The nuances of business in Cyprus
Many businesspeople are seeking to start a business in Cyprus. This is due to the fact that there are opportunities to enter the international market, and the country has a reliable legal system. Taxation is quite low; there are privileges for some categories of business. To clarify the nuances of company registration, please contact our specialists at IT-OFFSHORE.
Nuances of company registration
Company registration in Cyprus in 2020 is possible in the form of a public company, private company, partnership, holding, representative office, trust or branch. These legal forms differ in their structure. The required form is selected based on the specifics of the business.
When choosing one, it is important to consider the status of an offshore - it may be resident or non-resident. In the first case, the director should be a citizen of the country or a resident. To open a non-resident offshore the director may be a foreigner.
At least one director and a shareholder are required to conduct work; both an individual and a legal entity may become directors. It is necessary to have an office in the country and a secretary. The company will need a unique name. Notarization is required when translating documents into the official language of the country.
The country's government supports both local businesses and foreign enterprises. There are many tax privileges; the rate of corporate tariff is 12,5%. Capital growth tax can be from 0 to 20%. The VAT rate may be 0%, 5.8% or 19%. It is calculated taking into account the specifics of the goods produced.
According to the current laws of the European Union, beneficial owners must pass the identification procedure. In addition, there is a need to submit data about the company's customers. The objects of entrepreneurial activity have to pass the registration procedure. It is necessary to periodically submit financial reports, audit. It is necessary to hold a meeting every year, to pay fees and duties.
The pros and cons of opening a company
Starting a business in Cyprus is beneficial, as there are favorable tax conditions. In addition, there are other advantages to business development.
- Benefits for payment of various fees;
- Opportunity to do business in the EU;
- Jurisdiction is considered respectable;
- The country is on the OECD white list;
- No taxation on dividends.
There are a number of disadvantages to doing business in Cyprus. These include finding data on founders and residents in the public domain. In addition, control and management of companies must come from the country of registration. This means that the company must have a bank account in Cyprus, the document flow must be from Cyprus. Tax returns and reports must be filed.