The following steps or decisions need to be taken to establish an IBC:
Name of the company
The name of the company should be first decided and an application will be made to the Registrar of Companies for approval of the name. The name of the company should not contain offensive words or names that intend to give a misleading impression of the activities of the company. Further no name will be approved which is similar to names already approved or registered. Therefore it is advisable to submit to the Registrar a number of names to expedite the approval process.
Memorandum and Articles of association and of the Company
Every company registered in Cyprus must have a Memorandum and Articles of Association setting out the permissible activities and the rules to be adhered regarding the internal the management of the company. These will be appropriately drafted once a decision has been reached about the intended activities of the company.
There is minimum share capital requirement imposed by the Registrar of Companies. Under this requirement the minimum acceptable issued and paid up share capital is €1.000.
The legal minimum number of shareholder is one. The name, address, nationality, occupation, passport/identity card details and proposed shareholding in the share capital of the company needs to be provided for each of the ultimate shareholder. In the case where anonymity of shareholders is desired we can provide local nominee shareholders. Also when it is desired that the company will have only one ultimate shareholder we can use a local nominee to provide for the second shareholder.
A company by Cyprus Law must have at least one director. The name, address, nationality, passport/identity card details, and occupation of the proposed director(s) needs to be provided. If anonymity is desired local directors can be appointed and we can provide the services of the services of these directors. In certain cases when it is important to show that management and control is exercised from within Cyprus it is also recommended that the number of resident directors to be equal or above the minimum number necessary to constitute quorum as stated in the Articles of the company.
Company Secretary and Registered Office
A company by Cyprus Law must have a secretary and a registered office in Cyprus which may be also used as the business address of the company. Both of these services can be provided by us.
Bank reference need to be provided in connection with financial standing of physical persons (directors and ultimate shareholders).
Formation Procedure and Time Required to Complete
The information requested in paragraphs above needs to be furnished to us before we can proceed to form the company. After a name is chosen and approved by the Registrar of Companies the Memorandum and Articles of the company are drafted and an application for the incorporation of the company is made to the Registrar. The entire procedure usually takes from one to two weeks to complete.