Main advantages of the Cyprus Jurisdiction
- Beneficial tax system
- Corporate Tax rate 12,5% on worldwide income (with effective corporate rate lower for most international transactions though Cyprus)
- No withholding tax on dividends received from foreign entities
- No withholding tax on dividends distributed to non-resident shareholders
- No withholding tax on royalties arising from sources outside Cyprus
- Profits arising from the disposal of securities are tax exempt
- Group relief provisions for resident companies in Cyprus
- Fully compliant with EU and OECD
- Special tax schemes available for Shipping industry, intellectual property, Trusts, Investment Funds, Expats
- Extensive network of Treaties for the avoidance of double taxation
- Member of the European Union
- Privileged geographic location, at the crossroad of three continents
- Reputable jurisdiction and not a tax haven but one of the lowest tax jurisdictions
- Legal and Regulatory Framework
- Common law jurisdiction
- Fully compliant with EU AML Directives, the Financial Action Task Force on Money Laundering (FATF) and OECD
- International business environment for doing business
- Special schemes for obtaining Cyprus citizenship
The formation of a company in Cyprus is governed by the Cyprus Companies Law, Cap 113 of the Republic of Cyprus Laws, as amended until today.
Set up requirements for Private Limited Liability Cyprus Company
Firstly, the registration procedure of a company is the choice of the name of the company followed by an application at the Registrar of Companies for approval of the proposed name.
Memorandum and Articles of Association
Once the name is approved, the Memorandum and Articles of Association of the company are prepared according to the company’s proposed main activity (i.e. development, holding, construction, investment, trading etc) and is then filed with the Registrar of Companies together with the information regarding the first officers i.e. Directors and Secretary and shareholders of the Company.
Share Capital & Shareholders
- Foreign shareholders are accepted;
- No minimum or maximum paid up but each subscriber to the memorandum must subscribe for at least one share;
- Shares at premium, are available;
- Minimum of one shareholder;
- Nominee shareholder permitted but nominees must be licensed (as Highworth Cyprus)
- Minimum of one Director should be appointed;
- Director may act as a Secretary;
- Directors can be a legal entity or a physical person;
- Cypriot directors should be appointed, for tax, management and control as well as substance purposes.
- No limitation to the nationality of the Secretary but a Cyprus resident is highly recommended for tax, control and substance purposes;
- Secretary can be a legal entity or a physical persons
- Cyprus registered office is a requirement.
- At least one General Meeting of the Shareholders each year, in addition to any other company meetings;
- General Meeting of the Shareholders, except for the Annual General Meeting can be held via resolution in writing;
- Annual General Meeting of the directors should take place in Cyprus;
- Decision-making of the company is held and practiced in Cyprus (via nominee directors, if necessary).
The concept of ‘nominee’ Directors, shareholders or any other position of company officials required
Cyprus is one of the many international jurisdictions which recognizes and practices the concept of ‘nominees’. The role of a nominee is offered by professionals (licenced or exempted) and signifies an individual or a company who/which is given a role in a company, in place of another person, acting on their behalf without the need to disclose the person they represent. This relationship is based on professional trust without concerns and requires a trustful coordination of actions with experienced professionals in order to conduct business matters in line with the laws of the country the company is a resident in.
- Enhanced Substance
It is always for the benefit of international clients to enhance their substance in Cyprus through the renting of offices, hiring of employees in Cyprus, establishing themselves in their relevant sector in Cyprus.
How we may assist:
- Incorporation of companies
- Mergers/ Redomiciliations
- International structuring/ restructuring
- Nominee solutions and services
- Corporate/administration services and solutions
- Tax/VAT/VIES registrations and submissions
- Work permits/temporary residence permits for third country nationals employed in Cyprus
- Assistance in establishment of fully functional offices in Cyprus