General information

 

​​Cyprus has, especially after EU accession in 2004, rapidly developed into one of the most prominent financial centres in Europe. Cyprus has the lowest general corporate income tax rate in the EU (10%), a close to perfect tax exemption system for holding company income and double tax treaties in place with around 45 countries.  Cyprus does not levy any withholding tax over outbound dividends or interest. There is normally no withholding tax over royalties either. Cyprus is a politically and economically stable country where English, being one of the country’s official national languages, is widely spoken.



Currency: EURO
Language: Greek

Type of law: Common law
Type of Company: Limited Liability Company

 

Principal Corporate Legislation: The Companies Law Chapt. 113. The Income Tax laws of 2002. The Special Contribution for Strengthening the defence of the Republic laws

Uses: Holding, servicing, financing, licensing and (other) trading, portfolio investment and investment fund activities, subject to possible restrictions as below
Trading Restriction: Certain activities cannot be undertaken unless a license has been obtained. This includes banking, insurance and other financial services

 

Company name: Previous approval required. Application rejected if the name is the same or very similar to existing company name

Taxation: The LC is subject to income tax over its worldwide income from sources specified within the Income Tax laws of 2002

 

Double Tax Treaty Network: Party to double tax treaties with around 45 countries (as per end 2010)

Registered Agent / Office: Must maintain a registered office address in Cyprus

 

Shareholders: Minimum number: One
Publicly accessible records: Yes
Disclosure of Beneficial Owner: Not publicly available

Directors: Minimum: One
Nationality: no restriction
Publicly accessible records: Yes
Location of meetings:  Anywhere, from tax point of view usually advisable to be in Cyprus
Secretary: Local  (not a legislative requirement but practically necessary)
Share capital: No minimum required
Annual Reporting: Must file Annual Return and Annual Accounts.  Filing of audited accounts is required for income tax purposes.
 

 

Advantages of Cyprus Company formation:



1. Cyprus has been a full member of EU since 2004 year.

2. More then 30 treaties for the avoidance of double taxation signed between Cyprus and other countries.

3. Low corporate tax paid by a Cyprus company.

4. VAT registration.

5. No withholding taxes imposed on dividends, inters and royalties for non-residents (whether a company or an individual).

6. An execellent legal and economic infrastructure, a legal system is founded on the English legal system.

7. Cyprus does not have any rules stating that holding companies cannot perform operating activities.

8. Efficient banking services.

9. Low Company formation and operating cost.



Our Company provide clients with strategic Cyprus tax, planing advice and help our clients to choose the appropriate legal vehicle for their purpose to avoid needless liabilities.