PROFESSIONAL SERVICES

European Company (Societas Europaea) in Cyprus is a public Pan-European company. 

The rationale behind the concept is to create individual legislative frameworks, which would allow companies incorporated in different member states to merge or form a holding company or joint subsidiary without facing the constraints of different legal systems. 

Taxand Cyprus discusses how the formation of a European Company can be achieved and what the requirements are.

The formation can be achieved by:

•    Merging 2 or more public or European companies from at least 2 different member states;

•    Creating a holding European company with 2 or more public or private limited liability companies including European companies from at least 2 different member states or with a subsidiary in another member state for 2 years or more;

•    Setting up a subsidiary with 2 or more companies including European companies from at least 2 different member states or with a subsidiary in another member state for 2 years or more;

•    Or converting a Cyprus public company with a subsidiary in another member state for 2 years or more.

The requirements for the creation are:

•    Share capital of at least €120,000 (or equivalent in any other currency);

•    The registered and head office can be situated in Cyprus (but this is not mandatory, it can be different addresses);

•    Must be registered in the local Commercial Registry and the registration is published in the European Companies’ Official Journal;

•    Statutes must include name, registered office and objects of the company. They must also state whether there is a 1-tier or 2-tier board structure and the number of members.

A determining factor for establishing an SE is the tax system of the host country, Taxand Cyprus explains. 

“It follows from the above that the tax system of Cyprus makes it an exceptionally ideal and striking location for an SE, as it is a combination of favourable tax rates , a vast network of double tax treaties and a straight-forward tax legislation,” the company details.

Following the complete implementation of the EU Merger Directive by Cyprus pre-existed companies in other member states can now transform into a Cypriot SE devoid of any tax charge.  

Taxand Cyprus:

Taxand Cyprus is better known as Eurofast Taxand, which has been operating in the market for the last 30 years, providing tax advisory services, and a range of other professional services.

Further to providing tax advisory services in Cyprus, Eurofast Taxand delivers a range of legal and financial services in South East Europe, including trust and management, and payroll and accounting services, through fully fledged group companies throughout the Balkans.