Cyprus

CYPRUS INCORPORATION SERVICES

In the past few decades Cyprus has emerged as a well known and trustworthy International Financial Centre. Thousands of businessmen and entrepreneurs from all over the world have maximized their profits through the helpful utilization of Tax system in Cyprus. This member country of the EU offers world’s lowest tax rates (10%), only 15% of the Europe’s VAT rate and many corporate advantages (including nil withholding taxes on all the dividends and royalties). These benefits make Cyprus Company Incorporation as one of most attractive options around the world. The Cyprus Limited Companies are about to set the standards for European Free Enterprise.

Our team of incorporation specialists that can help you with the whole registration process of your international business company. Contact us today, or see our other countries where we can incorporate.

In Law every company is recognized or known as a legal entity, apart from the owner or the directors and stakeholders. The company has its own legal existence according to lay which is separate than the person or persons who own it. Most easily and cost effective business structures are made through the Private Limited Companies.

A complete procedure has to be follow to obtain the permission of the Registrar of companies for the registration of the company offshore. Once you will follow the complete procedure and have this permission, your company will be then eligible to start its operation.

CYPRUS INCORPORATION

Documents and Information

We require following information for incorporation of your offshore company in Cyprus.

  • The proposed Name of your Company
  • Full name, date of birth, address and nationality of the Directors.
  • Full name and address of the Shareholders
  • You have to specify the major activities and the objectives of your company.
  • The number of shares and the amount of capital taken by all the shareholders.

In addition to that you have to provide following documentation:

  1. Evidence of your Identity i.e. Passport, National Identity card or driving license with photograph.
  2. Evidence of your residential address i.e. Gas/Electricity bill or you can provide the bank or credit card statement of the recent 3 month.

LLC INCORPORATION IN CYPRUS

It’s necessary according to the law of Cyprus that the application for incorporating a company in Cyprus must be processed through the Law office of Cyprus.  Following is the procedure of company formation:

  • Company’s name Approval
  • Exchange Control Approval: An application will be sent to the Central Bank
  • Memorandum and Articles of Association preparation and printing mutually in Greek and English.
  • Following documents will be draft and file by us to the Registrar of Companies: Memorandum and Articles of Association of your company in Greek Language; forms HE1, HE2, HE3; Central Bank approval and registration duty payment.

After this whole procedure the Registrar of Companies will provide us Registration Certificate in Greek and a copy of it in English, in addition to this a certified list of all the directors, shareholders, secretary, Memorandum and Articles of Association, Registered office and Good standing certificate of the company. Once the company receives the Certificate of incorporation it can commence its operations like meetings of the directors, opening bank accounts and other similar activities.

Directors

  • A single director is required.
  • Nationality doesn’t matter for a director.
  • Registrar have the record of the names of initial directors a. Further details are also provided to the Registrar.
  • It’s allowed to provide the Nominee Directors. Mostly a nominee Cypriot director is proffered because a company can claim the residency in Cyprus in this way, and acquire the benefits of the tax treaties.

Shareholders

  • Any nationality shareholder is eligible
  • Just a single shareholder is obligatory
  • Corporation can also be a shareholder
  • It’s allowed to have Nominee shareholders
  • Providing appoint a local resident shareholder is not necessary.
  • The subscribers of the company are recorded in the list of the Registrar of companies, so any changes in the shareholders must be notified and registered.

Company Secretary

A company secretary is required for Cypriot companies. A resident secretary is not necessary, but in order to set up a tax residency for your company, the company needs to display the management and operations control within Cyprus. That’s the reason why it is recommended to have a resident secretary for ease of management.

 

FEES STRUCTURE OF CYPRUS COMPANY INCORPORATION

The total cost of company incorporation in Cyprus along with share capital and Memorandum and Articles of Association is $3000. The average procedure time of incorporation before name approval is 5 days.

Registered Agent World Wide has offices in different location around the world, and it is an experienced company providing the effective incorporation for companies worldwide.

We will incorporate your company according to the name you chose and try to make the procedure as simple as possible for you.

You can also complete the overall process of incorporation online, and our company will fill all the required forms for you.

What else makes registering a company in Cyprus so attractive?

Cyprus has treaties of double-taxation with 44 countries of the world, including some of the high-tax countries and states in Europe. For companies aiming at the emerging markets, this is the best low-tax hub for them. In addition to this the contrary has stable and very strong economy lowering most of the business costs.

The political stability condition in Cyprus

As a result of Turkish Invasion on 1974, Cyprus remains separated. But this does not have major impact on the economic development of the country, particularity in the Greek sector of the island.  The Gross Domestic Product (GDP) per capita in that sector was recorded as $21,600 in 2005, and this figure is among the top list of the Mediterranean.  The Turkish sector’s GDP was one third of this figure. Being specialist in this field our company will assist you with the company formation process.

Major types of company formation in Cyprus

Following are the most common choices of the investors for incorporation in Cyprus:

  • Limited Liability Company
  • Cyprus branch
  • Partnership

Main Features of Limited Companies

  • You don’t require minimum share capital
  • One to fifty must be the number of shareholders
  • One director is necessary for a company
  • Its required to fill and audit the annual accounts in Greek

Main Features of a Branch in Cyprus

  •  The main or head quarter is responsible for all the liabilities
  • It’s necessary to register the branch with Registrar of Companies
  • All accounts must be filed in Greek, annually.

