Cyprus Branch/registration incorporation procedures
The setting up of a Cyprus Branch can be achieved by submitting an application with the Cyprus Registrar of Companies. The application for the setting up of a Cyprus Branch is submitted by an authorized person acting on behalf of the foreign company (foreign head office) through a power of attorney.
The following documents are required in order to file an application for registering a Cyprus Branch:
– Certificate of incorporation of the foreign company
– Memorandum & Articles of Association of the foreign company
– Details of directors and secretary i.e. certificates etc. of the foreign company
– Details of a person resident in Cyprus to represent the Cyprus Branch
Note: All documents should be certified and legalized by an Apostille or Notary Public and be translated into the Greek language.
Cyprus Branch taxation
– A Cyprus Branch is taxable in Cyprus only if management and control are exercised in Cyprus i.e. the same way as Cyprus tax resident companies;
– A Cyprus Branch can enjoy the same taxation benefits as those of a Cyprus Company;
– Cyprus does not impose any additional taxes on Cyprus Branch profits remitted to the foreign company;
– If the Cyprus Branch is expected to make losses at the beginning of its operations, the foreign company may offset such losses against its taxable profits however, this is subject to the tax treatment applicable in the jurisdiction of the foreign company;
Statutory reporting of a Cyprus Branch
– Audited financial statements are required by the Cyprus Companies Law 113 (if in a foreign language, a certified translation in the Greek language is required)
– The tax return needs to be filed with the Cyprus Tax Department
– The Cypriot Branch needs to have the same name and activities as those of the parent company
– Cypriot Branch liability rests with the parent company
– A Company stamp need also be filed with the branch offices in Cyprus
Obtaining Cyprus Branch VAT Number – Cyprus VAT registration
Getting a Cyprus VAT registration number requires the relevant entity certificates and file in the VAT application which is submitted to the Cyprus VAT authority (Cyprus Tax Department).
The Cyprus tax department will require the appropriate forms to be completed, and submitted with the following documentation:
- Certificates and Articles of Association and Memorandum of the foreign company and the Cyprus branch relevant Certificates in case of a Cyprus Branch registered in Cyprus
- Copy of identity cards or passports of directors or in the case of a Cyprus Branch the Cyprus branch representative
- Evidence on taxable supplies (a proforma invoice with branch details, a business contract, etc.) or any other form of evidence evidencing that the Cyprus branch began operations.
The Cyprus VAT number is issued in 2 to 3 days after the Cyprus VAT Registration application.
Obtaining EORI number – Economic Operators Registration & Identification System (EORI) – Cyprus procedure for EORI registration on the name of Cyprus Branch
EORI number is needed when importing or exporting commercial goods to countries outside of the EU, irrespective of the mode of transport being used to move goods from one place to another. This is a method for tracking products being traded to and from the EU so shipments, and their origins, can be easily identified by customs.
The EORI number acts as a means of providing security and statistics in international trade and is used by customs authorities when exchanging information between themselves and with government departments.
Procedure for obtaining EORI number in Cyprus on the name of the Cyprus branch – Economic Operators Registration & Identification System (EORI)
- An economic operator (Cyprus branch) should be clearly registered and established in the Cyprus Customs’
- In order to register an economic operator from a third country in the EORI Database, the economic operator needs to be established in the EU. In such a case, the economic operator is registered by the customs authorities of the Member State that it is established. For registering in Cyprus Customs Registry and EORI Database it is required to be established in Cyprus by registering in the case of a branch, in Cyprus Registrar of Companies and Official Receiver. There are some exceptions and economic operators that are not established in EU customs territory can be registered by customs authorities responsible for the place where they first lodge a declaration or apply for a decision. In such case an economic operator from a third country lodging a declaration in Cyprus, the EORI number will be given by the Cyprus Customs & Excise Department by completing the relevant application forms. A person established in the Republic of Cyprus is authorized to act as an indirect representative for receiving any obligations that might occur according to Customs Legislation.
- The economic operator (Cyprus branch) must complete the relevant application forms to obtain the EORI number in Cyprus. The relevant forms must be accompanied by:
- Copies of relevant legal documents for both the Cyprus branch and the foreign entity.
- Copy of VAT registration certificate
- The economic operator (Cyprus branch representative) must present himself in the Customs in Cyprus together with his passport or identity card together with the Company stamp.
- In the registration application of the Cyprus branch, we recommend considering the declaration of a local customs clearing agent. In this respect, the name of the customs clearing agent, his VAT registration number, and his Customs Licence number are needed.
- The activities of the entity (Company, branch, etc.) in the European Community must be clearly stated.
- Details of the first activity in the EU that will be carried out after the registration must be also stated.
- The EORI registration certificate of the Cyprus branch is then issued.
Applicants can confirm the accuracy of their EORI numbers through the EU database, at the following address: http://ec.europa.eu/taxation_customs/dds2/eos/eori_home.jsp?Lang=en&Screen=0
The time required for the completion of the registration procedure of EORI in Cyprus is estimated at one to five working days, provided that all the submitted documents have been accurately completed.
Cyprus branch opening of a Bank account in Cyprus or in any other part of the world
Please refer to our publication on guidance for the opening of a bank account in the name of the Cyprus Branch by following the link below: https://rightax.com.cy/open-a-bank-account-in-cyprus/
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