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Cyprus Companies

The Republic of Cyprus enjoys the benefit of full European Union membership coupled with a low tax regime providing an alternative to “offshore” incorporation. Cyprus has double taxation treaties with about 40 different countries which is most unusual for a low tax jurisdiction (the lowest corporate tax rate in Europe). In mid 2002, as part of the Income Tax Act, the House of Representatives approved a uniform 10% corporate tax rate to apply to all legal entities registered on the island, thereby eliminating any distinction between onshore and offshore companies (owned by non-resident persons).

Benefits of Cyprus Company Formation

• 10% corporate tax rate for business profits;
• No withholding taxes imposed on dividends, interest, and royalties for non-residents (whether a company or an individual);
• No income or corporation tax on income from dividends;
• Exemption from income or corporation tax of gains made by an individual or company resident of Cyprus from the sale of securities;
• The attractive platform and tax regime that Cyprus provides for a holding company (subject to certain conditions, full exemption from local taxation in respect of dividends received by a holding company from its local and foreign subsidiaries);
• Favorable Double Taxation Treaties (DTT) that Cyprus maintains with about 40 countries;
• Tax advantages available to non-residents including non - E.U. residents;
• Cyprus does not have any rules stating that holding companies cannot perform operating activities;
• Cypriot tax regime permits losses to be carried forward indefinitely;
• Availability of high quality accounting and consulting services;
• The U.K. Company Law heritage/common law tradition;
• The English language being widely known and used in Cyprus.

Formation

The minimum share capital of a Cyprus company is 1,000 Euros. This money does not have to be paid in a bank account of the company. Furthermore in Cyprus, unlike in some other jurisdictions, no share capital amounts are blocked. In fact, our fees for the registration and set-up of the company exceed the share capital amount requirement meaning the share capital has been paid upon formation.

Privacy

The Cyprus companies we create have both nominee shareholders and directors provided at no additional cost safeguarding our clients’ privacy.

Restrictions

Cyprus companies have no restrictions as to how they can be used. However, certain activities such as financial services, banking, insurance, FX trading, etc require special licensing from relevant authorities in Cyprus (and in some cases the M&A of the company will need to include some specific provisions to allow for the specific activities such as insurance operations). Additionally, for certain activities, Cyprus companies, like companies from any other jurisdiction, might need licensing from the authorities of countries were they would like to operate.

Taxes

Corporation tax is imposed on every legal entity which is a tax resident of Cyprus on its worldwide income. A company is considered to be a tax resident of Cyprus if it is managed and controlled in Cyprus.

Non- tax residents of Cyprus are only taxed on their income that is accrued or derived from a business activity which is carried out from a permanent establishment in Cyprus.

Tax rate: 10%

Package Includes

• Certificate of Incorporation in Greek & English;
• Certificate issued by the Registrar of Companies Certifying the Registered Office;
• Certificate issued by the Registrar of Companies Certifying the Directors and the Secretary;
• Certificate Issued by the Registrar of Companies Certifying the Shareholders;
• Certified Translation of the Memorandum and Articles of Association in English;
• Resolution Appointing the First Director(s);
• Power of Attorney;
• Declaration of Trust;
• Share Certificate(s) One Round Rubber Company stamp.
• Full nominee services (Secretary, 1 Director, 1 Shareholder).