Online consultation

Theme:
Online consultation
Question 28.12.2017

A couple of questions on accreditation of a branch (a Cypriot company):

1. I do not fully understand the recommendation which seems to be used often: the Regulations of a branch is APPROVED by the Company (and this is specified in the Resolution on opening the branch), but SIGNED by the head of the branch (who has an appropriate power to sign it).

In my opinion, this document should have a signature of those who approved this document, and many years ago I have accredited a branch with the State Registration Chamber, the Regulations was approved and signed by the head of the branch, and he was authorised to APPROVE the Regulations of the branch and make changes to that. Is this way acceptable nowadays?

2. The directors and shareholders of a Cypriot company are legal entities. Is it necessary to use the documents verifying the powers of the individuals who sign this resolution (i.e. they will not be specified in certificates)?

Of course, the resolution to open a branch will be certified by a «notary» (certifying officer) and apostilled. BUT: in the verification of a Cypriot «notaries» it is not said that the powers of signatories are verified, but said «signed in my presence by ... As the Certifying Officer, I certify only the signature which appears on document and assume no responsibility for the content of this document...» Some time ago I had to deal with a notary (well, just once) who requested the whole load of additional documents to confirm the powers of those who signed the document.

Thank you in advance!

Online consultation
Answer

Good afternoon!

1. The text of the regulations is approved and signed by the company’s management (as well as the resolution). A head of a branch can also sign the Regulations if they have an appropriate proxy power. In this case it is also recommended to specify the head of the branch in the text of the resolution as entrusted to do so.

The option of approval and signing the Regulations of a branch by its head is optimal in case if, for example, the address of the branch is about to be changed, and appropriate changes in the Regulations are needed.

2. If the directors of a Cypriot company are legal entities, it is strongly recommended to use the certificates of directors of each of these legal entities which would confirm the powers of the signatories of the resolution to open a branch. Under Cypriot legislation, it is sufficient to get the documents certified by a notary (a certifying officer) who verifies the authenticity of the signature, according to Russian legislation — the authenticity of the signature and powers.

However, the main difficulty lies in the fact that the overwhelming majority of Cypriot companies have discrepancies in the statutory documents (inconsistency of information in the Articles of Association and in certificates), which ultimately lead to a refusal of accreditation.