:
registration of legal entity

Cost of registration The cost of the second year Number of Directors The tax on profits of legal persons Payment of Charter Capital Financial statements
1995.00 USD 1990.00 USD 1 12.50% No Да

Registration of a company on Cyprus

Registration of company on Cyprus

The Republic of Cyprus is the third largest Mediterranean island. Its population is approximately 800.000 people.

Cyprus is poetically referred to as"country with big heart", "island of love and beauty", "paradise", etc. In fact, Cyprus is extremely diverse and therefore attracts people with opposite tastes and controversial views.

The main part of the Cyprus population is represented by Greek Cypriots (they comprise about 78% of the general population), and Arabs (18%). It is interesting to note that roughly 94% of Cypriots are educated people. Therefore, the cultural life of the republic is rich and diverse. After all, the place, where the Greek goddess Aphrodite appeared on the coast from sea foam, could not be anything else!

Many myths and legends are interwoven with reality in Cyprus. In addition, the island has an excellent climate, which contributes to the development of tourism in the resort sphere. Stable weather, warm winds, and predominantly sunny days are the main characteristics of the climate of Cyprus. Ski resorts thrive there in the winter months as well.

Cyprus is also characterized by the contrast, namely: contemporary hotel complexes are adjacent to pristine nature.

But for modern businessmen, Cyprus is not only place of resort. Many entrepreneurs tend to register offshore company there. It should be noted that nowadays Cyprus is not an offshore zone in a traditional sense. The reason is that companies in Cyprus must undergo the state registration procedure, submit financial statements and hold annual shareholders' meetings.

Nevertheless, there are many advantages of offshore registration in Cyprus:

  1. Far more stronger international reputation of the island in comparison to other classic offshore jurisdictions. It is not included in the "black list" of world offshore companies.
  2. Cyprus has signed agreements on double taxation with 40 countries.
  3. The financial statements in Cyprus must be submitted in accordance with international standards.
  4. Cyprus has one of the lowest tax rates in Europe.
  5. Many categories of expenses can be referred to prime cost.
  6. Extremely favourable conditions for the development of holding companies (there is no consolidation tax, and the activity of a controlled foreign company is not regulated).
  7. No tax on internainternall/external dividends, on capital gains, on income from sales of securities.
  8. Simplicity of the registration procedure, and the low cost of maintaining the company.
  9. Possibility to trade with European companies (obtaining the VAT number).
  10. Convenience to operate with loans via Cyprus offshore company.
  11. No currency control.
  12. If foreign experts of an offshore company in Cyprus work beyond the jurisdiction, they pay an income tax varying from 0% to 2%.
  13. Non-resident of Cyprus, who is the successor to the estate, is not subject to taxation.
  14. The possibility of using nominal service.
  15. Losses can be rolled over to subsequent tax periods until they are covered by income.

Forms of doing business in Cyprus

An offshore company in Cyprus can be registered only as limited liability company. It is convenient for investors and owners of share of other companies.

The legislative framework.

The activity of an offshore company in Cyprus, including the establishment of a company, its functioning and liquidation, are regulated by the Law on Companies. The basis of the law was British legislation, with amendments and additions adopted.

In accordance with the amendments made in 2003, the distinction between local undertakings and offshore companies in Cyprus was erased in terms of taxation principles. The status of the company is important, namely the fact whether the company is resident or non-resident in Cyprus. At the same time, tax resident is a company which has management in Cyprus (in fact, it is enough that directors are tax residents or citizens of Cyprus). Resident is a natural person, whose presence within the territory of jurisdiction is more than 183 days during the year.

Organizational requirements for an offshore company in Cyprus:

  1. Number of directors is at least one;
  2. Number of shareholders is at least one;
  3. Both individuals and legal persons can be directors;
  4. The presence of registered office in Cyprus is binding;
  5. A company shall have a secretary;
  6. The use of nominal service is allowed.

Limitation regarding doing business concerns banking, insurance activities, as well as providing financial services without obtaining special permit.

