Cyprus Company Formation
Benefits of a Cyprus International Company Formation
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Excellent reputation of the EU jurisdiction
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Fast and easy company formation process
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Low Corporate Profit Tax Rate 12,5%
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Double Tax Treaties with over 50 countries
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Ideal solution for the EU holding company
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Primary financial hub on intersection of Europe, Africa and Asia from £2,499.00
Why Set Up A Cyprus Company?
Cyprus is a renowned, low-tax jurisdiction with an excellent reputation and numerous advantages. These include the sound reputation of being an EU member state and low taxes. A Cyprus limited company is ideal as a holding European company due to its zero percent withholding tax rate.
Although the Cyprus business registry information is publicly available, it is fairly easy to set up a privacy arrangement through nominees or a trust.
Fast and easy EU company formation
The formation of Cyprus limited company only takes a few days and has a relatively simple incorporation process. Moreover, the level of corporate service in Cyprus is high in comparison to some other EU jurisdictions. With Glenmuir Trust, it is possible to register a company in Cyprus online without having to be present in person and as quickly as just 1-2 business days.
A Cyprus company search can be ordered as a separate service if more information about a company is required. This may be necessary to substantiate the company’s status and details to the business partners. It is also useful when you want to verify the Cyprus company of your counterparty before an important transaction.
Primary European Financial Centre
Another advantage is that a Cyprus company formation with bank account is much faster and simpler due to the island’s EU member status. It is possible to open a bank account with both local and international banks in the European Union. Cyprus banks offer a high standard of service with online banking and debit card issuance at all times. More information about opening a Cyprus bank account can be found on our website or from your consultant at Glenmuir Trust.
A further significant advantage of Cyprus company formation is the possibility of easily obtaining a European Union VAT tax number. Cyprus registration of VAT is much quicker and more straightforward than in other European countries.
Taxation of A Cyprus Company
A favourable tax regime and a comprehensive network of double tax treaties are the main benefits of incorporating in Cyprus.
Low-tax jurisdiction
The Cyprus company tax rate is one of the lowest in the EU. At 12.5%, the corporate tax rate in Cyprus is considered the third lowest in the EU.
To take advantage of the low tax benefits, a company needs to have its tax residency in Cyprus. To this end, the majority of the board or the sole director of a Cyprus company must also be a resident in Cyprus. Usually, this can be achieved by employing the services of a local Cypriot director.
On the contrary, a Cyprus offshore company whose principal management is based abroad is deemed to be non-resident. In such a case, the Cyprus non-resident company pays its taxes in the location of the directors and is exempted from Cyprus tax.
Participation exemption and a vast network of double tax treaties are among the benefits of registering a company in Cyprus.
Wide range of DDT agreements
At present, Cyprus has around 60 double tax treaties signed with other countries, such as the US, China, South Africa, Singapore, Russia, India and the UK.
One good reason to incorporate Cyprus company as a group holding is that the dividends received from subsidiaries are not subject to corporate tax in Cyprus. This applies to both an overseas subsidiary or another Cyprus resident company, subject to certain requirements being met. There is also no withholding tax on interest and dividends paid to foreign shareholders of a Cyprus company.
The main currency in Cyprus is the euro, and there are no exchange control restrictions. Furthermore, Cyprus is a member of the Single Euro Payments Area (SEPA), where it is possible to transfer money within just two working days.
Corporate Legislation in Cyprus
The legislation of Cyprus is based on English common law and equity principles.
The court of final appeal is the Supreme Court of Cyprus.
Cyprus company incorporation is regulated by the Cyprus Companies Law (Cap 113). On account of British influence, company law in Cyprus is largely based on the English Companies Act 1948.
The transformation after joining the EU
After joining the EU in 2004, the Cyprus international business company was abolished. Furthermore, the country did away with its 0% tax offshore jurisdiction and became a reputable member of the European Union’s single market, complying with all modern requirements. After switching to the onshore tax system, the IBC legal form was replaced by the classic limited liability company.
The Cyprus Department of Registrar of Companies and Official Receiver maintains the register of companies in Cyprus. Information about directors and shareholders held in the register is open to the public. Information on the legal status of companies, their registered office, and secretary is also recorded in the registrar of companies in Cyprus, which is freely accessible to the public.
The Company Registration in Cyprus Package Includes the Following Company Documents:
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Certificate of Incorporation issued by the Cyprus Registrar of Companies
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Memorandum of Association stamped by the Cyprus Registrar of Companies
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Articles of Association stamped by Cyprus Registrar of Companies
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Certificate of Registered Office
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Certificate of Directors
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Corporate Register;
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Written Resolution Adopted by the Sole Director of Shares Issuing;
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Share Certificate;
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Consent Letter of Director;
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Consent Letter of Secretary;
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Resolution of Director of Issuing the Power of Attorney (optionally);
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Power of Attorney for Company administration under Apostille (optionally);
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Power of Attorney for Banks under Apostille (optionally);
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Resolution of Subscriber;
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First Minutes.
** Payment Plan Also Available For New Incorporations
