How to choose a service provider for nominee services in Cyprus?
- Information about the provider
- Business experience and major client portfolios
- Price offer
- Speed of response from the provider and follow-up
- Means of communication
When starting a business in a new, unfamiliar jurisdiction, you need to consider the local peculiarities of working with contractors. We would like to share with you the criteria you should consider when choosing a service provider in Cyprus. In practice, the basic list of services provided by service providers in Cyprus includes the following items:
- Nominee Director Services
It is quite common for the shareholders of a Cypriot company to opt for a director who is a Cypriot citizen and tax resident. This choice is primarily made because: (1) the company owners may not always be permanent residents in Cyprus, and (2) they often lack sufficient familiarity with Cypriot law to ensure compliance with all local requirements.
- Company Secretarial Services
Please note that having a company secretary is an obligation and not a right of the company. Some of the functions performed by a company secretary include keeping company records, filing details with the Registrar of Companies, maintaining company registers, etc.
- Company Legal Address Services
As a rule, the company address is often the same as the secretary's address since the secretary typically holds the company's documents and is responsible for maintaining them.
Below are some tips on what to consider when selecting a specific service provider in Cyprus:
Information about the provider
Gather personal recommendations from trusted sources, explore the provider's website for services offered and evaluate your first interaction experience.
- In Cyprus, as everywhere else, word of mouth works well. It's advisable to seek recommendations from friends about their service providers, including their strengths and weaknesses, before delving into the market analysis.
- When reviewing a provider's website, focus on the level of detail provided regarding their services and the breadth of services offered. Look beyond basic incorporation services to see if they offer additional support such as opening bank accounts for the company, handling general annual maintenance, and expertise in areas like migration, employment, tax law, and intellectual property law. A provider knowledgeable in multiple areas can save you time and streamline the Know Your Customer (KYC) process by reducing the need to engage multiple contractors.
- Additionally, during the website exploration, we suggest paying attention to whether the company has managers who speak your language. The presence of such personnel can significantly impact the comfort and speed of communication between you and the service provider on various issues.
- It's worth noting how your first meeting with the service provider unfolds. For instance, you might have come with a specific request, but the company may have taken a broader view, addressing all potential related issues that could arise from your initial request.
- Moreover, if you conduct business in jurisdictions beyond Cyprus, it's advisable to check if the company has offices in other locations. Having offices in various jurisdictions enables the company to address complex issues comprehensively, not limited to your specific company in a particular jurisdiction.
- Additionally, having a single point of contact is crucial. This person, preferably fluent in your language, will handle all your queries regardless of their specialty and serve as your primary communication link. They can then delegate your inquiries to colleagues with expertise in specific areas, ensuring efficient management of your business affairs overall.
Business experience and major client portfolios
An essential question to ask is what kind of business experience the service provider possesses. We recommend requesting a list of key clients during your inquiry. This provides insight into the sectors, such as IT or real estate, in which the service provider has significant and longstanding expertise. Opting for a service provider within your sector can save time on document review, preparation, and receiving relevant advice.
Furthermore, examine which international reference books the service provider is listed in, if any. Examples include Legal500, IFLR1000, and Chambers and Partners. These reference books categorize firms based on criteria like country of domicile, sector, and areas of practice. Utilizing these references enables you to identify the service provider's experience across various sectors and areas of practice.
Price offer
Price list
In addition to the information available on the company's website, a more detailed insight into the services offered can often be found in the service provider's price list. By examining the price list, one can evaluate how comprehensive and structured it is. Look for details such as the cost of standard service packages, including nominal services, accounting, migration services, payroll, taxes, and opening bank accounts. The inclusion of such specifics in the price list indicates the company's experience and expertise in these areas.
It's important to note that price lists typically don't specify the cost of unique or non-standard services. Therefore, the absence of such items in the price list doesn't necessarily indicate a lack of experience in those areas. However, a detailed and structured price list can provide valuable insights into the breadth and depth of the service provider's offerings.
Annual service of the company
Now let us look more closely at the technique of comparing price offers for nominal services for the annual maintenance of the company. We recommend the following comparison criteria:
- the annual fee for the annual service (director/address/secretary);
- a one-off fee for checking and signing each company document (contracts, resolutions, powers of attorney, etc.).
|
Important: The cost of checking and signing documents may vary depending on different approaches to such verification and signing. For instance, some service providers base their fees on the number of pages in the document, while others consider the type of document (e.g., power of attorney, resolution, agreement) with separate fees for each. In the case of atypical documents, such as complex documents in M&A transactions, the service provider may specify payment on an hourly basis. |
Speed of response from the provider and follow-up
As 'sega-sega' has not been cancelled in Cyprus, it's important to observe how promptly the service provider responds to your inquiries. It's considered good practice if you receive an acknowledgment of receipt or an actual reply to your inquiry within 2-3 hours, or at least within one day.
Furthermore, it's a positive sign if the service provider promptly follows up after the initial and subsequent meetings, documenting the outcomes achieved. This practice helps prevent any loss or unfinished business.
Means of communication
At the outset, it's crucial to understand the preferred means of communication for a service provider with its clients, whether it's through offline meetings, email, Telegram (WhatsApp), or other channels. In our experience, communication via email isn't always as fast and effective as communication via Telegram (WhatsApp) messenger. Therefore, we recommend that you ask the service provider how they communicate with their clients (and generally you will understand how flexible the service provider is willing to be).
To summarize the above, we emphasize that this article provides only basic recommendations and criteria for selecting a service provider in Cyprus. It's challenging to determine immediately whether a service provider will meet your expectations until you start working with them.
Dear journalists, the use of materials from REVERA website in publications is possible only after our written permission.
For approval of materials please contact e-mail: i.antonova@revera.legal or Telegram: https://t.me/PR_revera
