Purchasing a Company in CyprusUpdated on Thursday 28th April 2016
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To start a business in Cyprus a person has to options: to start a new company, or to buy a pre-registered one. Shelf companies are usually created with the purpose of being sold. Some Cypriot pre-registered or shelf companies have no assets or liabilities and have never been involved in any economic activity, while other may have an economic history.
In Cyprus shelf companies are registered in the name of a nominee shareholder, which is why when buying it, all powers will be transferred to the new owner by notarized power of attorney and a declaration of trust, if all shares remain on the nominee’s name or the shares can be transferred to the new owner.
If you need help in purchasing a ready-made company in Cyprus our law firm offers you the best options and our specialists in corporate law can help you make the right choice and offer you the best assistance in making your purchase.
Compared to starting a new business, taking over a Cypriot shelf company may prove to be more advantageous:
- - because it offers express registration, thus being the fastest way of getting your business up and running when time is an important matter
- - the buyer will have access to its history and decide if it’s the best fit
- - its purchase is done very quickly and its registration can occur in one day, as the company is already created
- -it has a name that has already been registered with the Cyprus Company Registrar
- - it appears as the company has longevity since it was registered to e previous date. In this case vintage companies are better as they are dated back to a longer period of time and they can add prestige to the company’s background.
A particularity of the Cypriot shelf company is that VAT cannot be registered in advance because it first has to reach the minimum threshold of 15, 000 euros.
The key benefits of purchasing a ready-made company in Cyprus is you can run a business with no corporate taxes and also be considered an international company with the rights of an individual, therefore the company will be able to invest, buy and sell real estate, trade portfolio of stocks and conduct all types of legal business activities, as long as they’re not done in Cyprus.