Cyprus is among the most important trade and investment centers in the EU and internationally. The considerable tax incentives coupled with limited red tape attract entrepreneurs and investors from all over the world. Another great advantage of setting up a company in Cyprus is that the island maintains the financial privileges of a tax haven while following all relevant EU regulations. In addition, Cyprus benefits from all EU treaties, regulations, directives and freedom of movement of capital as a full member state of the EU.
The most popular options for setting up a company in Cyprus are ready-to-use and tailor-made companies. A custom company is created from scratch. A plug-and-play company refers to an existing company that has been adapted for particular purposes.
The main advantages of establishing a company in Cyprus:
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A business-friendly tax regime and a double taxation agreement with more than 40 countries: Cyprus is a reliable jurisdiction and is on the OECD white list. In addition, Cyprus has adopted the International Financial Reporting Standards (IFRS). As mentioned above, Cyprus offers considerable tax incentives. The corporate tax rate in Cyprus is 12.5%, one of the lowest in the EU. Apart from the favorable tax regime, intercompany dividends are not taxed. Furthermore, when a Cyprus company allocates shares to subsidiaries or one of the associated companies, there is no tax liability. Cyprus has established double tax treaties with 45 countries. Double taxation agreements denote that in some cases taxes are not paid on capital gains, royalties, interest and dividends.
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Limited bureaucratic procedures: Incorporating a company in Cyprus is not complicated. Before proceeding with the incorporation process, the company name must be approved by the Registrar of Companies to ensure that there are no companies with a similar name.
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Opening a business bank account in Cyprus: Opening a business bank account in Cyprus is not complicated and can be done almost immediately. The presence of the directors of the company is not necessary. In case you want to open a bank account remotely, notarization and legislation of the documents of directors and shareholders of a Cyprus company is necessary.
Procedures and Documentation:
In Cyprus, a company is incorporated in approximately 10 to 18 business days. As noted, the company name must be approved by the Registrar of Companies. This will take 3-6 business days. The next step is to register the company. The entire registration process will take 5-8 business days. Please note that in case the documents are not in English, they must be translated, certified and apostilled.
NECESSARY DOCUMENTS:
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Each shareholder is required to submit a copy of their passport. Photographs, personal data and signatures must be visible.
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A document indicating the residential address of each shareholder. Please note that PO Boxes are not accepted as residential addresses.
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If the legal person is a shareholder of the company, then a copy of the certificate of incorporation and a copy of the certificate indicating the exact location of the company’s registered office must be submitted. A foreign company can be a shareholder.
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According to Cyprus Law, the company needs at least a director and a company secretary. Directors can be individuals or legal entities.
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Each employee of the company must present the following documents: A copy of the passport. The photograph, personal data and signature must be visible. A document indicating the residential address of each officer. As previously clarified, post office boxes are not accepted as postal addresses, and Directors must submit information about their profession. Likewise, Directors must inform if they have been appointed Directors in other companies. In this case, a simple “YES” or “NO” is enough.
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In case the officers of the company are another corporate entity, then each entity must submit a copy of the certificate of incorporation and a copy of the certificate indicating the exact location of the company’s premises.