Frequently Asked Questions
Why should you choose Cyprus for doing business?
Facts and Advantages
About Cyprus Companies
It normally takes about 10 days to incorporate a new company in Cyprus
Please estimate additional 3 days to approve by the Registrar the name for your future company
Alternatively, you may request from us a list of already approved names.
Already established companies (Shelf Companies) are available at any time of request and could be immediately used.
Cyprus Shelf Companies especially if they are two or three or even more years old, can give your business more value and more credibility to Bankers, business associates, clients, lawyers, and accountants etc. as the more years a company appears to be on the market the more credibility it bears. With a Cyprus Shelf Companies you can start trading fast
Please send us an e-mail requesting the list of available shelf companies.
No, you don’t have to. All communication and documents exchange can be done via e-mail, fax or courier in case of originals.
For private companies the maximum is fifty
You do not have to, but it is strongly recommended, because a bank account becomes an additional evidence of the fact that the company is managed and controlled from Cyprus.
It is important since only companies that are managed and controlled from Cyprus are considered Cyprus tax residents and enjoy the relevant advantages
Classes of shares permitted
Classification of Cyprus companies:
Companies Limited by shares
The liability of the shareholders is limited to the amount, if any, unpaid on the nominal value of the shares they have taken up or in case the shares issued at a premium, to their nominal value. Once the shares are fully paid there is in general no future liability.
The liability of each member is limited to the amount guaranteed to be contributed to the company in the event the company goes into liquidation. Such companies are usually non-profit organizations.
Is a Company which by its Articles of Association:
- Restricts the right to transfer of its shares and;
- Limits the number of its shareholders to 50 and;
- Prohibits invitation to the public to subscribe for its shares or debentures
A public Company must have at least 7 shareholders (there is no maximum) and 2 directors.
Have a statutorily prescribed minimum capital
Obtain a Trading Certificate by the Registrar of Companies before commencing business and issue a prospectus before issuing any shares or debentures to the public
Have a name ends with the word ‘’Public Limited’’ or ‘’Plc’’
The director is advisable to be a Cyprus tax resident for establishing Cyprus residence so as to benefit from the Cyprus beneficial tax regime.
No restrictions. Regulated by the Articles of Association. Alternate directors are permitted.
The secretary is advisable to be a Cyprus tax resident for establishing Cyprus residence so as to benefit from the Cyprus beneficial tax regime.
Yes. The company’s registered office should be based in Cyprus
You can remain fully anonymous by appointing nominee shareholders, directors and a secretary. The interest of the beneficial shareholder can be safeguarded by the issue of a declaration of trust by the nominee in favour of the beneficial shareholder or shareholders.
Where nominees are used, the disclosure of the beneficial shareholders is not a matter of public record, and the names do not need to be disclosed.
The directors of the company will however when opening a corporate bank account be required to disclose the ultimate beneficial shareholders of the company. The disclosure of this information to the bank does not mean that the information is available to the public. The Banks will never disclose information to anyone unless specifically requested to do following a particular order issued by the courts of law in Cyprus.
The registration of a company in Cyprus, requires that the company’s file at the Registrar’s office must contain the details of the directors, shareholders, company secretary, and registered office. This information is open to inspection by the public. By appointing nominee directors and shareholders (i.e. persons to act on behalf of the beneficial owners), the identity of the beneficial owners of the company remains private. The identity of the beneficial owners will only be disclosed to a local bank if the company chooses to set up a bank account in Cyprus. No information relating to the identity of the beneficial owners is disclosed to any third party or government authority, unless it is in relation to a properly authorized criminal investigation.
If you choose to appoint nominee Directors and/or Shareholders, then for your protection you will get the document known as ‘Declaration of Trust’ signed by the Nominee Shareholder indicating that he is holding the shares in a trustee capacity and that he has no rights on those shares.
As the officers of the company (Directors and Secretary) are controlled by the shareholders of the company, the above Trustee document enables the clients to remove the Directors. Same applies to the company Secretary.
The most popular form is the use of Cyprus companies as holding company. But Cyprus companies are also used a lot for trading, financing and licensing activities.
The Cyprus Holding Company is used as a vehicle which holds shares in other companies and enjoys the following main advantages:
No tax on profits and gains, which results from the disposal of titles (shares, bonds, debentures etc)
Access to the ‘’EU Parent-Subsidiary Directive’, which may ascertain withholding tax exemption for dividend payments between EU-companies
Access to an Extensive Double Tax Treaty network
Income from dividends is exempt from tax (in most cases)
Cyprus does not levy withholding tax over outbound dividends, interest and royalties
No tax is imposed on the liquidation of a Cypriot company owned by non-resident shareholders or by non-domicile resident shareholders.
The current year tax loss of one company can be set off against the current year taxable profit of another company part of a group which is tax-resident in Cyprus
As a rule, all Cyprus companies, whether Cyprus tax resident or not, are obliged to prepare financial statements according to International Financial Reporting Standards. These must be filed with the Registrar of Companies.
Also, based on the results of the financial statements, the annual tax returns must be prepared and filed with the Income Tax authorities
Accounts audited by accountants practicing in Cyprus.
What is the corporate income tax rate for Cyprus Company?
Cyprus maintains one of the lowest corporate regime at the rate of 12.5% on clean profits of the company minus expenses.
Cyprus has various double tax treaties to avoid double taxation.
In particular, extremely favourable treaties have been concluded with many countries for receipt of dividends, interest and royalty payments.
About Cyprus TAX
Individual tax residents in Cyprus are liable to income tax in respect of their worldwide income. An individual is resident in Cyprus, if he/she resides therein for a period or more which in aggregate exceed 183 days. Non-tax residents are liable to tax in respect of Cyprus source income only. However, non-tax residents having a permanent establishment in Cyprus may elect, if it is to their benefit, to be taxed in accordance with the provisions applicable to tax residents. The income liable to income tax includes, inter alia, trade income, income from salaried services, pensions, interest, dividends, royalties, any amounts of trade goodwil, etc. The Law stipulates for various exemptions, provided certain conditions are satisfied.
The Immovable Property Tax in Cyprus was abolished as of 1 January 2017.
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