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 One
of our company's specialisation is the incorporation
and administration of International Business Companies.
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A summary of the advantages
of International Business Companies registered
in Cyprus |
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Low tax on the net profit after deducting
all expenses incurred in the course of business
and capital allowances.
Companies who have their Control and Management
outside Cyprus are exempt from Cyprus taxation.
Companies who have their Control and Management
in Cyprus pay tax at 10% on the net profit after
deducting all expenses incurred in the course
of business and capital allowances on fixed assets.
Control and Management generally means where the
majority of the Directors reside and where the
major decisions are made.
Low tax on the salaries of employees.
Salaries from services outside Cyprus for more
than 90 days in a non Cypriot resident employer
or in the permanent establishment of Cypriot resident
employer are not taxed in Cyprus.
Dividend Income
Corporations do not pay tax on dividends received
from other Cypriot tax resident companies.
Dividends received from foreign corporations are
exempt, when the following requirements are met.
The dividend receiving company must own at least
1% of the share capital of the paying company.
The exemption will not be granted if:
a.
Directly or indirectly more than 50% of the activities
of the paying company result in investment income,
and
b.
The paying company is subject to tax at a rate
substantially lower than the Cypriot rate
When dividend income is not exempt, there is a
15% defence tax contribution. Tax credits for
taxes paid abroad are available.
Other significant provisions
Companies part of a group, can consolidate their
results and set off losses of one company against
profits of another company.
Losses can be carried forward indefinitely.
Mergers, acquisitions and spin offs, can be effected
without tax cost.
Expense Deductibility
According to the law all expenses incurred for
the production of the income are deducted before
arriving at the taxable income.
There is a number of restrictions.
VAT
If the company is a holding company without any
other activity, it will not be a taxable person
under the VAT legislation.
However, if the holding company is involved in
other activities as well, such as management services,
then it may be entitled to register and to deduct
VAT that it suffers on expenses incurred in Cyprus.
Work and residence permits can be obtained
for the company's foreign employees.
No exchange control restrictions.
Advantages arising from the double tax treaties
Cyprus has signed with many countries.
Nominee shareholders may be used thus securing
the confidentiality of the real shareholders.
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Use of nominee shareholders and directors |
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In case where the real shareholders and directors
of the company wish to retain their anonymity
nominees may be appointed.
Appropriate documents are given to the beneficiaries
to secure them and enable them to run their business
smoothly.
For the shareholders Trust deeds and blank instruments
of transfer of shares are provided.
For the directors Power of attorney is given.
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Minimum requirements |
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Shareholders (1)
Directors (1)
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What is needed to incorporate a company |
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For the beneficial shareholder:
1. Photocopy of passport
2. Short biography
a. Address
b. Business
c. Qualifications
3. Bank references
Must state how long the bank knows the person.
4. A utility bill showing the address and name.
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Steps for incorporating the company |
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Approval of the name.
Three suggested names must be given. Ready
names are available. |
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After receiving the approval of the name
all documents are submited to the Registrar
of companies for registration.
This will take approximately two weeks. |
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Ready made companies |
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Ready made companies can be provided.
These companies are already registered and what
is merely required is the change of the shareholders
and directors.
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English
Ελληνικά
