Background & General Outline
The European Union island of Cyprus sits at a strategic point between Europe, North Africa, and the Middle East. Covering 9200 square kilometres, it’s capital is Nicosia but much of the economic activity occurs in Limassol in the south.
Cyprus is a member of the British Commonwealth and the official languages are Greek and Turkish. Most professionals speak fluent English, particularly when it comes to business. The currency is Euro and it is home to around 1.9 million people. Along with Cypriots, there are a large number of Greeks, Turkish, Chinese, and Russian citizens who call the island home.
Economy wise, tourism is a major industry. Millions visit the island each year and luxurious resorts and apartment complexes have sprung up around the country. Other than this, Cyprus is home to a thriving forex and financial services industry. Cryptocurrency and blockchain have grown in recent years, and Cyprus is considered one of the best offshore EU jurisdictions. With a high-income economy and an even higher level of human development, it’s the perfect choice for offshore company incorporation.
Political Structure & Legal System
Cyprus is a presidential republic and both the president and government are elected every five years. It’s a politically and socially stable country that enjoys democratic elections, an independent judiciary, and a complex system of checks and balances designed to protect citizens.
Its legal system is based on English common law, a remnant of a time when it was under British control. It has evolved somewhat since then and is extensively codified and the concept of precedents prevail.
Name Restrictions for Company Formation in Cyprus
When you opt for company formation in Cyprus, you need to take into account certain name restrictions. Like in other jurisdictions, you cannot use a name that is obscene, offensive, or otherwise rude. Likewise, you aren’t allowed to use a name that is the same as or similar to an existing Cyprus company. You’re also prohibited from using a name that suggests the company is carrying out a licensed activity such as insurance, asset management, or banking. If you wish to carry out these activities, you need to apply for the applicable licenses. Your offshore company in Cyprus must also include the word “Limited” or “Ltd”.
Company formation in Cyprus precludes you from carrying out any activities such as banking, insurance, or financial services unless you have the appropriate local permission to do so. An offshore company in Cyprus is also not allowed to trade with companies or individuals within the country. The exception to this is service provision and the receipt of professional services. Activities must be carried out externally and all revenue must be generated from outside of Cyprus.
Taxation in Cyprus
An offshore company in Cyprus has a fixed tax rate of 12.5%, making it one of the most efficient tax rates in the EU. There are no additional withholding taxes, interest, royalties, or other forms of tax payable by offshore companies.
Double Taxation Treaties
Cyprus is currently party to 65 double taxation treaties. These include countries such as the UK, UAE, USA, Greece, Germany, China, and many others. This means that if you decide to go for company formation in Cyprus, you can hope to avoid paying tax twice.
Accounting & Financial Statements
Every offshore company in Cyprus must file accounts records with the tax authorities and Registrar of Companies. The first of these is due no later than 18 months after the date of incorporation. Then, you need to file these accounts on an annual basis. Additionally, auditing is a requirement for all subsequent filings.
Disclosure of Beneficial Owner
Every offshore company in Cyprus must keep detailed and up to date records of the beneficial owners. As Cyprus is an EU Member State, it is required to adhere to the 5th AML Directive that came into force in January 2020.
All beneficial owners are required to be registered and this information must be publicly available on a Central Register. Any individual can access this information at any time without having to give a reason for doing so.
Capitalization Requirements for Company Formation in Cyprus
There are no requirements for a minimum share capital. It is however recommended that you deposit EUR 1000 as an initial capital.
There are exchange control requirements but they don’t apply to an offshore company in Cyprus.
How Much Does Company Formation in Cyprus Cost?
You can get your Offshore Company in Cyprus for as little as €2,800 with our Formation Package. You can also benefit from our special renewal package and additional optional services. To get full price details, related documents and services click on the button below:
Contact Us to Open your Offshore Company in Cyprus
With great fiscal benefits in the EU and a straightforward incorporation process, more and more tech-savvy entrepreneurs are choosing Cyprus for their corporate needs. Register your offshore company in Cyprus, contact us today.
More Locations to Incorporate Your Company
Not sure about Cyprus? No problem! There are several other locations to consider. Select any of the countries below to learn more:
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