About Cyprus Companies

Forming a Cyprus Ltd Company will allow you to start operating  in a very short time, enjoying immediately all the significant exemptions and advantages of Cyprus Tax regime.

The company formation process starts with the application of the name for approval within 3 working days and the registration is completed in maximum eight (8) working days.

The law also 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.

Read below the relevant information about the characteristics, the procedure of forming a Cyprus company, the documentation and time needed.

CHARACTERISTICS

The basic Characteristics of a Cyprus company

Cyprus since 1st of May 2004 has become a part of the European Union, therefore the Cypriot companies are not considered offshore. The basic characteristics of Cyprus Companies 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.
  • Shares 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.

 

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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.

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THE PROCEDURE
  • Application and registration
    The 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 timewasting 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 usually apply couple of name alternatives so we have more chances to be approved from the Company Registrar department.
  • Registration Timeframe
    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 timeframe, with the issuing of all the approved documentation including the Company Memorandum and articles of association.
DOCUMENTATION

Documentation needed

  • A valid ID or Passport
  • A valid and recent original utility bill (or a copy).
  • Reference from a bank institution, lawyer or accountant for the good standing of the ultimate beneficial owners.
  • Our firms Questionnaire completed from the client.
TIMELINE

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ADVANTAGES

Cyprus company formation offers many tax related advantages such as the low tax rate of 12,5% and also the 0% tax  on the share of dividends.

Other advantages are the low fee for the formation, the secure bank system and of course the free transfer of capital.

Tax advantages

  • 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