CYPRUS COMPANY FORMATIONS
Cyprus is an island in the far eastern Mediterranean It's a hub of the busy trade routes linking Western Europe with Middle East and North Africa. While Greek and Turkish are the two official languages, English is wide spread, especially in the business community. The country is a Western type democracy. The legal system is very close to "British Common Law, especially the corporate law.
Cyprus is not a classical "straight" tax haven, like the Bahamas, BVI, and many others; rather it's a well-recognized tax-incentive country with a wide network of" treaties for the avoidance of double taxation. It found a very distinctive niche among Offshore Financial Centers.
Our clients' favorite applications for Cyprus International Business Companies (IBC's) are as follows:
- A powerful and respectful vehicle for withholding tax exempt investments, international holdings structuring, making entry into and gaining new markets. Nearly 40 double taxation treaties having been ratified by Cyprus may be efficiently used for the above purposes.
- Worldwide commerce, transit via the island's seaports.
- A headquarters' company for administration of multinational operations with a real office in Cyprus (special extra tax and customs duties exemptions apply). The expatriate officers would receive a residence permit and substantial personal tax/customs relieves.
- A shipping company (Cyprus is one of the top maritime nations: its merchant fleet ranks 6th in the world).
- A publishing business with its principal office in Cyprus. The IBC can have books, magazines, flyers, etc. cost-effectively printed in the country, distribute them abroad, and enjoy a favorable tax and customs treatment.
Suffice it to say, some of the above applications and/or features are just unique in the offshore world.
The best offshore tool: International Business Company
|Advantages||Low taxation - 12.5% tax of net profit (since 2013) Has double tax treaties with the 33 countries.Hard constraint of confidentiality;|
|Disadvantages||Requirements: -bank reference to real owner of the company; -information about the shareholders: name, address, nationality, place of residence. But this information is confidential.|
|Corporative legislation||Companies Act - 1968, modification of act - 1977, 1979, 1985, 1986, and 1990;|
|Type of the company||IBC;|
|Authorized business activities||All and any activities not prohibited by the law, except banking, insurance, reinsurance, financial services;|
|Prohibited activities||Can not trade with resident individuals or companies situated in Cyprus;|
|Taxation||This integration contains a uniform corporation tax rate of 12.50%, payable by local and international business companies alike starting from 2013.
The dividends paid to the Cyprian tax residents are subject to the taxation under the rate of 15 % basing on prospective distribution of 70 % from 90 % of the profit, which remain after paying the 12.50 % corporate tax. Dividends paid to foreign corporations and foreign individuals will be exempt from withholding tax;
|Name of company||Name of the company must not be identical or confusingly similar to the existing ones;
The name must end on words Limited or Ltd;
|Equity capital of the company||The minimum amount of declared equity capital makes
|Recommended equity capital||5,000 CYP, divided into 1000 shares par value 1 CYP;|
|Shares||Emission of registered shares with par value only;|
- Minimum number
- Nominal shareholders
- Holders of trust equities
- Breakdown of shares when registering
|One, natural or legal entity;
Minimum number two;
|Does the law provide for non-disclosure of the information?
- About actual owner of the company
- About bank operations
- minimum number
- nationality and citizenship
|One natural or legal entity;
All the powers apart from those falling into the exclusive competence of members (determined by articles of association);
|On the territory of Cyprus there has to be
- registered office
- registered agent
- local secretary
Required (one natural or legal entity);
|Holding of the meeting of
Annual meeting required;
- keeping of accounting records
- annual account
- presentation of auditors conclusion
The company submits annual account to the Central Bank of Cyprus and declaration of profit to tax institutions;
|Information at disposal to the third party||Names and addresses of directors and shareholders, registration address, statute and memorandum, credit claim;|
|Documents held at registration office||Register of shareholders, directors and secretaries, credit claim;|
|Agreements on exemption from double taxation||All countries of CIS (except Georgia), Austria, Greece, Rumania, Bulgaria, Hungary, Canada, Ireland, Slovakia, Czech Republic, Italy, Sweden, Denmark, Kuwait, Great Britain, France, Norway, USA, Germany, Poland, lapsed Yugoslavia, China, Malta, Syria, Belgium, Egypt, Finland;|
|Term of incorporation||4 weeks;|
|Costs of registration of company||Look below|
|Financial year ending on:||In 60 days before the anniversary of incorporation/formation|
|Possibility to purchase a ready-made company||Yes|
- All financial statements data are kept in strict confidentiality by the Central Bank of Cyprus, and by Section 3 of the Central Bank Law 37, 1975 its employees are bound to secrecy.
- A Cypriot IBC is an effective tax planning vehicle when it is necessary to provide audited statements for some transactions and/or investments (i.e. tenders (bids), mergers and acquisitions, etc.)
Applicable legislation: Cyprus Companies Law CAP. 113, based on the UK Companies Act 1948.
CYPRUS INTERNATIONAL BUSINESS COMPANY FEES STRUCTURE
I. THE BASIC SET OF SERVICES AND DOCUMENTS:
The set includes the applicable Minimal Government Filing Fee, the first year Registered Office Fee, legalization by Apostille, Certificate of Incorporation, Memorandum & Articles of Association, Minutes with Appointment of Initial director(s), translation of the corporate documentation into English. Nominee Director services for a year completed with a General Power of Attorney with Apostille.
Courier delivery costs: 100 EUR
II. OPTIONAL SERVICES
Cyprus bank account 1,500 EUR
III. CYPRUS IBC ANNUAL FEES AND SERVICES
1. Registered office and annual return with nominee director: 1,800 EUR
2. Annual report: from 1,800 EUR
- We reserve the right to change fees without notice.
- The payment options are: WIRE TRANSFER