Company registration on Cyprus

OFFSHORE IN CYPRUS – CYPRUS COMPANY REGISTRATION – CYPRUS COMPANY FORMATION

Registration cost 1 945.00 USD
Company renewal cost 1 940.00 USD
Number of directors 1
Corporate tax12.5%
Paid Registered Capital 0.00
Mandatory reporting requirements Yes

Cyprus is an island in the Mediterranean with a population of less than 900,000.

Its official languages ​​are Greek, Turkish and English, the latter of which is widely used in business, industry and government.

Cyprus joined the European Union in 2004 and has shown significant economic growth over the past 15 years.

Cyprus has a long history as an international financial center and has the lowest corporate tax in Europe. A corporate tax for resident companies is 12.5%.

Although Cyprus is not the offshore tax territory any more, it remains a dream for many foreign investors. The reasons for this are an efficient and challenging business environment, combined with a low income tax rate of 12.5% ​​and EU membership.

KEY CHARACTERISTICS OF COMPANIES IN CYPRUS

The main advantages of Cypriot companies are the following:

  • Ready-made companies in Cyprus. 
  • The lowest corporate tax rate in the EU – 12.5%
  • 0% tax on dividends, interest and royalties
  • Holding structures income is not a subject for taxation
  • The ability to establish both a resident and non-resident structure
  • Business structuring opportunities for reducing corporate tax 
  • Extensive network of tax treaties and the applicability of EU Directives

CYPRUS LTD – TRADING COMPANY REGISTRATION IN CYPRUS

The company can be established for international trade purposes with the lowest taxes in Europe (12.5%) on their net profit. In addition, there are no withholding taxes as for the payment of dividends to non-resident shareholders.

If management and control is exercised abroad, then a Cypriot company may not be taxed in Cyprus. This type of company is useful for trading purposes. However, it cannot benefit from any double tax treaties and cannot receive any tax certificates stating that the company is resident/taxed in Cyprus.

MAIN ADVANTAGES

  • Ready-made companies. 
  • The lowest corporate tax rate in the EU – 12.5%
  • There are no minimum registered capital requirements. You should have € 1000 of issued share capital
  • Minimum 1 shareholder, 1 director and 1 secretary. Nominee service is permitted by law.
  • VAT registration within 5 working days.
  • Possibility of structuring to reduce corporate tax.

CYPRUS LTD HOLDING

Talking about holding companies, the following should be mentioned. In case the minimum requirements are met, the company can pay 0% of the dividend tax rate received by foreign subsidiaries.

MAIN ADVANTAGES

  • Ready-made companies. 
  • Foreign dividends are exempt from taxation.
  • Income tax on dividends, interest and royalties paid to non-resident individuals or corporate clients is 0%.
  • Profits from the sale of shares are exempt from capital profit tax.
  • Applicability of the EU Parent and Subsidiary Directive and an extensive list of treaties for the avoidance of double taxation.

CYPRUS COMPANIES TAXATION

CORPORATE INCOME TAX (CIT): the standard rate is 12.5%. Since 2013, an annual Special Levy Tax of € 350 has been applied to all companies registered in Cyprus in the Registrar of Companies.

DIVIDENDS: incoming is 0%.

Capital Profit Tax (CPT): 0%.

Repatriation Tax, Royalty: 0%.

DIVIDENDS: dividends paid to non-residents for the use of rights outside Cyprus are exempt from withholding tax.

INTEREST: 0%

BILATERAL tax agreements with 48 countries, including almost all CIS countries, China, Singapore, Malta and Denmark.

VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for domestic sales is 19%.

A Cyprus offshore company submits annually the following:

  • Declaration as for the payment of taxes;
  • Auditor’s report;
  • Accounting report in Greek;
  • Company report, which contains information about the director, secretary and shareholders of the company.

USEFUL ADVANTAGES OF OFFSHORE COMPANIES IN CYPRUS

  • Cyprus resident company will not pay corporate tax selling the corporate rights of a company
  • Property tax is not levied if the property value is less than € 300,000. There are also many exceptions for real estate depending on region
  • It is possible to use agency schemes for the company’s work, through which you can transfer the company’s profits to non-resident partners without paying taxes.

COMPANY DOCUMENTS:

  • COI (in English) – Certificate of Incorporation
  • COI (in Greek) – Certificate of Incorporation
  • Apostilled stitching of the Company’s constituent documents 
  • Resolution on the appointment of the first director of the company
  • Certificate of Appointment of Director and Company Secretary
  • Shareholder Certificate
  • Registration Address Certificate
  • Minutes of the first meeting of the Board of Directors
  • Share Certificate
  • Commercial Purity Certificate

Cost of services of a nominee director and shareholder is 850 USD.

DOCUMENTS FOR USING THE NOMINAL SERVICE:

  • Power of attorney
  • A letter of exemption from the Nominee Director
  • Rejection letter from the Secretary
  • Declaration of the Nominee Director as for the provision of nominee services
  • Deed of Indemnity
  • Trust Declaration from the Nominee Shareholder
  • Instrument of Transfer 

If you need to register a company in Cyprus, our specialists will help you register a company in Cyprus quickly and efficiently. In addition, you can buy a ready-made company in Cyprus. Write to us in the CRM form and we will help you to register a company in Cyprus.

Eternity Law International specialists will provide you with expert advice on the acquisition of an offshore company and as for opening a bank account in any jurisdiction. We offer ready-made offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or fill out and send us the form at the bottom of the page.

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