A point that often causes confusion is the assumption that a Cyprus company can be registered immediately once instructions are given.
In practice, before we are in a position to proceed with incorporation, we are required to obtain and review certain documents and information relating to the client and the proposed structure.
This is not simply an internal requirement of our firm. As lawyers in Cyprus, we are bound by strict anti-money laundering and client due diligence obligations. These apply in all cases, whether the client is based in Cyprus or abroad.
Below, we set out, in practical terms, what we will normally need at the outset.
Identification Documents
We will require proof of identity for each individual involved in the company, including shareholders, directors and ultimate beneficial owners.
In most cases, this will be:
– A valid passport, or
– A national identity card or other official identification document containing a photograph
Depending on the circumstances, the document may need to be provided as a certified true copy or verified through an approved electronic or remote identification process.
Proof of Residential Address
We are also required to verify the residential address of each individual.
Typical acceptable documents include:
– Utility bills (electricity, water, internet)
– Bank statements showing the residential address
– Tax documents or official government correspondence
– Residence permits
The document should be recent, usually issued within the last six months, and clearly show the individual’s name and address.
Information on the Proposed Business Activity
Before proceeding with incorporation, we must have a clear understanding of what the company will do.
We will therefore ask for a brief description of:
– The nature of the business
– The countries in which the company will operate
– The type of clients or counterparties involved
This is part of our obligation to understand the purpose and intended activities of the company. In certain cases, particularly where the activity falls within a regulated sector, further information may be required.
Shareholder and Director Details
We will need full details of the proposed structure of the company, including:
– The shareholders
– The directors
– Any other persons who will be involved in the management or control of the company
For each individual, the identification and address documents referred to above will be required.
Where a corporate entity is involved (for example, a corporate shareholder), we will usually request:
– Certificate of incorporation
– Details of directors and shareholders
– Memorandum and articles of association
– Registered office details
In some cases, particularly where the company is not newly formed, we may also request a certificate of good standing and information regarding the group structure or activities.
Ultimate Beneficial Owner (UBO)
Cyprus law requires us to identify the natural person or persons who ultimately own or control the company.
Where the structure involves more than one layer, we will need a clear explanation of the ownership chain, together with the relevant supporting documents.
This is a core requirement and applies in all cases.
Source of Funds (Where Applicable)
Depending on the nature of the client and the structure, we may also need to obtain information regarding the source of funds.
This will not be required in every case. However, where applicable, we may ask for a brief explanation of how the funds used in the business have been generated, together with supporting documentation where necessary.
Professional Background (Where Required)
In certain cases, we may ask for a short summary of the client’s professional background or experience.
This is typically requested where needed to support our due diligence obligations, particularly in relation to the nature of the proposed business or the source of funds.
A brief, factual description is usually sufficient.
Company Name Options
From a practical perspective, we will also ask you to provide two or three proposed company names, in order of preference.
These will be submitted to the Registrar of Companies for approval.
Certification and Form of Documents
The exact form in which documents are required will depend on the circumstances of each case.
In many instances, scanned copies are sufficient for an initial review. However, before we are able to proceed, we may require:
– The original document to be seen by us, or
– A properly certified true copy, or
– Apostille or other acceptable form of certification (particularly for public documents issued abroad), or
– Verification through an approved electronic or remote identification process
The appropriate method will depend on the country of issue, the type of document and the overall profile of the case.
If certification is required, it must be carried out by an appropriately authorised person (such as a notary, lawyer or other recognised professional) and clearly state that the document is a true copy of the original.
Why This Matters
These requirements are not simply procedural.
In our experience, most delays in company registration arise from incomplete or unclear documentation at the outset. Addressing these points early allows the process to move forward without unnecessary back-and-forth.
It also ensures that the company is set up properly from the beginning, avoiding complications later, particularly when dealing with banks, accountants or regulators.
Our Approach
We aim to keep the process as straightforward as possible.
Once we receive the necessary documents, we will review them promptly, confirm if anything further is required, and proceed with the incorporation without delay.
We are, of course, available to guide you through any of the above, particularly where documents need to be certified or obtained from abroad.
Our Services
Our firm provides comprehensive assistance with Cyprus company formation and related corporate matters, including:
– Company registration in Cyprus
– Advice on structuring and ownership
– Provision of registered office, director and secretary services
– Ongoing corporate and legal support
Where required, we can also coordinate with our affiliated accounting professionals in Cyprus who can assist with matters such as tax registration, VAT and ongoing accounting compliance.
If you are considering setting up a company in Cyprus, you are welcome to contact us to discuss your case.
