CYPRUS



Cyprus is the third largest island in the Mediterranean, situated less than 100 km to the south of the Turkish coast. Since 1974 the island has been divided into two parts - the Greek area to the south and the Turkish area to the north. The total area of Cyprus is 9 250 km2, with a little over one third (3 355 km2 ) being in the Turkish area. The total population of approximately 788 460 (July 2007) can be broken down into three distinct groups: Greek Cypriots - 607 115, Turkish Cypriots - 141 920, others (including many British and Russians) - 39 425. Cyprus has a Mediterranean climate, with hot, dry summers and cool, wet winters. The capital of both the Greek and Turkish areas is the divided city of Nicosia. The economy of the Greek area is more prosperous than that of the Turkish area, which relies heavily on aid from Turkey. The Greek area is recognised by the international community and is a well established offshore jurisdiction. The units of currency are the Cyprus pound and the Turkish lira.

History

Cyprus is an island with a very long history, full of power struggles and periods of occupation by various different forces. The first occupation was by the Egyptians in around 1450 BC, and was followed by two millennia during which the island passed from empire to empire. Turkey ruled the island for 300 years from the latter part of the 16th century until 1878 when an agreement was reached with the British over the administration of Cyprus. After the First World War Cyprus became a British Crown Colony, and so began a very turbulent period. Riots and terrorism broke out at various times up to the granting of independence in 1960. Problems continued between the Greek and Turkish communities, with Turkish Cypriots demanding the establishment of a separate state and the Greeks insisting on unity. Things came to a head in 1974, when the hostilities led to the current situation with a UN buffer zone separating the two sides.

Politics

When independence was proclaimed in 1960 the constitution called for a system of government incorporating the two communities, under a Greek Cypriot president and Turkish Cypriot vice president, who would jointly appoint a Council of Ministers from the 50 (35 Greek and 15 Turkish) elected members of the House of Representatives (this was later amended to 80 members with 56 Greeks and 24 Turks). In practice, however, this only worked for the first years of the 1960s, and the two areas are now governed independently. The Greek-run government has retained the planned format with the post of vice president and the seats allocated to Turkish representatives remaining vacant. The Turkish community established their own legislative institutions and proclaimed the self-governing "Turkish Federated State of Cyprus" (now "Turkish Republic of Northern Cyprus") in 1975, though this state is not recognised by the international community.

INCORPORATION DATASHEET
Method of incorporation / registration:	The Memorandum and Articles of Association must be signed by the shareholders of the company. The minimum number of shareholders is 1.
Company legal form:	Private Limited Company by shares
Company status:	Resident Company
Source of corporate legislation:	International Trust Law of Cyprus.
Possible suffixes to company name:	Ltd., Limited.
Restrictions on company name:	The terms Bank, Insurance, Global, National, Imperial, European, Cooperative, World-wide, Investment, Financial and Trust may not appear in the company name.
Time required for incorporation:	6-8 weeks
Number of directors:	Minimum 1 of any nationality
Number of shareholders:	Minimum 1
Capitalisation:	No minimum requirement, usually 1000 EUR the payment of which is not obligatory.
Accounting / reporting requirements:	Yes. Audited accounts are required annually.
Type of shares:	Registered
Annual tax and duties:	10% of net profit
Information publicly available:	Registered office, directors, secretary, shareholders.
Disclosure of beneficiaries:	Not required
Registered office:	Local registered office is required by law.
Registered secretary / agent:	Company secretary is required by law.
Double tax treaty:	Cyprus has an extensive network of DTTs

COMPULSORY COSTS (payable prior to registration)

FORMATION FEES
Incorporation fee:	470 EUR
Notarial certification:	90 EUR
International authentication (Apostille):	90 EUR
Legal expenses, filing fees and stamp duties:	170 EUR
Issuing of share certificates and initial minutes and forms:	80 EUR
Compulsory Tax Registration Fee	100 EUR
Corporate seal:	45 EUR
Courier fees:	45 EUR
Subtotal:	790 EUR
ANNUAL FEES*
Registered office and registered agent:	390 EUR
Company secretary:	390 EUR
Annual tax and duties:	10% of net profit
Subtotal:	780 EUR
Total:	1570 EUR

*The annual fees for the first year of existence of the company are payable prior to registration. Subsequently, the amount of 780 EUR is payable annually, beginning from the second year of existence of the company. Non-payment of the annual fees results in the company being struck off the Company Register.

The amount of 1570 EUR includes the following services: formation of the company, duties payable to the local authorities for the registration of the company, filing fees, provision of registered office and secretary for 1 year, luxury leather corporate kit containing Certificate of Incorporation with Apostille and authenticated translation into English, certified translation into English of Memorandum and Articles of Association, Certificates of the director(s) and secretary, Certificate of Registered Office, Approval from the Central Bank for the registration of the company, share certificates, initial forms and minutes and 2 company seals. The price contains no hidden costs!

OPTIONAL COSTS
Nominee Director (private person):	990 EUR
Nominee shareholder:	210 EUR / year
Accounting & auditing fee:	Varies according to the number of transactions involved.
Special Power of Attorney with Notarial Certification:	290 EUR
Notarial Certification or Apostille:	90 EUR
Certificate of Good Standing:	90EUR
Certificate of Tax Residence:	275 EUR

LAVECO Ltd. is pleased to offer its clients shelf companies in Cyprus. Contact our office for details and a list of shelf companies, or visit the part of our website dedicated to Cyprus. The price of shelf companies varies according to the level of optional services required.

SPECIAL OFFER
Formation fees including annual fees for the first year. Minimum package: ready made Cyprus company with the client as a director, registered office and secretary	1870 EUR
Fees payable from the second year. Minimum package: registered office and secretary	790 EUR