Questions

1. Do I have to come to Cyprus for setting up the company?
2. How is confidentiality ensured?
3. If nominees are appointed, how am I safeguarded?
4. Can I get a company or personal credit card?
5. What is the difference between authorised share capital and issued share capital? Does the issued capital have to be paid for immediately?

Answers

1. Do I have to come to Cyprus for setting up the company?

No, you do not have to be physically present in Cyprus either during the registration procedure or later when the company is operational. If you do not choose to set up a fully fledged office and you use our address as the registered office of the company, you can send us instructions on any aspect of the company's administration by fax or e-mail and we will carry out any necessary work. Some of our clients have never visited Cyprus and yet they are operating very profitable IBCs.

Of course you are welcome to come and visit us any time in Cyprus, use our office facilities and perhaps combine your stay with a holiday in Cyprus.
 

Alternatively, if you choose to set up a fully fledged office on the island, you can move to Cyprus with your family, as director of the IBC (subject to certain conditions).

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2. How is confidentiality ensured?

When any company is registered in Cyprus, the company's file at the Registrar of Companies (which contains details of the directors, shareholders, company secretary and registered office) is open to inspection by the public. IBCs can avoid this by appointing nominee directors and shareholders i.e. persons to act on their behalf. In such a case, it is the names of the nominees which will appear in the company's file. The identity of the true owners will only be disclosed to a local bank if the company chooses to maintain a bank account in Cyprus. Information regarding the identify of the true owners is not disclosed to any third party or government authority unless it is in relation to a properly authorized criminal investigation (drugs, terrorism, e.t.c.).

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3. If nominees are appointed, how am I safeguarded?

If you choose to appoint nominee directors and shareholders (our employees can used for this purpose), then for your protection you will get the following documents:
 

Every beneficial owner will get an undated transfer of shares document from the respective nominee which can be dated by you at any time and filed at the Registrar of Companies. Also, a declaration of trust is signed by the nominee shareholder indicating that he is holding the shares in a trustee capacity and that he has no rights on those shares.
 

Also, every nominee director provides you with a signed but undated letter of resignation. You can put a date on this letter any time you choose and file the change at the Registrar of Companies thus removing the director. A similar procedure applies for the company secretary.
 

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4. Can I get a company or personal credit card?

You can get both company and personal credit cards but the banks will usually block an amount as security. You can also get a debit card which is connected to your company or personal bank account.

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5. What is the difference between authorised share capital and issued share capital? Does the issued capital have to be paid for immediately?

The authorized share capital is the maximum number of shares that a company can issue as per its memorandum and articles of association. IBCs are usually registered with a low authorized and issued capital of CYP 1.000 to avoid extra costs at the Registrar. This money for the issued share capital does not have to be deposited immediately by the shareholders but it can be taken through the shareholders' current accounts in the company's books and paid for later.