Incorporation in Cyprus
Cyprus
Cyprus companies can be used for the invoicing / re-invoicing of goods and services (as well as for the receipt of trading commissions) from any country to any destination and for transit trade activities in combination with the operation of bonded warehouses, bonded factories and the free trade zones.
Cyprus Companies may provide services such as sales promotion, accounting function, provision of labour – executive staff, consulting, market research, commission agency, intermediation, client introduction and many others. They may employ expatriate staff, who benefit from double tax treaty provisions, by paying tax and social insurance in Cyprus at low rates, thus avoiding the high tax rates in their home country.
Popular applications
- Trading company in agency structure. Ready-made companies available.
- Holding company
Corporate requirements
No minimum share capital requirement. It is customary to have € 1,000 issued share capital. A minimum of one shareholder is required. Foreign corporate or individual shareholder is permitted. A minimum of one director and one secretary is required. Director’s information available on public record.
Annual audited financial statements and annual return must be submitted to the Registrar of Companies in both English and Greek.
Although shareholder information is part of the public record, beneficial ownership information is not disclosed to any regulatory authority.
All Cyprus companies are required to pay an annual fixed duty of €350 to the Registrar of Companies starting from year of incorporation and each following year by June 30th.
Bank account introduction
Remote Bank account introduction is offered at Cyprus bank Piraeus Bank, Hellenic bank or non-Cyprus banks (ask for detailed proposal).
Timescales
We maintain shelf companies and pre-approved Cyprus company names. If you purchase a shelf company with existing nominee director / shareholder, time frame is 3 – 5 working days. With a shelf company, the time-frame to register changes in director / shareholder + apostilled documents is approximately 2-4 weeks. Time frame to register a company already with a pre-approved company name: 9 – 12 working days.
If a company is incorporated with a name that requires prior approval from the Company Registrar, the incorporation process will take approximately 4 – 6 weeks. It takes 5-10 business days to obtain VAT number.
Accounting requirements
- VAT declarations are usually filed quarterly.
- VIES reports are submitted monthly.
- VAT Office of Cyprus needs to see evidence that the company has actually commenced some kind of activity. Client need to provide, for example, a purchase invoices or pro-formas for goods / services and/or agreements with EU clients or suppliers .
- Audited Financial Reports must be submitted for all Cyprus companies by December 31st.
How do I proceed?
In order to commence incorporation and account introduction, we will require the following:
- Confidus Company Form including description of company work & information on beneficial owner.
- CV & reference letter of Beneficial Owner and Attorneys in Power.
- Certified passport copy + utility bill not older than three months of Beneficial Owner and Attorneys in Power.
- 100% of the company formation cost.
Taxation
A company may be established for international trading purposes and pay the lowest taxation in Europe (12,5%) on their net profits. In addition, there are no withholding taxes on payment of dividends to non-resident shareholders. A Cyprus company is easily used as Intermediary company in agency structure as there are no restrictions on payments to offshore entities. Nevertheless, arm-length principals and sufficient substance is recommended for both Cyprus Ltd. and offshore principal.
POPULAR PACKAGE
- Shelf company with Apostilled document set incl. General Power of Attorney for 1 year; Nominee Shareholder/Director/Secretary service for 1 year, Registered address and registered agent for 1year
- Bank account introduction at Cyprus bank
- VAT registration
- Annual Cyprus Levy – payable for year of incorporation
Holding structure
Provided that minimum requirements are satisfied, a company can be established with 0% tax rate on dividends received by overseas subsidiaries.
Cyprus Holding structures are often chosen for:
- Accumulation of capital and shareholder value
- Reinvestment of capital into new projects
- Distribution of profits to shareholders
- Consolidation of various business segments
- Receiving dividends from operating companies
- Asset protection
Dividend income
Dividend income is exempt of tax, if both of the following criteria are met:
- The company paying dividend engages directly or indirectly 50% in activities leading to investment income.
- The foreign tax burden on the income of the dividend paying company is not lower than 5%.
Capital gains
There is no tax on capital gains.
Dividend payments
There is no outbound withholding tax on profit distributions to foreign shareholders.
POPULAR PACKAGE
- Shelf company with Apostilled document set incl. General Power of Attorney for 1 year; Nominee Shareholder/Director/Secretary service for 1 year, Registered address and registered agent for 1year
- Bank account introduction at Cyprus bank
- Annual Cyprus Levy – payable for year of incorporation
- Annual fees:
- Annual renewal of nominee services, registered address and registered agent incl. Apostilled General Power of Attorney
- Annual Cyprus Levy – payable by June 30th
- Accounting, Financial Audited statement
ADDITIONAL SERVICE PACKAGE
- VAT registration
- Bank account introduction at Cyprus bank (remote service)
- Annual Cyprus Levy – payable for year of incorporation
- Company name approval by Company Registrar
- Nominee Director signature. Minimum fee per document.
- Apostille on document.
- Company House Certificate (Certificate of Good Standing, Certificate of Directors & Secretary, Certificate of Address, Certificate of Shareholders)
- Tax Residence Certificate with Apostille
- Agreement preparation
- Company re-structure/amendments (changes of director, company name, etc.)
- Liquidation/Dissolution starting
ACCOUNTING SERVICE PACKAGE
Financial Audited Statement on:
- Dormant company
- Low activity (up to 10 invoices / 3 contracts per year)
- High activity (up to 100 invoices / 10 contracts per year)
VAT & VIES reports:
- From 0 to 20 transactions per quarter
- From 21 to 50 transactions per quarter
- From 51 to 100 transactions per quarter