Cyprus company with multiple shareholders and dividend management

[kkein]

Hi,
I have a question related to companies owned by more than one person.
Example: a company has 4 shareholders, each of which owns 25% of the company.
- Is this possible in Cyprus?
- can this company still use nominee shareholders?
- would such setup allow to avoid the upcoming UBO registry?
- what are the rules for accessing the corporate accounts, and issuing dividends? Is there any way to make the money flow entirely in the private accounts of only one of the UBOs?
- do all of the shareholders have to be resident in cyprus or is it enough that one of them is, in order to have the corporate accounts reporting their CRS to cyprus?

 

[onemansomewhere]

kkein said:
Hi,
I have a question related to companies owned by more than one person.
Example: a company has 4 shareholders, each of which owns 25% of the company.
- Is this possible in Cyprus?
- can this company still use nominee shareholders?
- would such setup allow to avoid the upcoming UBO registry?
- what are the rules for accessing the corporate accounts, and issuing dividends? Is there any way to make the money flow entirely in the private accounts of only one of the UBOs?
- do all of the shareholders have to be resident in cyprus or is it enough that one of them is, in order to have the corporate accounts reporting their CRS to cyprus?
Click to expand...

- Is this possible in Cyprus?
Yes
- can this company still use nominee shareholders?
Yes
- would such setup allow to avoid the upcoming UBO registry?
No
- what are the rules for accessing the corporate accounts, and issuing dividends? Is there any way to make the money flow entirely in the private accounts of only one of the UBOs?
% of profit distributed as dividend does not have to be equal to % of ownership of company. Board of shareholders can make decision about distributing a profits by any % to any shareholder.
If there will be more than 1 shareholder receiving profits by resolution of shareholders, all the money can go to 1 bank account of one of them. But there has to be a written contract between conmpany and shareholders stating, that one shareholder is receiving a payment if dividends of other shareholder on its account.
- do all of the shareholders have to be resident in cyprus or is it enough that one of them is, in order to have the corporate accounts reporting their CRS to cyprus?
Corporate account will be reported to all countries of all UBOs, where they are a tax residents.