to Starting a Business in Cyprus: Foreigner’s Guide
Hugge Consult has done a lot to get the bureaucracy out of your way and give your company a quick start. To make it all even easier for you, here is a step-by-step guide to the things you will encounter and some tips on how you can cope.
1. Choose a company name
First of all, you must choose a company name and have your submission agency validated by the Company Registrar - the national agency that registers and supervises companies.
In Cyprus, two companies may not have the same name. A specific article, a business type indicator (Pte Ltd, Limited, etc.) or a generic word such as "corporation" will not distinguish your company name from the existing one if the main nouns match. So search for a unique word or combination of words.
The legal name of your company may be different from its trade name. Just make sure that the trade name you choose doesn't have any copyright or trademark issues - a quick Google search should do the trick.
Tip: If you want to get a name quickly, don't use words like "finance", "bank", "school", "media" or "education". They refer to the types of businesses that are regulated by authorities other than the Registrar of Companies, so your application will be submitted there for review. The company name can still be approved - but it will take a few weeks longer.
2. Choose the business activity type
If you want to start a company, you might already know what you’ll be doing. The Company Registrar wants to know, too, so it’ll ask you to pick and submit an Memorandum of Association. It indicates what your company does and in what field.
Tip: Unless your business will be in a regulated field, you can also submit a generic Memorandum of Association.
3. Put the team together
Shareholders. Both individuals and companies can become shareholders. Foreign citizens and companies can also hold shares.
Directors. Several directors may be appointed, but only ones who can be legally employed in Cyprus. To solve this problem you can appoint a nominee director. He will not be involved in the decision-making process, but will only meet the requirements. It is common practice in Cyprus to use the services of the nominee Secretary. Every company is required to have this position - he or she will monitor changes in your company, compile records and reports to the Government.
4. Choose a Business address
Every Cypriot company must have a business address. It must have a real office mailbox which you check regularly.
Tip: If you do not have a business address, you can use our service.