For many years he has worked and devoted his skills and efforts towards building a successful career as a leading executive. From humble beginnings, his aim has always been to yield results; with a keen focus to attention to detail and client satisfaction. His experience has always been varied and not specific, at times he preferred it. With that in mind, he has dealt with CySEC on licensing and ongoing regulation, international private equity and credit fund managers, NASDAQ and NYSE listed companies occasional millionaires as well as self-made millionaires. His passion though is difficult transaction work organizing and deploying people for a common goal. Harris enjoys reading and studying the Cyprus law and sharing that information on this website.
Cyprus private companies limited by shares are required to prepare and submit to the registrar of companies an annual return HE32. The Cyprus annual return HE32 must be accompanied by (1) Audited Financial Statements (the “FS”) and (2) Declaration of the Director and Secretary (the “Declaration”) confirming that the FS submitted are those presented to the shareholder at an Annual General Meeting (“AGM”)
A company is formed in Cyprus by way of law. The principal legal instrument giving such right is the Companies Law, Chapter 113 of the laws of the Republic of Cyprus, however the memorandum and articles play an equal important role in a Cyprus Company Formation. These two ‘constitutional’ documents are often called upon to deal with business matters of the Company and in other times to define the rights of the various parties.
A Cyprus Private Company Limited by shares is a class of private companies incorporated in accordance with the Cyprus Companies Law, Chapter 113 of the laws of the Republic of Cyprus. It is the most frequently used vehicle in Cyprus its numbers, statistics of the Registrar of Companies, being over 200.000 and on an annual basis around 14.000 new companies are incorporated every year.
Within the Companies Law, Chapter 113 of the Laws of the Republic of Cyprus the term “Prescribed Form” (καθορισµένο τύπο) which means the Cyprus Registrar Forms is mentioned several times. Although the Companies law requires information to be submitted in the Prescribed Form this does not create automatic legality of the said action (e.g. change of director) is not implied
In the case of Morsa Trading the district court held that a person becomes a registered member of a Cyprus company when that person’s name is registered in the register of members. Accordingly, the transfer of shares in a Cypriot Company requires, amongst other things, the registration in the register of members.
Migrating a company to Cyprus is not without its challenges, nevertheless if the foreign countries laws allow a company may redomicile and migrate to Cyprus. After which time it will be registered under the companies law.
Publications on Cyprus Trust Law
The primary purpose of a Cyprus International Trust is and shall always be the controlled transfer of wealth from one person to another. More frequently Cyprus International Trusts are used as top holding vehicles, whereby the hold the assets of the family and act as a means to transfer the wealth to the next generation.
Until recently Cyprus International trust was confidential. With no reporting, financial audits and particular public disclosures secrecy and anonymity were ensured. For the following reasons Trusts have been on the regulators’ spotlight and nowadays require public disclosure to several authorities.
A Cyprus International Trust allows succession planning and transfer of wealth to the next generation or to a class of persons. The law was amended a few years ago and in this post, I took a deep dive into its provisions, how these vehicles are affected by the various mandatory disclosure rules as well as the reasoning behind establishing a trust.
In this article i examined the possibility of structuring an employee benefit plan for a start-up by using a trust. The advantages and disadvantages as well as the difficulties that might be faced by such a structure
Publications on Cyprus Tax Law
The EU Blacklist is the newest tool to tackle the risks arising from tax abuse and unfair tax competition. It targets jurisdictions that do not meet and do not intend to meet EU tax good governance criteria. The idea was that a single EU list would hold more weight than several national lists. The EU Blacklist was officially launched on the 5th of December 2017
The Cyprus income tax law forbids related party transaction to carry out on preferential terms. Effectively disallowing any preferential treatment afforded due to the relation of the parties. The Cyprus Income Tax Law taxes any income which would arise in the absence of such special treatment.
In September 2015, Cyprus introduced the Notional Interest Deduction (“NID”) regime. A new and powerful tax tool provided to business enabling them to create a return on new equity injected into a local business. The return is achieved by deducting a ‘notional’ interest expense from their taxable income subject to the value and the applicable reference rate.