REGISTERING A CYPRUS COMPANY INVOLVES THE FOLLOWING CATEGORIES OF FEES
Registering a Cyprus Company involves Legal Fees for setting up the Company, Annual Service Fees for maintaining the company, Accounting Fees, Annual Government Levy and Fees for Filing the annual Return with the Registrar of Cyprus Companies.
Legal Fees for Registering the Cyprus Company
The fees for registering the Cyprus Company are approximately €1300 plus VAT for a company with nominal share capital of €1,000 (one thousand) euros. Additional fees of approximately €300 plus VAT are payable in case the client wishes that the corporate documents be translated to English.
Note that extra fees are payable in case the Client wishes for specific clauses and review on the Memorandum or Articles of Association of the Company – although this is usually not required unless the company will engage in particular kinds of trade (for example a company to be registered with the Cyprus Securities and Exchange Commission or a company the articles of which require specific clauses to be present in its Corporate Documents).
Annual Service Fees for the Registered Cyprus Company
Usually, when incorporating a one-person company, annual service fees are not payable. That is because the one-person company will run all of the company’s affairs.
In some cases the members of the company may wish to purchase specific services for their company. The services that may be required by a Cyprus company are the following:
As mentioned earlier, it is a legal requirement for every company in Cyprus to appoint accountants and auditors. It is also a legal requirement that a company must submit audited accounts every year. Furthermore, every company must keep books and prepare financial reports annually approved by an auditor. Therefore, accounting fees are payable by a Cyprus Company yearly.
The accounting fees for a newly set up company will usually depend on a number of factors. For example, whether the company is registered with the VAT Authorities, the type of accounting firm as well as the number of transactions it executes during the year.
Accounting fees will also cover a once off fee for registering the company with the VAT Authorities. There is a requirement that within 60 days of incorporation a tax identification number (TIC) is obtained. Furthermore, all invoices and expenses must be maintained by the company and they must be submitted quarterly to the VAT Authorities.
Finally, in cases, where a company employs salaried employees, it must make provisions for social insurance contributions, and other taxes payable by the employees such as PAYE contributions.
We collaborate with a number of accountants and from our experience, the fees charged for a newly registered company start from €1,000 plus VAT.
Annual Government Levy
It is a legal requirement for every Cyprus Company to pay a government levy of €350. This is payable by the 30th of June each year. In case that a company is late in paying this levy, then a penalty of 10% is imposed if paid until the 31st of August and 30% in case this is paid by the end of the year.
In case the fee is not paid, then the Registrar of Cyprus Companies may strike of the company from the registry.
We note that in case of a group of companies, the maximum fee payable for the whole group is capped to €20,000.
Fees for Filing the Annual Return with the Registrar of Cyprus Companies
Every year, a company must file its Annual Return. The costs for filing this at the Registrar of Cyprus Companies is approximately €100 plus a fee charged for filing.
Fees for Opening a Bank Account
In many instances, the incorporators of the company will wish to open a bank account. In such cases, banks must perform KYC on the clients much like the KYC performed by the lawyers. In order to assist the client with the KYC and all the requirements for opening a corporate bank account, there are fees involved which are however small.