Initial Registration Fees
The professional fees for a new Cyprus company registration start at € 1724.00.
This price includes:
- Professional fees for the company formation, initial on-boarding compliance procedures (for a typical single-owner ownership structure), drafting of the Memorandum / Articles of Association and the first resolutions, certification of the company documents by lawyer prior to submission to the Registry (mandatory), all initial minutes dealing with the appointment of director/secretary, allocation of shares, documents evidencing the beneficial ownership (€ 416.50).
- Official Cyprus Registry fees for one name approval and for the company registration itself (€ 195.00).
- A set of Registry-certified first Certificates – certificate of incorporation, certificate of registered address, certificate of directors and secretary, certificate of shareholders and share capital (€ 220).
- Registered office address for the first year of operation and annually thereafter (€ 297.50).
- Resident secretary service for the first year of operation and annually thereafter (€ 297.50).
- One-time registration with the Cyprus Tax Department and the online tax filing system. (€ 297.50).
- 19% Cyprus VAT, where applicable.
Additional Costs and Charges
In addition to the above, there will usually be other costs and disbursements.
ATTENTION! Some incorporation agents tend to conceal, delay and mislead about the full extent of additional charges and costs. These are only revealed later, once the client has already committed. Often, such “surprise” items are also overpriced.
In contrast, we believe in honesty and want You to take a fully educated decision.
The following are the most common additional costs, fees and charges (at our rates), explained in detail.
When comparing alternative offers, please make sure to account for all of these.
|Express incorporation fee||€ 200||This is an expedite-registration fee. The Registrar of Companies accepts “skipping the line” – for a fee. Without this surcharge, the standard registration can take up to several weeks.|
|Name-approval fee||€ 50||The Registrar actually charges a fee to officially approve that a desired company name can be used. We must file a specific application for name approval. One name-approval is included in our standard registration price.|
|Annual Levy||€ 350||All Cyprus companies must pay this government fee once a year. The payment deadline is June 30, same for all companies. If a Cyprus company has been registered after June 30, the Annual Levy for its first year will not be charged. Therefore it is a bit more advantageous to register a new Cyprus company during the second half of a year.|
|Compliance fees||€ 0 to € 300||The anti-money laundering laws require that all agents fully identify their new clients and evaluate a lot of information prior to accepting them. This is the most time-consuming part of the entire registration process. It becomes especially burdensome for company registrations involving multiple owners and complex control structures. To compensate for this, it is not uncommon to charge a ‘compliance fee’. The compliance fee will normally be omitted for simple, single-owner structures.|
|Memorandum and Articles of Association in English||€ 240||The Memorandum and Articles of Association for a new Cyprus company are normally drafted and filed in Greek language. An official filing of MAA in English language is possible, for an extra fee. Of course, certified translation of the original Greek documents is a viable alternative – but the cost will be similar.|
|Company stamp||€ 50||A company stamp (seal) is mandatory in Cyprus. As an alterative, You can produce your own stamp and provide it to us.|
|Tax Registration||€ 250||In order to enjoy the many tax benefits available to a Cyprus company, it must be tax-resident in Cyprus. So this one-time registration charge is usually a must.|
|Transfer of shares||€ 280||If you have purchased a ready-made company, You may want to transfer the shares from the initial subscriber onto yourself. Such change of shareholder also needs to be officially filed with the Registry. Some agents will grossly overcharge for this procedure.|
|Apostille legalization of full set of Certificates||€ 150||A full set of official copies of your incorporation documents, with a cover letter certified and legalized by Apostille. Very useful, if the documents must later be presented outside Cyprus.|
|Courier delivery costs||From € 50||Unless You trust the speed and reliability of regular post, sending the corporate file by courier mail is usually a good idea.|
|Value added tax||19%||Most professional services in Cyprus will incur a 19% VAT. This will normally be charged on top of your bill. VAT does not apply to all government fees and to operations with shares.|
Optional Additional Services
These the most common optional services. You may or may not need them, depending on your objectives, company structure and business circumstances.
