A Cyprus company is recognized in law as a legal entity, separate from the persons who form the company and/or the directors and shareholders. Private Limited Companies are considered as one of the most easily managed and cost effective business structures.
- ADVANTAGES
- Low corporation tax at flat rate of (12.5%) on net profit.
- Dividend income is exempt from corporation tax.
- No withholding tax on payments to non-residents (dividends, interest and royalties).
- No capital gains tax on profit from sale of securities.
- Non-resident entities are only taxed on their Cyprus-sourced income.
- Profits from overseas permanent establishments are exempt from corporation tax.
- Restructuring legislation in line with the EU Merger Directive extending to non-EU companies.
- FACTS
- Share Capital: No minimum initial share capital.
- Shareholders: The minimum number of shareholders is (1), and this can either be a physical person or a corporate entity. We can provide nominee shareholders to hold shares as trustees of the client.
- Directors: Minimum of (1) director (Physical/moral). No restriction regarding the nationality. We can provide nominee directors, corporate and physical persons.
- Secretary: Although there is no legal requirement for the nationality of the secretary, we advise that for practical purposes, the secretary is a Cyprus resident. We can provide nominee secretary services.
- Registered office: Office must be in Cyprus where the statutory books and seal of the company are kept at this location. We can provide a registered office service upon request.
- Tax Registration: It is obligatory for all Cyprus companies to be registered with the Tax Authorities upon their incorporation.
- Financial Statements: Audited financial statements have to be submitted to the Cyprus Tax Authorities within 18 months from the incorporation of the Cyprus Company and once every (12) months thereafter.