Establish a branch in Cyprus:
A company incorporated outside of Cyprus may establish a branch. This does not amount to the creation of a separate legal entity in Cyprus but is simply an extension of the foreign company.
Procedure for establishing a Cyprus branch
To do this, they must file with the Cypriot Registrar of Companies within one month of establishment the following documents:
- Certified copy of the memorandum and Articles of Association or the charter or other instrument defining the constitution of the company.
- Certified certificate of incorporation of the company.
- Particulars of the directors and secretary of the company.
- Name and address of at least one person resident in Cyprus authorised to accept service of notices on behalf of the company.
All documents are required to be notarised, apostilled and translated into Greek. Various forms must also be submitted along with the above information.
A Cyprus branch is required to annually file the financial accounts of the overseas company with the Registrar of Companies. A certified translation in Greek will be required. There are certain exemptions that apply for overseas EU companies under EU directives. Exempted companies must deliver to the Registrar a certificate signed by a director and secretary of the company to this effect and also a statement from the relevant authority of the company confirming this exemption.
From a tax point of view, the branch is treated as a permanent establishment. It will have the same tax treatment as a local company and an annual tax return must be submitted to the tax authorities. If the branch is managed and controlled from Cyprus, it will be liable to tax on any profits arising from the permanent establishment and VAT tax, if applicable.