 

Major features of a limited liability partnership in Cypus

  • General partnership requires between two and twenty members
  • Limited partnership requires at least one partner and unlimited liability
  • It’s necessary to register it with Registrar of Companies
  • Auditing account is not necessary, but keep proper books

The offshore companies in Cyprus

If your company is not managed or controlled from/in Cyprus then an incorporated company is not considered to be a tax resident of the country. In this case the company is suppose to have the majority of directors outside Cyprus, and meetings also holds outside the country. Its possible to achieve 0% corporate tax as long as no operations are done within the country of Cyprus.
Thos companies are subject to zero taxation that are incorporated in Cyprus but they are not tax residents.

The financial Incentives of Cyprus Incorporation

Considering company incorporation in Cyprus, it does not apparently offer any particular incentives to the foreign investors. But the Government has a point that the low taxation policies for the foreign investors are great incentive. However, you can enjoy numerous grants and loans being an investor from different sectors like high-tech and traditional economic sectors, and exemptions from the custom tax are offered by the Larnaca free trade zone. There are also many other personal tax exemptions provided.

Recruiting Staff in Cyprus

The economy of the country has powered up in the past few years, and as a result of this getting a specialist staff for any foreign company is much easier in Cyprus. In addition to this the laborer pool is also well educated and qualified, and the rater is lesser than many other EU members.

Banking Facilities for Cyprus Companies

Cyprus is now considered as the major regional investment hub, and it has also developed many world class banking facilities for International banking. There are several branches of international banks, operating in Cyprus.  You can get complete assistant for the banking system in Cyprus from us.

Benefits of Offshore Banking

Enjoying fiscal benefits of the other territories in the world is one of the biggest advantage of an off shore banking.

Therefore, you will enjoy double benefit of starting a business in Cyprus, because of its low taxation policies and running your bank account in one of the well reputed international European financial hub.

By opening an offshore account after incorporating your business in Cyprus, you can run you business and personal account together more effective, and probably better than your home country

Features of Corporate and Personal Offshore Bank Accounts

You can keep your offshore bank accounts as anonymous if they are operating on you company’s name, and the Registered agent worldwide incorporation services also include nominee directors that can operate the bank account on your behalf.

The standard features of the Cyprus bank accounts are the online banking and IBAN numbers, so it’s really easy to access your account via internet from any place in the world.

Our services provide all the required assistance from you company’s incorporation to finding and opening your account in a well reputed financial institution for effective offshore banking.

Mostly it the opening of an offshore bank account take place within a week because of the process of completing all the formalities.

Various factors combine together to make Cyprus as one of the most attractive business hubs for many foreign investors.

 

Income Tax Rates

The Corporate Income Tax

All profits on trading are taxed at 10%, and this rate is one of the lowest of the European corporate income taxes.

Interest Income

Active interest income is taxed at the rate of 10%.

Passive interest income has 50% exemption from the corporate income tax, so it is taxed on the remaining 50% at the rate of 10%.

Dividends Policies

  • Dividends paid are inter-company.
  • If dividends are paid from one Cyprus tax resident to another then these dividends is tax exempt in the country.

Dividends received outside of Cyprus.

  • Tax exemption for dividends received from abroad is only possible if tax exempt if:
  1. The company is not involved in more than 50% of the activities, directly or indirectly.
  2. The foreign tax burden on the income must not be lower than the tax burden of the company in Cyprus.

Withholding Taxes

To non-tax residents, you don’t have to pay any withholding taxes on payments to Cyprus.

Capital Gains Tax

In ordinary trading profits, capital gains are not included and are paid separately according to the law of Capital Gains. A tax rate of twenty percent 20% after allowing for indexation is imposed on Capital gains you get from any sale of share or property that is immovable. In case of property disposal or shares outside Cyprus, there is no tax paid on the Capital Gains.

Benefit of Cyprus-Russia Double Taxation Treaty

For any company in Cyprus, the Double Taxation Treaty (DTT) held between Russia and Cyprus offers great opportunities to conduct the business in the country. This treaty is considered as best in Russia and for others it provides following benefits:

  • At investment of around 100.000 , there is just 5% withholding tax (WHT)
  • For royalties payment, there is 0% WHT
  • All tax paid on profits are consider as the right of vendor’s country of residence.
  • In case of income extraction from Russian and Cyprus companies:
  • A lowest interest rate of just 10% is imposed.
  • The dividends received by Cyprus Company are exempted

 

A Cyprus company offers many distinct advantages. Contact us today to see how you can benefit from a Cyprus Company and allow us to be your company agent for your Cyprus Company.

The total price is quoted in our pricing guide.

Payment can be made via bank transfer or Paypal, details to follow after due diligence materials are received.

Please view our other jurisdictions:

Contact us today for more information on all corporations, and for personal assistance with your incorporation. Your business is important to us, you are not just another number to us. We give personal attention to each and every corporate filing.

 

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