Before opening a business in Cyprus, read the material of this article.
After joining the EU, Cyprus opens up great opportunities for international entrepreneurs, who would like to register a Cyprus company. After opening a company in Cyprus, you will have access to a tax regime, aimed at optimizing taxes.
Advantages of establishing a firm in Cyprus
- a corporate tax is only 12,5%;
- no tax on dividends, on profits from trading in securities, from the sale of real estate abroad;
- an income tax from intellectual property is 2%.
A legal form
You can open an enterprise in Cyprus of such type:
- an Ltd;
- a PLC;
- an OJSC;
- a GP;
- a LP;
- a branch of a foreign company.
The most popular form in Cyprus is Ltd.
Registering Ltd in Cyprus
- First of all, you must register a unique name in the Register of Companies. A name may be presented in any language with a translation into Greek/English. “Limited” or “Ltd” should be mentioned at the end.
- A min. number of shareholders is one, a maximum is fifty. Shares cannot be immediately put up for sale to the public, when opening a company in Cyprus.
- Bearer shares are not permitted. A minimum value of each share is 1 EUR. Share denominations may be in EUR or any other international currency.
- A minimum capital is 1 EUR. At the time of opening a Cyprus company, the tax is 0,6%, which is paid only once.
- Shareholders of the company are liable for debts of the company only for the amount of their initial investment in a capital.
- A minimum number of directors is 1. A maximum number of directors is not prescribed by law. Most directors must be local tax residents.
- A secretary must be appointed.
- Opening a bank account in Cyprus is possible in just a few days.
- Financial statements must be submitted in the form of HE 32 once a year to the Register.
Please note: it is necessary to obtain a license in Cyprus, a registration of which takes from 5 working days.
A Charter is an agreement, that governs relations between shareholders, directors and a secretary. A Charter may be amended, that relate to:
- Dividend payments;
- Extraordinary shareholders meetings;
- Voting rights on the Board of directors;
- Rights of shareholders to change directors and secretary;
- The company’s ability to receive loans and give loans to directors.
- A company liquidation voluntarily or by court order.
Memorandum of Association
A MOA is an official document, that displays:
- A company name.
- A company line of business. Any activity, not included in the MOA, is an abuse of authority, therefore, it is invalid/disputed.
- A registered office, that must be physically located in Macau.
- MOA also indicates capital requirements.
- Data of shareholders.
How to register a company in Cyprus?
If you want to establish an enterprise in Cyprus, you need to provide our lawyers with the following documents:
- A registration certificate;
- Photocopies of shareholders passports;
- MOA and a Charter;
- An approved name in the Register;
- A bank statement.
If the shareholder/director is another company, then documents of such enterprise, its directors/shareholders/secretary are required.
Please note: all documents must be executed in Greek/English, must be certified by a notary.
A taxation in Cyprus
- A corporate tax is 12,5%, which non-residents pay on income, received in Cyprus, residents from all sources.
- A VAT is 0-19%, (0% is used by exporters, 5% when selling products, medicines, books, 9% is paid by the owners of hotels, restaurants, transport companies);
- An intellectual property income tax is 2%.
- A tax to the Defense Fund is 3-30% (only residents pay).
- A capital gains tax is 20% (it is paid, when selling real estate, shares).
If you decide to set up a company in Cyprus, pay attention to a mandatory annual reports:
- A tax return;
- A financial report in Greek;
- An annual report.
Mandatory requirements for registering Cyprus companies
- any person, regardless of citizenship or place of residence, may be a director/shareholder;
- shareholders can be individuals or legal entities;
- the availability of a local registered office;
- an appointment of a local secretary is mandatory.
Why should you open a business in Cyprus?
- A success of Cyprus in a progressive legislation, a flexible tax system, a developed network of financial services. The Government of Cyprus is committed to providing access to highly developed markets.
- Cyprus is the gateway to investment in the European Union, Eastern Europe, Asia and Africa.
- It is a member of the EU, a European Monetary Union.
- Qualified staff.
- Access to an extensive network of double taxation treaties, that effectively structure tax investments.
- Collective investments can be listed on the Cyprus Stock Exchange and other recognized EU exchanges.
- Extended telecommunications network.
If you are interested in registering a company in Cyprus, you have the opportunity to realize an intention with IQD Consulting lawyers. Our experts will also help you to open a corporate account with banks in Cyprus, as well as to obtain a license in Cyprus. Use any form of feedback.
The information outlined in the article is actual at the time of its publication.
Please refer to our specialists for checking possible solutions for your business.
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