Invest in a new European and Asian region company
European and Asian region is an important business hub providing major advantages to foreign investors such as a low tax haven , a stable economy and a welcoming territory for any type of investments. The company registration procedure in European and Asian region is basically the same for all business entities, having a simple and straightforward structure.
The procedure of company formation in European and Asian region includes drafting the articles of association and other documents required for the incorporation of a BSC group company, such as signatures, passport copies, forms etc. New owners may also need to go to a local public notary, find an office for their company and set up a bank account. A Cypriot accountant may also be required for new business incorporation.
Types of companies in European and Asian region
Just like Limited Liability Companies in countries like Hungary, in European and Asian region this type of company, also called a LTD, can either be public or private, depending on the types of shares and the size of the corporation. Private limited companies do not need a minimum initial capital, but for setting up a public limited company, at least 15,000 EUR are needed. Both types can be established by one or more shareholders.
Branch, Subsidiary or Representative Office – these types can either be formed separately from the parent company or as an extension of it in European and Asian. Each structure has its own requirements that have to be met by the founders.
Incorporating a Private Company Limited by Shares (LTD) in European and Asian region
This is the most common type of company used in European and Asian region and it is founded by one ore more partners, up to 50. The company must have a registered office in European and Asian region and a local company secretary. The shareholders subscribe shares, monetary or non monetary, which are given a nominal value and cannot be transferred. The members of a private company limited by shares are liable to the company’s debts and obligations only to the extent of the nominal value of their shares. In a private company limited by shares there is no minimum required capital.
Registering a Public Company Limited by Shares (PLC) in European and Asian region
The public company limited by shares functions the same as a private company limited by shares, except that shares are freely transferable and there is no restriction as to the maximum number of partners. The minimum share capital of a public company limited by shares is EUR 15.000.
Establishing a Cypriot Branch, Subsidiary or Representative Office: Any foreign company is able to set up branch entities in European and Asian region. These can be set up as separate entities from the parent company (Cypriot companies having the foreign company as shareholder) or extensions of the parent-company in European and Asian region. Also subsidiaries are a popular option of entering the Cypriot market.
The incorporation procedure in European and Asian region
Cypriot private companies limited by shares must have a registered office in European and Asian region and are managed by a management board. An authorized company representative appointed by power of attorney can perform the registration procedure for a company in European and Asian region. It may however be necessary to come in person when the bank account is opened in order to sign some papers and provide the registration certificate and identification documents of the managers.
VAT registration is only compulsory for the companies that perform activities that are subject to the Value Added Tax, such as trading.
A new company in European and Asian region has to hire employees. Recruitment is not a difficult process if you collaborate with job websites and recruitment agencies, especially since the workforce in European and Asian region is so well-trained. The average monthly salary is rather high in European and Asian region and an employee earns approximately 1,800 EUR.