Company registration in Cyprus
The Republic of Cyprus is a member of the EU. The country is populated by more than 1 million people. Nicosia is the capital and financial center. English is the most common language, although Greek and Turkish are officially recognized.
The main reason why you should buy a company in Cyprus is that the jurisdiction has low tax rates. In addition, there is an opportunity to enter the European market. It is relatively easy to register an offshore company in Cyprus, which attracts many businesspeople.
The advantages of opening a firm
There are many advantages to registering a company in Cyprus. The country has a positive reputation compared to many offshore jurisdictions.
The state has signed double tax avoidance agreements with many countries. Financial reporting can be done with accordancei to international standards. The country has relatively low tax rates and good conditions for opening holdings.
It is relatively easy to register a company, and the fee for keeping a legal entity is small. Opening a company gives access to the European market and VAT numbers. Since that the use of nominal service is allowed, it is possible to carry over losses to new tax periods until they are repaid at the expense of profits.
Forms for registration and requirements to the company
When opening an offshore company, you should keep in mind that only a limited liability company may be established. The company’s activity is regulated by law. There are some requirements for organizations to be established in the country.
At least one director and shareholder are required for a company to operate one person may hold both positions. The director can be a natural or legal person. The company requires the registration of an office within the jurisdiction. A secretary is required - they can only be a natural person.
There are some restrictions on doing business. To provide financial or insurance services, additional permission is required. The name of the company must be unique.
There are different forms of company that can be opened in Cyprus. The most relevant is a limited liability company. The company may be private or public. It is possible to form a partnership.
Terms of incorporation
Most frequently сompanies in the country are allowed to conduct trade abroad, export and import operations. A company may be opened for the purpose of receiving and paying dividends. To choose the type of activity and collect the necessary documents, please contact our specialists at IT-OFFSHORE.
What documents are required for the operation of the company:
- Certificate of incorporation;
- Personnel documents;
- Confirmation of address registration;
- Copies of shareholder documents certified by a notary office;
- The Charter of the company;
- Approved name of the company;
- Bank statement.
Information about the beneficiary and shareholders is public. Data are kept in the Central Bank of the Republic.
Taxes and reporting
The income tax is 12.5%. It is taken from resident organizations for any commercial activity. Non-resident organizations are taxed on income derived from Cyprus.
The tax rate for defense is between 3% and 30%. All companies must pay an annual duty. The fee is 350 euros. If this payment is not made on time, penalties will be charged. A significant delay may result in the liquidation of the company.
The capital increase fee is 20%. The standard VAT rate is 19%, but there are also preferential rates, their amount is 9% or 5%, determined based on the scope of work of the organization.
Companies that are registered in Cyprus must prepare financial statements every year, file a tax return with the relevant authorities and a report with statistical indicators.