Interest in the incorporation of international corporations within Cyprus is continuously growing as more businessmen and individuals discover the many advantages they can derive from their use. The combination of Cyprus being a reputable international business center within the European Union, with high-quality support services from professionals, generous tax incentives and extensive networks of favorable Treaties, for the Avoidance of Double Taxation with more than 55 countries, that cover all central and eastern Europe, distinguish Cyprus from the other international business centers.
Our Law Firm provides superior guidance and assistance both to local and international clients on how to successfully complete the registration process of a new Cyprus company as well as on how to form a complex group structure whether or not it includes a Cyprus company.
The tax benefits of a Cyprus company are directly related to the concept of management and control. Therefore, Cyprus companies need to be managed in Cyprus to qualify for tax benefits, which means that the majority of the directors must be Cyprus residents and meetings involving the board of directors have to take place in Cyprus. Therefore, foreign entrepreneurs, who desire to register their company in Cyprus, but do not reside on the island, must appoint Cyprus directors as an alternative option. If that is the case for you, the law offices of AMG Mylonas (are) here to help. In partnership with our fiduciary partners licensed by the Cyprus Bar association, we provide company registration services undertaking all management and administration tasks necessary for the proper operation of a Cyprus Company.
Under the guidance and scrutiny of our Cyprus Law Firm and in connection with the expertise of our associates, accountants, and auditors, we can ensure that the company of each client will comply effectively with all its legal and fiscal obligations.
Cyprus double tax treaties
As of 2017, Cyprus has signed a double tax treaty with all 28 EU member states the majority of which follow the regulations set out by the OECD. That, in combination with the tax advantages available to Cyprus Companies has given them an active role in international business and transactions, mainly related to ex-Soviet countries and Eastern Europe.
The Cyprus tax system has been the spark in the fast-growing Cyprus economy over the last decades. Attractive tax schemes allow foreign corporate clients and investors to achieve tax optimization through legal and controlled means, and thus to carry out their business activities in Cyprus while benefiting from the advantages provided by the Cyprus tax system.
Completive advantage key points of Cyprus Company and Tax Facts
1. Net profits of the companies who have their residence in Cyprus are subject to tax at the rate of 12,5%, which is one of the lowest corporate tax rates within the European Union country-members.
2. Tax residency based on the management and control concept.
3. Companies tax resident of Cyprus: subject to tax on worldwide income
4. Companies non-tax resident of Cyprus: subject to tax only on income arising in Cyprus
5. Full tax exemption on profits of companies if their management and control are exercised from outside Cyprus.
6. No withholding tax on dividends, interest and royalties declared by companies to non-resident shareholders.
7. Full tax exemption on profits derived from dividends received from abroad or from permanent establishments in other countries under certain circumstances.
8. Tax exemption on gains from the disposal of shares and other securities.
9. Unrestricted access to all EU Directives.
10. Gains on sale of shares and other securities: Exempt from any tax (except when the shares belong to a non-listed company owning immovable property in Cyprus)
11. Full capital gains tax exemption on the transfer or sale of shares in a company, except where the company owns immovable property in Cyprus.
12. A wide network of Double Tax Treaties covering more than 55 countries.
13. Unilateral relief from tax in Cyprus on amounts of tax paid or withheld abroad.
14. No Controlled Foreign Corporation (CFC) rules and legislation.
15. No Wealth Tax or Inheritance Tax.
16. Special Tax Schemes:
Private Limited Cyprus Company
No Minimum Share Capital
No minimum or maximum and no minimum paid-up can be used at a premium.
Incorporated with at least one director, shareholder and Secretary.
Nominee shareholders permitted but nominees must be licensed.
Officers and Shareholders can be either a physical or a legal person.
A local director is not required, but it is strongly recommended.
At least one General Meeting of the Shareholders each year, in addition to any other company meetings General Meetings of the Shareholders, except for the Annual General Meeting can be held via resolution in writing.
Registered Office address - Required to be in Cyprus.
Cyprus Company Accounting facts
A Cyprus Company required to prepare its annual returns along with financial statements according to the relevant provisions of the Cyprus Companies Law, Cap. 113 and the International Financial Reporting Standards and file these with the Registrar of Companies. The main characteristics of the accounting regime of Cyprus can be viewed in the below table:
Global Competitiveness Report
Accounting standards: IFRS
Submission of accounts: Required
Consolidation: Yes – exemptions for parent companies of larger groups and small size groups.
Ready-made Shelf Companies
Ready-made registered shelf companies with addresses in multiple tax-friendly jurisdictions to accommodate clients that wish to begin their operations immediately.
Ready-made companies or shelf companies (,) are companies we have already pre-registered, as per the Law of the Republic of Cyprus, and are ready to be acquired and traded instantly.
The purpose of having ready-made shelf companies is to accommodate clients who need to trade immediately without going through a lengthy period *of waiting for their companies to be incorporated. As a result, the option of acquiring ready-made shelf companies will allow our clients to proceed straight off with business transactions and business activities.
Our Cyprus Law Firm provides shelf companies in many beneficial tax jurisdictions, both onshore and offshore.
Dormant Companies with Clean Histories
Our Firm provides dormant companies with clean histories, i.e. (,) companies without any business activities. Officers and shareholders can be changed within the minimum time requirement and without any interruption to the commencement of the business.
For more information please contact us. We would be delighted to meet you and learn more about your activities, the issues you face and your plans for the future.
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