General Information about Company Formation in Cyprus
Cyprus has to be avoided for the import-export operations in Europe because products can not transit through the country as this is an island. Tax services will always require transport documents and if you can not produce them it will be a problem. For all other activities, Cyprus is a destination of choice.
You will be able to quickly get a number of intra-community VAT in Cyprus. The VAT rate on the island is 19%, it is one of the lowest rates in Europe.
Since joining the EU in 2004, Cyprus has become one of the most attractive offshore jurisdictions in Europe because of it’s low tax rate.
The cypriot corporate tax rate is 12.5 % this is one of the lowest rates in europe.
This rate is effective on all company profits generated worldwide. In the event that the company is only used as a “holding company” (e.g to hold shares in other companies), the company will not be imposed.
Accounting and auditing of Cyprus company are required each year.
To obtain a Cypriot tax identification number, it is necessary that the majority of directors are resident in Cyprus. In this case we recommend that you use the services of nominee directors.
The following income will not be taxable in Cyprus:
• Trading profits
Possible deductions are:
• Charitable Donations
• The Expenses
• All expenses related to the maintenance of a building, an office
Cyprus (Republic of Cyprus) is an island located at the eastern end of the Mediterranean Sea. His political status is very complex because it is divided into three blocks: the Republic of Cyprus, Turkish Republic of Northern Cyprus and the British side. Although located outside Europe, the country is still part of the European Union since few years.
Cyprus is Onshore
Cyprus is a popular onshore destination due to a very advantageous taxation. I’ts a member of the European Union. It is thus possible with a Cypriot company to conducting business activities in Europe. You can also have a VAT number in Cyprus if you wish to
The Cypriot Act is modeled on the British system of common law. TheCypriot companies are onshore, they are IBC (International Business Company) with limited liability. The minimum capital to be paid up must be at least EUR 1 000.
You should note that to avoid taxation on profits of your company, the management and control of the company should certainly not be made from Cyprus.
To avoid taxation on profits here’s what not to do:
• Important decisions concerning the company are taken in Cyprus
• That the majority of members of the society living in the country for more than 183 days a year
If you need a bank account in Cyprus for your company we can open it, we work with several banks in Cyprus which are reliable and offer all the services you would expect from an international bank.
Onshore Company Formation in Cyprus takes 1-2 weeks
Types of onshore companies in Cyprus:
Private Company Limited by Shares(Ltd) is the most used (this is the one we offer)
We can of course provide you other types of companies in Cyprus, if you are interested by another type, please contact one of our advisors to discuss with him about it.
1. Time to set up onshore company in Cyprus: 10-15 days.
2. Shelf company available.
3. Accounting is mandatory
4. Nominee Shareholder possible.
5. Nominee Director (Mandatory).
Type of offshore company:
(Ltd) – Private Company Limited by Shares
The names of directors and shareholders are published (public)
Confidentiality is guaranteed
Accounting/Audit are mandatory
Taxation is Between 10% and 12.5%
Capital requirement € 1000
Number of Directors / Shareholders:
Minimum 1 Director and 1 Shareholder
Bearer Shares not permitted
The Bar Association of Cyprus is the supervisory authority
Detention of real estate property
Detention and exploitation of IP
Organizing Your Estate