Cyprus Companies are suitable for:
- Consultants / Counsellors
- International business
- EU holding company
- Holding intellectual property rights
- Custody vehicle of movable and immovable property
- Estate planning
- Wealth management
Cyprus Companies quick facts:
|Company type||Private Limited by shares|
|Governing corporate legislation||The Cyprus Bar Association is the governing authority and companies are regulated under the Cyprus Companies Law, Cap.113.|
|Information relating to company officers||Upon registration, names of companies officers will appear in the public registry. Nominee directors are used on a regular basis to protect our clients' identities.|
|Confidentiality||Cyprus offers a high level of anonymity and privacy.|
|Taxation||Lowest taxation in Europe (12.5%)|
|Timeframe||Cyprus has an efficient Registry : 10 days formation time|
|Stability||Stable jurisdiction with very good reputation|
|Paid up capital requirement||1000 Euros|
|Basis of legal System||Common Law|
|Minimum shareholders / directors||Minimum of 1 Director and 1 Shareholder (Corporate shareholders and directors allowed.)|
|Required documents:||Notarized passport copy, utility bill in original, bank reference letter or other professional reference letter. None of the documentation can be older than 3 months.|
CAUTION: Many others list low fees that do not include what is necessary, our fees are Complete.
Cyprus has been an independent republic since 1960. The government structure is similar to other western countries, where free speech, political freedom, human rights and private property are safeguarded.
Cyprus has a presidential system where the President is the Head of State. He is elected for a five-year term. The executive power is in the hands of the Council of Ministers. The President has appointed the members of the council. The legislative body of Cyprus is the House of Representatives, which consists of 56 elected members who serve for five-year term. The legal system is based on English Law. Cyprus is a member of the Commonwealth, UN and the Council of Europe.
Membership in the European Union
Economy and Infrastructure
Cyprus has first-class telecommunications, air and port connections. There are two international airports, one in Larnaca and one in Paphos, but the major ports are located in Limassol and Larnaca.
Cyprus has a free-enterprise economy, where the government’s role is limited to supervision, regulation, planning and provision of public utilities.
The banking facilities available are excellent with a number of onshore banks, offshore banking units (OBU’s) and other licensed financial institutions operating on the island.
ABOUT CYPRUS COMPANIES
Main Key Features & Advantages
Today, Cyprus has the lowest tax regime in Europe and its role as an international financial and business centre is growing day by day. There is no longer a difference in the tax treatment of local companies or International Business Companies, since a single corporation tax is applicable for all companies.
The main tax and fiscal incentives may be outlines as follows:
- International Business Companies pay a tax of 12.5% on its net profits if it is a Cyprus resident. A resident IBC is a company with management and control in Cyprus. In order to determine the management and control of the company, look at the residence of the majority of directors and where board meetings normally take place. Resident IBCs may obtain full access to Cyprus double-tax treaty network.
- Cyprus has no withholding tax on payment of dividends, interest and royalties by an IBC to non-resident individuals or companies.
- Dividend income received by a Cypriot IBC is 100% exempt from tax in Cyprus (under certain conditions).
- Profits earned from branches/daughter companies abroad are 100% exempt from corporation tax. Profits from the sell of shares are not taxable for all Cyprus tax residents.
- 50% of interest bearing investments received is exempted from tax. The interest that arises in the ordinary course of business (e.g. interest on overdue debtor balances) is not exempted from tax.
- There is no restriction how many years you can carry-forward tax losses. You can bring them forward indefinitely to be set off against possible future profits.
- Group relief is available whereby losses from a company can be set off against taxable profits accumulated by another company in the same group.
- There are no tax implications on reorganizations, amalgamations, mergers and acquisitions of companies.
- Exemption from capital gains tax (except on sale of real-estate in Cyprus).
- No exchange control restrictions - an IBC can open a bank account in any currency in any country.
- Cyprus has 32 Double Tax Treaty agreements, which apply to 40 countries. They can be used to minimize tax.
- Confidentiality and anonymity of beneficial owners is safeguarded (true identity is only disclosed to local banks, if a local account is opened and information is not disclosed to any third party or to other countries, except in the case of properly authorized criminal investigation (drugs, terrorism, e.t.c.).
Other advantages of more general nature that Cyprus can offer
- Geographical location (in the middle of three continents)
- Excellent infrastructure
- First-class banking facilities
- A stable, western-type economy
- Legal system based on English Law
- Readily available and highly educated local staff
- Low cost of living in comparison with most Western European countries
- Low crime level
- Excellent schools incl. universities.
- Excellent climate