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CyprusMain » Jurisdictions » Cyprus
Cyprus is an extraordinary Mediterranean jurisdiction, rich in myths and events. For almost a century, the island was under the rule of the British Crown and only in 1960 received the long-awaited independence. In 2008, Cyprus joined the Eurozone. This is not the main point about Cyprus. Cyprus as an “offshore” attracts entrepreneurs because of providing a favorable tax regime. Moreover, you can become an owner of a local company in one of the centers of the financial world. Whether Cyprus is an offshore zone or not, this question is for some reason often asked by entrepreneurs and is mistakenly associated with the terms "offshore" and “offshore jurisdiction”. But the country is not an "offshore", it is a zone with favorable tax conditions for non-resident firms, which are managed from the territory of other countries. Therefore, in our material, we use the phrases "offshore" in quotation marks, as if showing their figurative meaning in relation to jurisdiction.
ADVANTAGES OF REGISTRATION OF A COMPANY IN CYPRUS:
- is a European jurisdiction with a favorable tax environment for non-residents;
- the island's authorities keep the image of an open state before the FATF and the OECD;
- jurisdiction is used to create trusts and funds;
- an offshore bank account can be opened for companies in Cyprus;
- opening a business in Cyprus as a Cypriot company or firm allows you to obtain tax residency in the country.
The main legislative act that regulates the registration and activities of an "offshore" is Cyprus Companies Law, CAP 113. There are also other regulations governing the opening of certain types of Cypriot organizations:
- branches of foreign organizations - S. 347 Companies Law, CAP 113;
- partnerships - Partnerships and Business Names Law, CAP 116;
- European companies (Societas Europaea or SE) - Council Regulation (EC) No 2157/2001;
- trusts - Cyprus International Trusts Law 1992.
COMPANY REGISTRATION IN CYPRUS
Types of companies
A Limited Liability Company, LTD can be registered on the island. This is the most popular type of business registration in Cyprus, in the name of which there must be a designation indicating limited obligations, i.e. Limited/Ltd. The use of the terms bank, insurance, royal, municipal, global, etc. in the name is not allowed.
REGISTRATION OF A LIMITED LIABILITY COMPANY (LTD):
- Statutory fund - at least 1000 EUR. There are no requirements for payment.
- A shareholder in LTD is at least one natural or legal person, it is allowed to appoint non-residents of the island.
- The director is appointed by a natural or legal person. LTD must have at least one director - a resident of any state.
- If a company plans to receive a certificate of tax residency, the company and its director must be residents of that jurisdiction. The company is considered a resident company if it is managed from the island. The main factor affecting the residency of an organization is the tax residency of directors.
- Only a resident of Cyprus is appointed as the Secretary. It both can be or an individual, or a legal entity.
- Publicly available information - data about the company (name, location, director, shareholder, secretary, statutory fund). Since 2021, the process of launching and filling out the Register of beneficial owners of companies has begun.
- Cyprus ready-made firms submit two reports every year: statistical and financial. Financial statements are submitted independently of the conduct of business and are certified by auditors. Even if the “offshore” company did not conduct any activity, “zero” reporting is submitted.
- The legal address of an open company must be located on the territory of the state.
- A ready-made Cyprus offshore company cannot carry out banking and insurance without a permit (license).
Resident "offshores" of Cyprus pay income tax on all income earned on the island or abroad, and non-resident "offshores" - if the profit is originally obtained in Cyprus or the activity is conducted through a Cypriot representative office.
Income tax is 12,5%. The tax is paid on the net profit and the attitude towards the confirmation of the formation of costs is very loyal.
VAT - 19%.
All companies registered in this jurisdiction must pay an annual state fee – 350 EUR.
DUAL TAXATION TREATIES
The country has signed agreements with many states, including with Ukraine, therefore setting up a company in Cyprus is a cost-effective solution.
Also, a big plus of this jurisdiction is that Cyprus is not included in the "offshore zones" of the Cabinet of Ministers of Ukraine, therefore it is prestigious to open a small business here even in the form of a so-called "offshore" company (LTD). Moreover, there is the possibility of using a nominee service, which allows increasing the level of confidentiality of the beneficial owner of the company.
In case you are planning to buy an offshore company in Cyprus or a ready-made Cyprus company, use the advice of our lawyers on registration issues:
+38 (098) 737-48-88
We will help you open an "offshore" and register a company in Cyprus or, optionally, in other jurisdiction. Registration of an offshore company or enterprise in Cyprus with Campio Group is easy and profitable.