Before opening a business in Cyprus, read the material of this article.
After joining the EU, Cyprus opens up great opportunities for international entrepreneurs, who would like to register a Cyprus company. After opening a company in Cyprus, you will have access to a tax regime, aimed at optimizing taxes.
- a corporate tax is only 12,5%;
- no tax on dividends, on profits from trading in securities, from the sale of real estate abroad;
- an income tax from intellectual property is 2%.
You can open an enterprise in Cyprus of such type:
- an Ltd;
- a PLC;
- an OJSC;
- a GP;
- a LP;
- a branch of a foreign company.
The most popular form in Cyprus is Ltd.
- First of all, you must register a unique name in the Register of Companies. A name may be presented in any language with a translation into Greek/English. “Limited” or “Ltd” should be mentioned at the end.
- A min. number of shareholders is one, a maximum is fifty. Shares cannot be immediately put up for sale to the public, when opening a company in Cyprus.
- Bearer shares are not permitted. A minimum value of each share is 1 EUR. Share denominations may be in EUR or any other international currency.
- A minimum capital is 1 EUR. At the time of opening a Cyprus company, the tax is 0,6%, which is paid only once.
- Shareholders of the company are liable for debts of the company only for the amount of their initial investment in a capital.
- A minimum number of directors is 1. A maximum number of directors is not prescribed by law. Most directors must be local tax residents.
- A secretary must be appointed.
- Opening a bank account in Cyprus is possible in just a few days.
- Financial statements must be submitted in the form of HE 32 once a year to the Register.
Please note: it is necessary to obtain a license in Cyprus, a registration of which takes from 5 working days.
A Charter is an agreement, that governs relations between shareholders, directors and a secretary. A Charter may be amended, that relate to:
- Dividend payments;
- Extraordinary shareholders meetings;
- Voting rights on the Board of directors;
- Rights of shareholders to change directors and secretary;
- The company’s ability to receive loans and give loans to directors.
- A company liquidation voluntarily or by court order.
A MOA is an official document, that displays:
- A company name.
- A company line of business. Any activity, not included in the MOA, is an abuse of authority, therefore, it is invalid/disputed.
- A registered office, that must be physically located in Macau.
- MOA also indicates capital requirements.
- Data of shareholders.
If you want to establish an enterprise in Cyprus, you need to provide our specialists with the following documents:
- A registration certificate;
- Photocopies of shareholders passports;
- MOA and a Charter;
- An approved name in the Register;
- A bank statement.
If the shareholder/director is another company, then documents of such enterprise, its directors/shareholders/secretary are required.
Please note: all documents must be executed in Greek/English, must be certified by a notary.
- A corporate tax is 12,5%, which non-residents pay on income, received in Cyprus, residents from all sources.
- A VAT is 0-19%, (0% is used by exporters, 5% when selling products, medicines, books, 9% is paid by the owners of hotels, restaurants, transport companies);
- An intellectual property income tax is 2%.
- A tax to the Defense Fund is 3-30% (only residents pay).
- A capital gains tax is 20% (it is paid, when selling real estate, shares).
If you decide to set up a company in Cyprus, pay attention to a mandatory annual reports:
- A tax return;
- A financial report in Greek;
- An annual report.
Mandatory requirements for registering Cyprus companies
- any person, regardless of citizenship or place of residence, may be a director/shareholder;
- shareholders can be individuals or legal entities;
- the availability of a local registered office;
- an appointment of a local secretary is mandatory.
- A success of Cyprus in a progressive legislation, a flexible tax system, a developed network of financial services. The Government of Cyprus is committed to providing access to highly developed markets.
- Cyprus is the gateway to investment in the European Union, Eastern Europe, Asia and Africa.
- It is a member of the EU, a European Monetary Union.
- Qualified staff.
- Access to an extensive network of double taxation treaties, that effectively structure tax investments.
- Collective investments can be listed on the Cyprus Stock Exchange and other recognized EU exchanges.
- Extended telecommunications network.
If you are interested in registering a company in Cyprus, you have the opportunity to realize an intention with YB Case team. Our experts will also assist you in opening a corporate account with banks in Cyprus, as well as in obtaining a license in Cyprus. Use any form of feedback.