Cyprus Company Formation: Cyprus Branch of Overseas Company
Part VIII of Cyprus’ Company Law deals with companies incorporated outside the Republic of Cyprus and lays down the provisions as to the establishment of a place of business of those companies in the Republic of Cyprus, whereby they will be recorded as Overseas Companies, by filing the necessary documents to the Cyprus Companies Registrar under the Companies Law Cap. 113 (section 347).
The registration of a branch does not mean that a new legal entity is created in Cyprus. It means that the already existing legal entity, which is established under a different jurisdiction, has a branch in the Republic of Cyprus and it may operate through this branch for its international activities.
The branch enjoys all advantages extended to all international business entities. If the management and control of the business of the branch is not in Cyprus, the profits of the branch are exempted from all taxes. In the case that the management and control of the branch is in Cyprus, the profits are taxed at the rate of 12.5%.
Every overseas company wishing to establish a branch in Cyprus is required to file various documentation with the Registrar of companies within one month of establishment. Such documents must be certified by the Registrar of Companies or by a director of a company as true copies and legalized by an Apostille or Notary Public and translated in Greek.
A list of documents needs to be submitted to the Registrar in order to proceed with the registration of a branch (with a view to obtaining a certificate of a foreign company in the Republic of Cyprus).
It is important that there must be a representative person of the branch resident in Cyprus authorized to represent the company and the branch when carrying out transactions with 3rd parties and when it is represented before the court and authorities.
For more detailed information, contact our team of specialists at Parparinos Milonas Corporate and Legal Consultants.