A new regulation entered in force as of the 18th of December of 2018, abolishing the capital duty of 0,6% on the authorized share capital of a company, leaving only the flat fee in place.
More concretely, no capital duty will be applicable neither on the initial capital upon incorporation of a new enterprise, nor any subsequent increase will take place on the existing authorized share capital.
For example, up to the end of the year 2018, a client that wished to have an authorized share capital of €100,000, due to the capital duty of 0,6%, a payment of €600 had to be paid upon incorporation of his/her company. In addition to that, a flat fee of €105 that is still required, plus the flat fee of €20 for the premium shares, if any. Henceforth, due to the new legislation, the above-mentioned capital duty is abolished, so the client who wishes to incorporate a company in Cyprus, won’t have to pay the €600 capital duty fee, as he would have, under the sway of the previous regulation.
The new regulation ΚΔΠ 364/2018 voted by the Council of Ministers of the Republic has made it now more attractive than ever to register a company in Cyprus, as enterprises with high share capitals will find it easier to move their businesses to the Republic, without any higher fee limitations.
In addition to the above mentioned, all existing statutory forms provided by the Registrar of Companies will soon be replaced by newer and more precise forms, making the process of incorporation easier and more effective.
For further information and a personal consultation, please contact our law firm Arsen Theofanidis LLC and one of our legal consultants will be happy to assist you!
By N. Kalifatidou
Advocate – Legal Consultant
Arsen Theofanidis LLC