COMPANY REGISTRATION IN CYPRUS

Completive advantage key points of Cyprus Company

• Net profits of the companies who have their residence in Cyprus, are subject to tax at the rate of 12,5%, which is one of the lowest corporate tax rate within the European Union country-members.
• No withholding tax on dividends, interest and royalties declared by companies to non-resident shareholders.
• Full tax exemption on profits of companies if their management  and control is exercised from outside Cyprus.
• Full tax exemption on profits derived from dividends received from abroad or from profits of permanent establishments in other countries under certain circumstances.
• Tax exemption on gains from the disposal of shares and other securities.
• Unrestricted access to all EU Directives
• 80% exemption on profits from the exploitation or licensing and gains on disposal of Intellectual property
• Full capital gains tax exemption on the transfer or sale of shares in a company, except where the company owns immovable property in Cyprus.
• A wide network of Double Tax Treaties covering more than 55 countries.
• Unilateral relief from tax in Cyprus on amounts of tax paid or withheld abroad.
• No Controlled Foreign Corporation (CFC) rules and  legislation
• No Wealth Tax or Inheritance Tax

Private Limited Cyprus Company

Share Capital

• No minimum or maximum and no minimum paid up
• Can be used at a premium

 Shareholders

• At least one
• Nominee shareholders permitted but nominees must be licensed

Directors

• At least one
• In certain cases director may also act as company secretary
• Can be either a physical or a legal person
• Local not required but strongly recommended

Meetings

• At least one General Meeting of the Shareholders each year, in addition to any other company meetings
• General Meetings of the Shareholders, except for the Annual General Meeting can be held via resolution in writing

Company Secretary

• Any nationality – resident highly recommended
• Can be either a physical or a legal person

Registered Office

• Required to be in Cyprus
• Corporation Tax Rate 12.5%.
• Tax residency Based on the management and control concept;
  Companies tax resident of Cyprus: subject to tax on worldwide income;
  Companies non-tax resident of Cyprus: subject to tax only on income arising in Cyprus.
• Withholding tax on dividends, interest and royalties: None to non-residents of Cyprus (for royalties only for rights used outside Cyprus).
• Tax Rulings: Only on interpretation of Law.
• Double tax relief;
  Double Tax Treaties – over 55.

Cyprus Company Tax Facts

Gains on sale of shares and other securities: Exempt from any tax (except when the shares belong to a non-listed company owning immovable property in Cyprus).

Tax Losses:

• Can be carried forward for five years / Cannot be carried backwards
• Group Relief is available

See also:

• Companies registration in Hong Kong
• Company registration in Singapore