Company name

  • A company name can be prepared in any language with the use of Roman or Greek alphabet, provided that the translation into Greek or English is submitted. At the same time, the name should be officially recognized as euphonic.
  • It is prohibited to use names similar or analogous to existing ones.
  • The names containing hint of illegality or the connection with the patronage of royal families will not be registered.
  • The companies with names containing such words as "trust", "bank", "insurance", "reinsurance" are subject to licensing.
  • The name should end with the word “Limited (Ltd)”.

MANAGEMENT OF THE COMPANY IN CYPRUS

In accordance with the norms of the legal system of Cyprus, control over the activities of the enterprise is carried out via voting at the shareholders' meeting. At the same time, entitling documents retain the right for daily control over the board of directors.

In order to steer clear from illegal actions of the director, the shareholders of a company are entitled to impose restrictions on his authority.

In order to retain the status of an offshore company in Cyprus, the enterprise shall conduct business activities, and the shareholders’ meetings should take place beyond the jurisdiction.

It is important for resident company that all decisions are made within the territory of Cyprus.

Peculiarities of the company in Cyprus:

  • Information about beneficial owner and shareholders is public and stored in the central bank of the Republic of Cyprus.
  • If the identification of the owner of the company can lead to any negative consequences, it is necessary to preserve the anonymity of the data. This can be achieved by applying mechanism for the use of bearer shares or trust declaration.

TAXES IN CYPRUS

The Cyprus company pays the following types of taxes:

  • income tax (12.5%, the rate was set in 2013);
  • for license fee (2.5%).

The income from dividends and transactions with securities are not subject to taxation.

Company reporting.

Offshore in Cyprus shall annually submit:

  1. Tax return;
  2. Financial statements containing report of an independent auditor;
  3. Financial report compiled in Greek;
  4. Annual report containing information on shareholders, secretaries, directors.

The first three types of reporting are submitted to the Tax Department of Cyprus, and the report in Greek to the Registration Chamber.

Even in the absence of dynamic activities of the company and lack of accrued taxes, an offshore company in Cyprus shall submit reporting certified by the auditor.

The means of preservation of the capital and increasing the income of a Cyprus company:

  1. In case of sale of its shares, a resident company does not pay income tax.
  2. The company is obliged to pay tax only on the real estate that is located in the territory of a particular region. And if the value of property does not exceed € 300,000, no tax will be charged.
  3. No tax is levied on transferring profits to foreign partner by resident company.
  4. The profits of subsidiary company owned by the parent's resident company are not subject to taxation. But dividends from the subsidiary are subject to 15% tax rate.
  5. Shipping companies in Cyprus do not pay income tax.

If registration of an offshore company in Cyprus is your top priority, we are ready to make it possible within the shortest time. Registering a company in Cyprus means starting legitimate and profitable business activity on international level. Registration of companies, including offshore companies, in different parts of the world is one of the main vectors of our work. It is cost-efficient to buy company in Cyprus!

Set of documents
   
  • Certificate of incorporation (English) 
  • Certificate of incorporation (Greek) 
  • Apostille of the bound set of copies of Constitutive documents 
  • Written Resolution of the Subscriber to the Memorandum of Association 
  • Certificate of Director and Secretary 
  • Certificate of Shareholders 
  • Certificate of Registered Address 
  • Minutes of the first Meeting of the Board of Directors 
  • Share Certiciates 
  • Non Trading Warranty 
Nominee director and shareholder
 

Price: +665 USD

 
  • Power of Attorney 
  • Director Resignation Letter 
  • Secretary Resignation Letter 
  • Nominee Director’s Declaration 
  • Deed of Indemnity 
  • Deed of Trust 
  • Instrument of Transfer 
  • Tax Certificate 
  • Certificate of Good Standing 

