Cyprus, Greek Kípros, Turkish Kıbrıs, an island in the eastern Mediterranean Sea renowned since ancient times for its mineral wealth, superb wines and produce, and natural beauty.
Cyprus has one of the lowest corporate tax rates across the European Union (12.5%). Due to its favorable tax regime, Cyprus is the gateway to the European common market chosen by many non-EU companies and a portal for investment from the West into Russia, Middle-east, Asia and South America. It is also a shipping hub, the Cypriot-registered vessel fleet is the fourth largest in the world.
In addition, dividends received by Cyprus companies are exempt from all taxes, with the exception of foreign-source dividends that are deductible for tax purposes for the paying company, being an interesting option for holding companies. Cyprus companies are also commonly used for international trading and for the provision of investment business services.
Private Company limited by share(LTD)
|Governing corporate legislation|
The Cyprus Bar Association is the governing authority and companies are regulated under the Cyprus Companies Law, Cap. 113.
Limited companies may be formed by one shareholder, who can be either natural or legal persons, residents or non-residents, without limitations.
At least one director, who may be a natural person or a legal entity, resident or non-resident. A shareholder may be the company director.
|Information published relating to company officers|
Details of shareholders are publicly accessible.
Directors’ details are available to the public.
The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
|Accounting requirement/ compliance|
Limited companies are required to include financial statements audited or certified by officially authorized auditors or accountants and a declaration on the Income Tax Return. These requirements also apply to companies with no taxable income or dormant companies.
Limited companies are required to submit annually an Annual Return to the Registrar of Companies.
The company must prepare its Annual Return (HE.32) within 14 days after the Annual General Meeting and within a time limit of 28 days from that date must submit it to the Registrar of Companies. In effect, the Annual Return must be completed and filed with the Registrar of Companies within a time limit of 42 days from the Annual General Meeting of the company.
All registered Cyprus companies are obliged to pay an annual charge of €350 in order for the companies to be in good standing order and to remain on the Register of Cyprus companies at the Registrar of Companies.
|Corporate income tax|
A company is tax resident in Cyprus, if it is controlled and managed from Cyprus.
All companies that are tax residents of Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad. A non-Cyprus tax resident company is taxed on income accrued or derived from a business activity that is carried out through a permanent establishment (PE) in Cyprus and on certain other income arising from sources in Cyprus.
Corporate tax standard rate is 12.5%.
|Shared capital/paid up|
Cyprus companies usually have authorized and issued share capital of €1,000. However, there is no minimum paid up share capital requirement. It may be denominated in EUR or any other currency.
|Basis of the Legal System|
Under Common Law.
A secretary is required who must be an individual, resident or non-resident, and will ensure compliance with statutory and regulatory requirements.
Bearer shares are not allowed.
Private limited companies must have a registered physical office address located in Cyprus, where the company must keep all statutory records and other documents which must be available for review.
The company must hold an Annual General Meeting each year. No more than 15 months must lapse between one AGM and the following one. The first AGM may be held within a time limit of 18 months from the incorporation of the company.
|Time to form|
Cyprus has an efficient Registry : 7 days formation time.
Anniversary date of the company / Each Year
Convenient world time zone: GMT+2
Cyprus offers a high level of anonymity and privacy.
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