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Company registration in Cyprus in 2020:
Opening a business in Cyprus has several advantages, and the key of them are:
- Popular jurisdiction;
- Ease of doing business;
- Local laws are based on Common Law;
- Simple conditions of the real estate acquisition for non-residents;
- Possibility of obtaining VAT payer status.
Company registration: from 3 490 EURDetailed information
Cyprus is an island state located in the Mediterranean Sea. It's territory is divided among three countries: the Turkish Republic of Northern Cyprus, Great Britain and the Republic of Cyprus.
Since 2004, Cyprus has been a part of the EU. Buying an existing company in Cyprus is a great solution for those who are interested in conducting a reputable business in Europe.
For more information, you can receive personal advisor on business organization process in Cyprus by calling our office.
Cyprus is very popular among investors from all over the world. Despite the fact that businesses there are subject to income tax of 12,5%, this is one of the lowest tax rates in Europe.
In general, it should be noted that buying an existing company in Cyprus provides ample opportunities for tax optimization.
For example, if the recipients of goods and services providing by your company are not residents of the EU, then you will be exempt from VAT.
In addition, if you decide to register a company in Cyprus, IQ Decision lawyers will help you to use it for obtaining citizenship in the European Union.
When planning to open your own business in Cyprus, note that there is no difference between tax rates for local companies and international business companies (IBC).
You can choose the following business forms:
- To register a non-resident company in Cyprus
The director can be both private person/legal entity (non-resident of Cyprus). All business activity and source of income should be outside Cyprus. Local loans to Cyprus firms are not allowed, and all local payments are controlled.
Annual invoices and reports are sent to the Central Bank. On innovations in the legislation, a non-resident company must pay taxes on net profit (12.5%), and must pay all other expenses and obligations.
If you want to set up a Cyprus company for non-resident, note that you will need to pay the tax on net profit (12,5%) and all other expenses and obligations.
- To register a resident company in Cyprus
The director can be a private person/company (resident of Cyprus), and a shareholder can be both a resident or non-resident (private person/company). Our specialists recommend that you set up an IBC in Cyprus and open a corporate account with a Cyprus bank.
If you want to conduct business as a fully fledged EU company, you can order a local nominee director services from IQ Decision lawyers. In this case, you will have an opportunity to register a VAT number and take advantage of DTA agreements.
To learn more, please request for individual advice on IBC registration procedure in Cyprus from IQ Decision experts.
Those who are interested in setting up a company in Cyprus, should consider the following:
- Your IBC will pay zero tax if you decide to open a non-resident Cyprus company, but will not be able to use DTA agreements;
- There are no taxes on dividends, interest payments, income and royalties from IBC and no capital gains tax (except the sale of Cyprus real estate) for individuals and legal entities;
- The secretary (resident/non-resident) is appointed by the director and recognized by law as an officer of the company. The role of the secretary is to comply with the Articles of Association. In addition, he keeps minutes of meetings;
- If you are intended to register an IBC in Cyprus, then you can open a Cyprus company account in any currency;
- Reorganization and mergers (takeovers) of companies are not subject to taxation;
- There is no currency control, but note that Cyprus banks have tightened transaction verification conditions.
Also, you can open a bank account in Cyprus and register a company in Cyprus remotely. The terms of incorporation: about 2 weeks.
Advantages of registering a Cyprus company:
- Cyprus is not included in any of the “black lists” of offshore jurisdictions;
- Any documents apostilled in Cyprus are recognized worldwide;
- The country has signed more than 50 DTA agreements;
- There are no securities sale tax, capital gains tax and inheritance tax in the case of setting up a non-resident Cyprus company;
- After opening a company in Cyprus, you will obtain a VAT number that allows you to cooperate with European counterparties.
If you have questions, please call our office and ask for advice on substance establishment in Cyprus or company registration process.
Also, IQ Decision lawyers can provide you with a legal support services on corporate account opening in Cyprus and nominee director services.
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.