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 others may have an economic history.
Acquiring shelf companies in Cyprus
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.
We also invite you to watch our video on how to buy a company in Cyprus.
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.
Main advantages of a shelf company in Cyprus
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.
Also, shelf companies in Cyprus offer investors the benefit of sparing the time needed to register a new company. The registration procedure of a new business entity in this country is more lengthy than acquiring a shelf company, which allows you to start doing business right away.
How to identify the right company to buy
Companies for sale in Cyprus
are found on domestic websites, local magazines and directories. By using the services of our attorneys in Cyprus
, you can be more knowledgeable about the business which you are about to acquire.
Buying a company in Cyprus is probably a significant investment for you, therefore it is necessary for all the legal and financial aspects connected to such a purchase to be in order.
In making such an endeavor, it will also be necessary for you to find the right people to employ and ideally, a local accountant who understands the domestic market and who can advise you on the business potential and the business history.
Together with your accountant, you will be able to establish the likely competition levels, the real value of the goods which your company will be selling and different ways to improve the company after you have purchased it.
For more details on how to acquire a company in Cyprus, feel free to get in contact with our consultants.