What are the documents required for the registration of a branch in Cyprus?
In order to register a branch of a foreign company in Cyprus, the following documents have to be submitted to the Registrar of Companies:
- Memorandum and Articles of Association of the existing company
- Details of the Directors and Secretary of the company
- Details of the Cyprus resident, who will assume the role of the company representative
The aforementioned documents should be legalized and apostilled in the country of issue and translated into Greek. In addition to these, forms AE1, AE2 and AE3 must be completed and filed to the Registrar of Companies.
Why is a Cyprus resident required?
The Cyprus resident will assume the role of the company representative. Authorized by a Power of Attorney, s/he will be the representative of the company before the Cyprus authorities during the registration procedure andwill be theperson in charge of any communication that may occurafter the registration with the authorities.
Are there any tax obligations that follow the registration of a branch?
Yes, the parent company is subject to the obligation to register for VAT (where applicable) and to file annual accounts. The parent company has to submit copies of its financial statements for each financial year.
Which tax regime applies for the profits of a branch?
If the management and control of the branch takes place in Cyprus then the profits of the branch are subject to the Cyprus corporate tax rate (12,5 %).
If the management and control of the branch is not in Cyprus, then the profits of the branch are exempted from taxation in Cyprus.
Who is liable for the activities of the branch?
The branch is not considered a separate legal entity, therefore the head office is fully liable for any activity the branch might undertake and for any debts and other obligations that may occur.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
