In Cyprus, one can either create a new company from scratch or purchase an existing one that has already been registered. Typically, shelf companies are founded to be sold. While some offshore or pre-registered Cypriot firms may not have any assets or obligations and have never engaged in any economic activity, others might. Because it must first meet the minimal threshold of 15,000 euros, VAT cannot be filed in advance, which is a unique characteristic of the Cypriot shelf company. A business can, however, register for EORI in Cyprus after registering for VAT.
Cyprus shelf company acquisitions
In Cyprus, a legal business entity that has been incorporated but has not yet engaged in any commercial activity is known as a shelf company or a ready-made firm. In essence, it is available for purchase by a business person who wishes to immediately begin doing business in Cyprus. In Cyprus, shelf companies are registered in the name of a nominee shareholder; therefore, upon purchase, if all shares are still registered in the nominee’s name or if the shares can be transferred to the new owner, all powers will be transferred to the new owner by a notarized power of attorney and a declaration of trust.
Taking over a Cypriot shelf company may be more cost-effective than creating a new business due to the following reasons:
- It enables express registration, making it the quickest approach to starting your business.
- The purchaser will have access to its past and be able to judge whether it is the greatest fit.
- The purchase and registration processes can be completed in a single day.
- The Cyprus company registrar has already recorded its name under that name.
Acquisition of a ready-made business in Cyprus (fees, requirements)
There are numerous official websites or service providers that sell pre-made Cypriot businesses online. These might be LPs, LLCs, trusts, or other business entities. The amount of capital required varies depending on the size or scope of a company as well as its age, ranging from a few hundred to several thousand. Such services cover all required paperwork completion and HMRC-related expenses. The company may be purchased with a variety of licenses, including those for insurance, banking, or other specialized services, tax registration, bank accounts, a statement of financial health, the address of the company’s principal office, two fictitious shareholders, two fictitious directors, a secretary, and an apostille power of attorney. The future owner must request the aforementioned extras, pay for them, and take into account the time limits necessary for the company’s buying procedure if the overall price of the business does not always contain them.
When buying a business, a person who lives elsewhere than in Cyprus can arrange for all maintenance and operational tasks to be completed by email, fax, or courier.
You should be aware of the following requirements if you want to buy a ready-made Cypriot business:
- A nominee shareholder and nominee director must be named before the transaction may be completed.
- The name of the business must be selected from the list provided by the service providers.
- The person buying the business must sign a set of corporate paperwork.
- For a while, a business needs financial backing to operate.
- In a maximum of two days, you can receive a VAT registration number.
- One can open a bank account in no more than 5-7 days.
- A maximum of 3–4 days pass before the Cyprus Registrar of Companies approves the company’s new name.
- It should take no longer than 7–10 days to add new directors to the paperwork.