The Cyprus Company

The carrier of your international success.

The Cyprus Company.
Formation procedure and Characteristics.

The Cyprus company’s significant tax advantages and precious tax exemptions are the main reasons corporations from around the world, choose the island as their base of operations .

The Cyprus company formation procedure is simple, fast. You can start operating in approximately 7-10 days. The process starts with the application of the name for approval within 3 working days and the registration is completed in approximately eight working days.

The Cyprus law allows the movement of the operating headquarters to or off Cyprus. The regulations give the opportunity to investors, entrepreneurs and international companies to become Cyprus tax residents and benefit from the attractive local tax regime.

The basic characteristics of Cyprus Company can be described as below:

Memorandum and articles of Association.

Cypriot companies must possess a memorandum and article of association that will determine the activities of the company and how the establishment will regulate its internal affairs.

Share Capital.

There is no legal regulation restriction on the minimum or maximum share capital of the company. Capital duty of 0.6% on the nominal capital is paid to the Government by the registration of the company and in every subsequent increase on any amount of Nominal capital.

Shareholders.

In accordance with Cyprus law, limited liability companies must have at least one shareholder. If you wish to preserve the anonymity of shareholders, the shares may be held by a company which acts as a trustee of the shares of the owners, without revealing their real identity. The confidentiality of such information is kept and a decision by Cyprus court is required before disclosure.

Board of Directors

Although the appointment of local board members is not required by law, however, for tax purposes, it is considered desirable. It should be noted that, from a tax point of view, is essential that the company is managed and controlled in Cyprus, which is why it is recommended that the majority of directors are local residents.

Secretary

According to the current law, the company must have a secretary named.

Registered address

The law requires the company to have a registered office in Cyprus, which will be used as the commercial address of the company for conducting their operations.

The Cyprus Company registration procedure:

Application

The company registration procedure is completed within 7-8 working days and then, operation starts immediately assuring you will have a fair tax treatment on your profits without any delays or time wasting complications.

Company name

As a start we will have to apply for a company name.The procedure is easy, fast and the name is approved in 3 working days. We apply couple of name alternatives so we have more chances to be approved from the Company Registrar department.

Time frame of Registration

After the name approval we apply to the Cyprus Registrar department all the relevant documentation and paperwork.The examination of the application takes 4-5 working days and will be completed usually in 7 or 8 working days time frame, with the issuing of all the approved documentation including the Company Memorandum and articles of association

Tax Advantages of a Cyprus Company:

  • Low corporate tax rate 12,5% on profit
  • Dividend participation exemption
  • Exemption on disposal of securities (e.g. shares, bonds, debentures)
  • No withholding taxes on dividend, interest and royalty payments abroad
  • No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains is attributable to the real estate holding)
  • No succession taxes
  • Attractive IP regime
  • Tonnage tax for shipping companies
  • Notional interest deduction for investments into Cyprus companies
  • Personal tax exemptions for new residents and non-domiciled individual
  • More than 60 double tax treaties

Other Advantages:

  • Low formation fees
  • Secure bank system
  • Free move of capital
  • Use of English and Greek language
  • Full member of European Union
  • Member of United Nations
  • Legal framework attuned to the European Acquis Communautaire
  • Attuned legal legislation in accordance with OECD regulations
  • Stable legal and tax environment (based on the Anglo-Saxon law)
  • Double tax treaties with more than 55 countries
  • Modern infrastructure
  • Stable and modern public administration
  • Friendly and stable business environment for investors
  • High level of education and professional expertise

Should you require more information about Cyprus Company formation, get in touch with one of our specialists.

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