General information
Square9250.00
Population138071.00
CapitalNicosia
Unemployment5.10
State polityPresidential republic
Telephone code357
Place in the world in corruption30
locationAn island in the north eastern Mediterranean Sea
ClimateMediterranean with hot, dry summers and cool winters; avg. maximum temperature (August) +35°; avg. minimum temperature (January) 0°
Literacy rate97.60%
Ethnic groupsGreek Cypriots - 77%; Turkish Cypriots - 18%; other minorities - 5%
USD exchange rate0.75
GDP per capita47
Official languageGreek and Turkish
Credit ratingBB+
The judiciarySupreme Court (judges are appointed jointly by the President and Vice President)
Executive authorityCouncil of Ministers appointed jointly by the President and Vice President
Legislative authoritiesUnicameral parliament: House of Representatives (80 seats; 56 assigned to the Greek Cypriots, 24 to Turkish Cypriots, but only those assigned to Greek Cypriots are filled; members are elected by popular vote to serve five-year terms)
Corporate information
Opportunity to purchase ready-made companiesYes
Legal systemBased on English common law, with civil law modifications
Terms of purchasing ready-made company10 to 30 working days
The use of the Cyrillic alphabet in the nameNo
Local registered officeYes
Organizational and Legal FormsPrivate company limited by shares, Exempt private company, Public company limited by shares, Company limited by guarantee, Branch of overseas company, General partnership, Limited partnership, Sole Proprietorship, Trust
Terms of registration15 to 25 working days (3 to 6 working days with payment of acceleration fee)
Indication of BPA in the nameLimited or Ltd.
Prohibited expressions in the nameAsset Management, Asset Manager, Assurance, Bank, Banking, Broker(s),Brokerage, Capital, Credit, Currency(ies), Custodian(s), Custody, Dealer(s), Dealing, Deposit(s), Derivative(s), Exchange, Fiduciary(ies), Finance, Financial, Fund(s), Future(s), Insurance, Lending, Loan(s), Lender(s), Option(s), Pension(s), Portfolio, Reserve, Savings, Security(ies), Stock, Trust, Trustees
Local registered agentNo
The information required to be kept at the registered officeRegister of directors and secretaries; register of members; books containing the minutes of any general meeting; register of holders of debentures; copies of instruments creating charges and mortgages, register of charges, book of mortgages, other
Shares and share capital
Standard currencyEUR
The minimum amount of the issued capital1 share
Bearer sharesNo
Terms of payment of the issued capitalImmediately after the release, or in the terms stipulated by the terms of issue and specified in the relevant decision on the issue
Terms of capital paymentNo restrictions
Possibility to issue shares without par valueNo
Taxation
VATYes
Min. income tax rate for legal. persons10.00%
Capital gains taxYes
Withholding taxYes
Currency controlNo
The tax on personal incomeThe first EUR 19,500 - tax free, progressive tax rates up to 35% on remaining amounts
The tax on profits of legal persons (Details)10%
Stamp dutyYes
Other taxesSpecial defence contribution tax, Immovable property tax, Social insurance contributions, Social Cohesion Fund contributions, Motor vehicle tax, Import and excise duties, Immovable property transfer fees
Director and Secretary
Minimum number of directors1
The requirement for residency directorsNo
Director of legal entities are allowedYes
The data reveals to the local agentYes
Data field to the public registryYes
Meeting / regularity / placeNo restrictions
The requirement for the presence of the SecretaryYes
Requirement to the residense of the SecretaryNo
Requirements to qualification of the SecretaryNo
Legal entity as the SecretaryYes
Shareholder and beneficiary
Minimum number of shareholders1
Data is entered in the public registerYes
Shareholders residency requirementNo
Information about the beneficiary is disclosedNo
Information may be disclosed to the local agentYes
Shareholders-legal entities are acceptableYes
Собрания, регулярность проведения, место проведенияYes / annually / no restrictions
Reporting
The requirement for filing reportsYes
Open access to reportsYes
Statutory auditYes
The requirement for filing Annual ReturnYes
Open access to the Annual ReturnYes
The requirement for reportsYes
Treaty on avoidance of double taxation (States which signed)45
Membership in the OECDNo
Is it offshore according to Russian legislationYes
Trademark Registration
TM Comprehensive Study TM Registration Request TM Registration Certificate Total
First Class Additional Class First Class Additional Class First Class Additional Class First Class Additional Class
153.00 153.00 743.40 743.40 230.40 0.00 1126.80 USD 896.40 USD
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