Investors, who choose Cyprus for company incorporation, may enjoy one of the lowest corporate tax rates in the European Union, a high-level of professionalism, as well as a friendly investment and business environment.
Advantages of Cyprus company formation
- Corporate Tax 12,5%
- Cyprus is a party of more than 50 double treaties based on the OECD including the EU, China, India, Kuwait, Russia, Singapore, Thailand, USA, Azerbaijan, Lebanon, UAE, Georgia and other important hub countries. In addition, Cyprus engages in non – stop negotiations for forming additional double taxation treaties.
- Cyprus International Trusts are exempted from income tax, capital gains tax, special contribution or any other taxes; there is no estate duty or inheritance tax in Cyprus, they are very flexible for relocation, there is no exchange control regulation and can operate internationally.
- The invoices issued by Cypriot companies are normally recognized in all EU countries, since it is a member of the European Union.
- There are no withholding taxes on dividends payments, interest or royalties that are paid to nonresidents (subject to conditions).
- Cyprus is a full member of the EU therefore reliable since it is completely aligned with the EU regulations and OECD standards.
- Company formation can be accomplished within 7-9 days.
- Maintenance annual fees of company formation are at a very reasonable price range.
- In Cyprus nominee Directors, Secretary and Shareholders are allowed.
- The island of Cyprus is considered to be the most well-known EU country for offshore company formation and Trusts.
- Tax law imposes no tax on the disposal of securities.
- The profits from the sale of shares in the stock exchanges are tax free.
- In the case were a loss may occur to a company, the loss can be carried forward opposed to future profits for an indefinite period.
- A very encouraging tax regime for Cyprus Limited Companies that includes no tax on consolidations, no controlled foreign company rules etc.
- The tax law of Cyprus is characterized by its simplicity and effectiveness.
- During the process of the incorporation or opening of a corporate bank account, there is no need for the owner to be present.
- Bank accounts can open between 2 – 5 working days with full online electronic banking and digital pass as well as a debit card (with the condition that all the requested information and compliance is provided)
- Cyprus is operating under the International Financial Reporting Standards (IFRS).
- Cyprus is offering a Group relief option whereby the loss of one company can be covered by the profits of another since both of them are under the Cyprus residential tax scheme.
- Cyprus Permanent Residence and Citizenship Schemes provide several benefits and flexibility to the investors coming from non EU member states, which include as well, family members under 18 years old.
In addition, to the above the Legal System of Cyprus is based on Common Law and its economy operates in an open, market driven principle.
Reasonably, Cyprus is considered to be an EU Tax Heaven island country.
Company name selection
For new company incorporation, the applicant may select a unique name he/she desires. During the submission of the company’s application, a process of verification of the name will take place, therefore, it is highly recommended to propose three alternative names, in order to increase the probabilities of approval by the Commissioner.
The required time for the corporate name to be approved is usually 15-20 days, unless if the application is made in an accelerated manner, whereas the acceptance or rejection of the corporate name will be within 3-10 days.
Registration document and statute
After obtaining the name approval, the relevant documentation for the registration of the legal entity must be submitted, in accordance with the legal form of the entity / business. All Cypriot limited liability companies are required to have a Founding Document and Articles of Association in the Greek language, which will define the activities, objectives, internal regulations and organization of the company. Following the approval of the company’s name, certain forms are attached together with the Company’s documents of Incorporation and Association.
Each company must have at least one registered shareholder, which may be either a company or a physical person. If anonymity is desired, trustees may hold the shares on behalf of the actual shareholders. The following information is necessary for each shareholder: full name, address, nationality, occupation, number of shares and copy of passport.
Members of the Board of Directors
The company must appoint at least one director and one secretary, by law. The duties of the secretary are, inter alia, to ensure that the company complies with the law and by its own rules. It is proposed to designate local directors and secretaries or legal entities. For the appointment of each member, the following information is necessary: full name, nationality, home address, occupation and copy of passport. It is recommended that the majority of the council are from Cyprus.
The registered office and / or the registered base of the Cypriot company must be and operate in Cyprus. The address of the registered office is the official address of the company’s records, accounting records and stamp of the company. An annual audit is carried out in all Cypriot companies and all companies are required to submit economic and tax returns to the Income Tax Officer and the Registrar of Companies.
Time Required for the Establishment of a Cyprus Company
The establishment of a Cypriot company is a process for the completion of which usually takes 7 – 9 days. In any case, an expedition service is available from the Registrar of Companies.
*The above provided information are obtained from a reliable resources and are not binding. ISPA INTERNATIONAL SOVEREIGN PROMOTION AGENCY LTD and its brand www.LuvCyprus.com is not responsible for any errors and/or omissions, for the results obtained from use of above information. We strongly recommend the interest parties to seek the professional guidance of an international expert lawyer, which is an approved licensed member of the Cyprus Bar Association.