Charitable Institutions in Cyprus
Cyprus charitable institutions may take the form of a private company limited by guarantee, a local trust, an international trust or another similar form.
Cyprus Private Company Limited by Guarantee
The Cyprus Companies Law, Chapter 113 of the laws of Cyprus, provides for the setting up of a Cyprus company who’s objects are and main business activities concern the raising and granting of charity.
Cyprus companies caring on non-profit activities may apply to have the word “limited”, or any other similar word required by the Cyprus Companies Law to be the last word of the company’s name, to be deleted e.g. ABC Donations Limited applies for the word Limited to be deleted and if accepted then the
ABC Donations Limited will be called ABC Donations.
Non-profit Cyprus companies may be registered with the Cyprus Inland Revenue Department and then a certificate will be issued evidencing it’s incorporation and registration as a charitable company.
Non-profit Cyprus companies still require to comply with accounting, audit and tax requirements annually.
Trust formation is simple and no registration requirements apply. A comprehensive trust deed will govern the powers and rights of the trustee and the beneficiaries of the trust.
The trust may be a discretionary as to the trustees powers or specific.
Annual accounting and financial statements are not required.
International trusts are similar to thr local trusts, see above, however the law regulating international trust was passed having in mind wealthy individuals and the protection of their assets.
The International Trusts Law assures that this vehicle will be used as an asset protection tool by granting possible claimants a right to make a claim and void the trust if their claim is brought within 2 years from the date the Cyprus International Trust is created.
Please drop a line if you would like further more specific information.