Cyprus is one of the EU fastest growing economies with various business and investment opportunities. Cyprus from 2008 is a member of Eurozone, this allows your company established in Cyprus a full access to European markets and...
Why register company in Cyprus?
Market access in Cyprus
Cyprus is one of the European Union's fastest developing countries in economy and with rapidly growing GDP. From 2008 Cyprus is a member of Eurozone, which means that your company established in Cyprus gets a full access to EU market and more than 40 countries under European Trade Agreements.
High quality of living and geographical location makes Cyprus a popular destination for establishment of Shipping companies. Shipping companies in Cyprus get Competitive Tonnage Tax, rather than tax on their actual profit and an approved EU open registry, which provides stable fiscal environment for Cyprus Shipping industry.
Currently more than 3000 globally recognized finance, accounting, law and shipping companies are registered and pursuing business in Cyprus.
Tax regime in Cyprus
One of the most important factors for your business is tax, this is why you should choose a country with a friendly tax regime. With one of the lowest possible rates of corporate tax in EU - Cyprus may be the perfect place to register company.
Corporate tax in Cyprus is 12.5% on net profits.
Cyprus has one of the lowest VAT of 19%.
Cyprus has Double Tax Treaties with more than 60 countries, which would ensure that you are not double-taxed on your income from Cyprus.
But these are not the only benefits of tax regime in Cyprus:
- Dividend income exemption based on relaxed conditions.
- Capital gains tax exemption.
- No withholding tax on outgoing dividend, interest or royalty payments.
- Tax exemption for gains from trading in securities.
- Invest in equity of Cypriot company and get notional interest deduction.
- Foreign Exchange gains and losses are tax neutral.
- Especially attractive personal tax regime for international professionals and non-domiciled individuals.
- Tailor-made provisions for investment funds.
- Tax deductions if you invest in startup.
Low cost of doing business in Cyprus
With high standard of life Cyprus provides low labour cost for highly skilled professionals compared to other EU countries. Relatively low office rent and accommodation prices make Cyprus a perfect place for living and business.
No minimum investment required to start your business, register company in Cyprus now.
Privacy in Cyprus
Even though Cyprus has a transparent tax regime, there is a non-disclosure legislation in place providing a great degree of privacy for your business operations that in other EU countries.
Process of company registration in Cyprus
Name of the company
Firstly, decide on the name of your company to understand whether the same name will be approved by Registrar of Companies.
Decide on company type
Company types in Cyprus are the same as everywhere, most popular and recommended choice of legal entity for foreigner by EU LAW FIRM lawyers is Limited Liability Company (LLC) and holding company fully compliant with EU regulatory framework.
LLC in Cyprus has specific benefits especially attractive to foreigners:
NO CORPORATE TAX. As long as LLC is considered foreign owned, there will not be CIT imposed (e.g. on your income outside Cyprus if you work with foreign clients, your income in Cyprus would be taxed accordingly). If you are a foreigner from countries that tax global income - you must declare all income to their tax authorities.
LIMITED LIABILITY. The members of LLC liability is limited to their contributions.
UK CITIZENS. Due to Brexit you may want to shift your company to EU for many reasons. Cyprus also has common law, therefore there shall be no problem of adaptation to significantly different legal requirements. Although Greek is predominant language in Cyprus the majority of the population speaks English, therefore business in Cyprus may be the best place for UK citizens to shift their business to European Union.
The legal entities in Cyprus are:
- Private and public company
- General and limited Partnership
- European Company
- A branch of an overseas company having the same name as the parent company
You are not required to have a local Cypriot partner and you can establish your company without any minumum capital requirement. Minimum share capital of Cyprus company is 1,000 EUR, which you do not have to pay immediately to company's bank account.
Or you can get your company within a couple of days and get this company's bank account - buy business in Cyprus.
Please note that to do business in Cyprus locally, non-EU residents do need visa/work permit to move to Cyprus.
Share capital
As mentioned, there is no minimum required share capital for private companies in Cyprus, however shares can be either in EUR or any other currency of your choice.
Shareholders and other entities
Under the law of company formation, you shall have at least one registered shareholder.
Company registered in Cyprus shall have one company secretary.
There must be at least one director, the nationality of the director does not matter.
Registered office in Cyprus
To register company in Cyprus you shall have registered office (virtual offices now are available). If you do not have registered office for now - contact our lawyers for finding the best place where you can register business in Cyprus.
How long does it take to register company in Cyprus
Registration of your company in Cyprus takes 7-10 business days.
Documentation
Registering your company in Cyprus is a relatively complicated process if you are a foreigner, this is why it is necessary to find a lawyer to guide you through the company registration process and fill out the necessary documents.
You only will need:
- Bank reference letter;
- Proof of identity (ID card or passport verified by Law firm of Notary). For other possibilities of identification contact us;
- Other documents will be prepared by us.
We also offer accounting services in Cyprus. Including VAT registration in Cyprus, payroll in Cyprus, fiscal representation in Cyprus and all other related tax services.
If you need any advice or clarification on company formation in Cyprus, do not hesitate to contact EU LAW FIRM lawyers in Cyprus - info@eulawfirm.eu
You also can contact us on WhatsApp, Viber, Telegram and IMO +371 26742086
