Cyprus provides a stable economic environment, in which many fields have developed at a fast pace. In 2016, many industries, such as tourism of financial services, registered very good results and businessmen who want to establish a business presence on the local market can register a representative office, which can be of use on a long term .
Although the representative office can’t proceed to any commercial activities, foreign businessmen can benefit from many other activities which can be carried out through this type of business representation. Our team of Cypriot lawyerscan provide legal assistance for the incorporation of a representative office in Cyprus.
What is a representative office?
A representative office in Cyprus is set up to perform various activities in the benefit of the parent company, but it cannot undertake any commercial operations. The main purpose of a representative office (also known as a liaison office) is to establish a business presence on the local market, by gathering relevant information useful for the parent company, which can be set up in another country.
A liaison office can act as the intermediary between othercompanies in Cypruswhich are or can become business partners of the parent company. As a general rule, the liaison office can start numerous operations which do not generate revenues; our team of Cypriot attorneys can offer more details on this matter.
The video below presents more details on the representative office in Cyprus:
Functions of a representative office in Cyprus
A representative office in Cyprus is an entity entirely different from a Cypriot branch or subsidiary. And that is because it is not independent of the parent-company and it carries some important limitations, such as the fact that it cannot trade goods or offer services.
The only function of a representative office in this country is to intermediate business relationships between the parent-company and its clients in Cyprus. Therefore, this type of business entity is mainly utilized for marketing services. Our laywers in Cyprus can provide further information related to this subject.
Registration procedure of a representative office in Cyprus
In order to register a representative office, the registration procedure is similar to that of other European jurisdictions. The main steps of this procedure are:
•Obtaining a special license;
•Register as a tax payer;
•Subscribe to all the relevant government agencies;
•Gather the relevant documentation: this documentation is comprised of:
oa standard application;
olegalized copies of the articles of incorporation and certificate of incorporation;
olegalized letter of the representative office chief;
omemorandum of association;
oproof of payment of the registration fee.
The above-mentioned documents can be rejected in case they are not complete, if they contain false information or in case the activities of the representative office in Cyprus do not comply with the local legislation. Our lawyers in Cyprus may provide further details regarding this matter.
Activities of Cypriot representative office
Although the office will not have any commercial activities, it will be necessary to register it with the relevant authorities, including for taxation purposes.