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Cyprus

Cyprus is a popular choice for Europeans with offshore trading activities because of its highly developed infrastructure and open market economy. The country is ranked as the world's 24th freest economy of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

Advantages

  • No withholding of tax on dividends
  • Tax exemption on profits of international business partnerships
  • All expenses incurred for the earning of income, as well as annual allowances on fixed assets, are allowed as a tax deduction
  • Estate duty exemption on inheritance of shares in an international business company
  • Capital gains tax exemption on capital gains, except on sale of immovable property situated in Cyprus
  • Exemption from local social insurance schemes in respect of foreign employees of international business entities
  • Stamp duty exemption on contracts entered into by international business entities
  • Foreign employees of international business entities providing their service in Cyprus, are liable to Cyprus income tax at a rate equal to half the normal Cyprus rates. Normal rates range from nil to 40% and, therefore, the maximum tax rate of such employees is 20%
  • Foreign employees of international business companies living and working outside Cyprus are exempt from income tax if they are paid through a bank operating in Cyprus. If such employees are paid directly abroad they are taxed at a rate equal to one-tenth of the standard rates and, therefore, their maximum tax rate is 4%
  • Import duty exemption for the importation or purchase of cars, office and household equipment for the use of the of the international business company and its foreign employees if the international business company maintains a fully fledged office in Cyprus
  • Residence and work permits for the foreign employees and residence permits for their families can be readily obtained if they maintain an office in Cyprus
  • Freely transferable currency accounts can be kept both in Cyprus and abroad
  • No exchange control restrictions
  • Company documents are produced in English as well as Greek
  • Company legislation is based on British company legislation, i.e. easy to follow
  • Corporation Tax is one of the lowest in the European Union at 10%

Limited Liability Company

Requirements

  • Only one director is required - can be an individual or corporate
  • A Cypriot company must appoint a company secretary
  • There is no requirement for Cypriot residency for shareholders and directors, although a resident nominee director is recommended
  • All Cyprus businesses need a registered office
  • Separate classes of shares with different rights to dividends are permitted

Authorised Share Capital

Unless otherwise instructed, we incorporate your Company with an authorised share capital of € 2000, divided into 2000 shares of € 1 par value each. There is no minimum share capital.

Registered Office Service

Every company must have a registered office. The registered office is where documents may be legally served on the company. The registered office must be a physical address in Cyprus.

Company name

It can take one or more days to get name clearence in Cyprus.

Nominee Services

A Cypriot resident director is recommended to take advantage of Double Taxation Treaties.

Nominee shareholders are allowed and anonymity can be achieved by the use of our nominee shareholder service.

In order to incorporate a Limited Company in Cyprus for you, we will require the following:

  • Your Company Name
  • The Directors' full name, date of birth, address and nationality
  • Shareholders' full name and address
  • The objects of the company, specifying the the principal activity
  • The amount of capital and the number of shares subscribed to each member