Substance Made Simple

No, there is currently no fee for submitting, updating, or confirming UBO(s)’ Details in the UBO Register.

The Cyprus Parliament has introduced a new law that sets a limit of €10,000 on cash transactions for goods and services.

1. To comply with tax residency and economic substance rules, a company must:
   • Management & Control: Majority of directors must be Cyprus residents.
   • Physical Presence: Maintain an office in Cyprus.
   • Employees: Hire local staff.
   • Economic Activity: Conduct business in Cyprus.
   • Banking: Use a Cyprus bank account.

Record Keeping: Maintain local accounting records and file tax returns.

Client’s Acceptance is the process that involves the review of a Client’s documentation, reputation, and financial standing prior to entering into a business relationship, in order to confirm that the Client is suitable to accept. During the Client’s Acceptance process, consideration shall be given to Sanctions Regulations.

Sanctions and/or Restrictive Measures are a key tool in implementing nation states’ foreign policy objectives, as part of an attempt to stop financial crime, terrorism, human rights abuse, and the development of nuclear weapons. The most extensive sanctions/restrictive measures are those imposed on Iran, North Korea, Syria, and Russia by many countries including EU Countries, US, Canada, the UK, and many more.

Cyprus Regulated Entities are legally obliged to abide by the UN and EU Sanctions Regimes.

Sanctions can be imposed on:

• • Countries/jurisdictions
  • Industry sectors
  • Entities
  • Individuals
  • Named ships or aircraft
  • Trading activities