|Cyprus-resident company director (corporate body)||€ 500||If the new company wants to prove its tax-residence and management in Cyprus, having a Cyprus-resident director is practically a must. Corporate directors are allowed and often used. Annual fee.|
|Cyprus-resident company director (physical person)||€ 1000||Same as above, but provided by a licensed physical individual. A more natural and more elegant setup. Annual fee.|
|Nominee shareholders||€ 300||Company shareholder data is on public registry in Cyprus. This service shields that information. If ownership privacy is not a concern, this service is not needed. Annual fee.|
|Certificate of Good Standing||€ 100||A standard document evidencing continued existence of the company. May be asked from time to time by the bankers. Not needed at time of incorporation.|
|Certificate of Incumbency||€ 100||Also a standard document that describes the structure and functionaries of the company. May be required from time to time in certain business situations.|
|Corporate bank account introduction in Cyprus||€ 500||Assistance with the application and opening of the company bank account in Cyprus. Lots of paperwork, complex forms and tricky questions. Professional assistance is recommended, but by no means obligatory.|
|Bank account signatory||€ 300||For various tax and regulatory reasons, a company bank account should better be operated by the company director. If directorship services are employed, this is a necessary option. Operation of bank accounts by the foreign owner based on a power of attorney is an out-dated practice, which may cause serious personal tax problems.|
|Annual bank introducer fee||€ 150||Applicable only to bank relationships established within Cyprus. Banks require joint compliance of the introducing agent in respect to their customer. Effectively, an annual responsibility fee.|
|VAT Registration||€ 250||This is optional and only necessary for companies that actively trade in goods or services that are subject to Cyprus or EU VAT.|
|Certification by Notary or Certifying Officer||€ 40||Standard first-level certification for various documents, usually for use within Cyprus.|
|Apostille on a certified document||€ 60||Internationally accepted second-tier validation procedure for documents, certified locally. Can be necessary for various documents, when they must be presented abroad.|
|Call and correspondence handling fee||€ 600||Annual fee for a dedicated phone line and personalized handling of calls, electronic and written correspondence. May increase on significant volume. Annual fee.|
|Office rental||€ 3600||Office rental and conference facilities in a co-working environment. May be useful or necessary for actively trading businesses in order to demonstrate proper corporate substance in Cyprus. Annual fee.|
|Web and mail hosting on a dedicated “.cy” domain||€ 300||Internet-based businesses may find it useful to demonstrate online presence in Cyprus, including a national (.cy) domain.|
All active Cyprus companies must keep full books and records, conduct proper accounting, prepare and file tax returns and pay actual tax as and when applicable. Unlike traditional offshore IBC’s, Cyprus companies are, by and large, tax-resident in their country of registration (i.e. Cyprus) and subject to its domestic fiscal regulations. In particular, Cyprus companies must produce audited financial statements on an annual basis.
Fidesta provides qualified accounting and book-keeping services to its corporate clients, which also includes preparation and filing of all applicable tax returns and professional advice on tax matters.
As a general rule, the accounting fees are directly proportionate to the time required for a qualified professional accountant to evaluate, process and book all the actual transactions of a company, all while using the most efficient technology in terms of hardware and software. Therefore, generally speaking, the actual accounting and book-keeping fees will depend on the volume of business, but even more on the complexity and structure of transactions and how tax applies to such transactions. For example, it may be easier to process and book a large volume of similar online sales transactions than to properly assess and book one complex long-term derivatives-trading contract. The following is just a guidance.
|General accounting and book-keeping fees||€ 500||Starting fee, typical for a personal holding company with simple balance sheet structure and minimal transactions. The fees can be significantly higher for actively trading businesses with large volume and/or complex transactions. Actual disbursements and execution fees may be charged extra.|
By definition, annual audit must be conducted by an independent outside auditor, who has the appropriate legal qualifications. Audited financial statements must be prepared for all active Cyprus companies and must be filed on annual basis with the Cyprus registrar of companies and Cyprus tax authority.
As it must be independent, the annual audit is not and can not be conducted by Fidesta. This service is contracted to a reliable third-party audit firm. The following is just a guidance.
|Annual audit fees||€ 750||Typical fee for conducting the annual audit and preparation of audited financial statements for a private holding company with modest amount of transactions. The fees can be significantly higher for complex, actively trading businesses.|
We do not insist on contracting any particular auditors and our clients are free to choose their audit service provider on open market. We do not and will not discriminate against any of our clients based on their decision to outsoure the audit services to a different service provider.
The actual total fees and charges to maintain your Cyprus company can vary significantly, but will generally consist of the components described above. The total maintenance cost will depend on the management model of your Cyprus company, the geography and typology of its business operations and the personal tax circumstances and requirements of company owners.
We will be happy to provide further guidance during a personal call, chat or email.