If you want to form a company in Cyprus, this jurisdiction has emerged as a popular place for people seeking to incorporate. Many business owners prefer Cyprus company registration because of its history as a former British Colony, meaning much of the population speaks English. So, it is relatively easy to conduct business here as well as incorporate within the jurisdiction.
Furthermore, the legal structure in Cyprus was based on its previous association with Britain. So its legal structure was formed on the familiar English Common Law. This familiar legal basis in addition to Cyprus’s improving economy has paved the way for many financial benefits for international business people choosing to incorporate here.
How much does it cost to register a company in Cyprus? Well, Cyprus company formation fees are quite reasonable. As government filing fees vary over time and we establish companies in so many jurisdictions, it is difficult to post fees that do not need to be regularly updated. So, there is a number or form on this page for inquiries for the latest costs.
Cyprus also earned a high standing as one of the best regions in which to incorporate for tax planning purposes. Many limited company owners report that Cyprus’s jurisdictional incorporation standards provide ideal protection for businesses. The past ten years has seen Cyprus as an increasingly favorable place to take advantage of international tax benefits.
Since the political and legal system in Cyprus is stable. Plus its location provides easy access routes for both travel and trade access to places like Asia, Europe, and the Middle East. Cyprus has been deemed by many business owners choosing to conduct business internationally as an excellent jurisdiction for incorporation.
Cyprus provides a great deal of stability because of its membership in the EU. As such, this region has solidified its reputation as an excellent and reliable business jurisdiction, offering some of the lowest taxes in Europe, and as a place to both incorporate and conduct international business.
Benefits of Incorporating in Cyprus
Cyprus offers so many benefits to corporations, including tax benefits, financial opportunity, and a well-connected economy, that its incorporation status has grown exponentially over the past decade. Each year, the number of business owners deciding to incorporate in the country substantially increases as the tax and business opportunities provided to entrepreneurs incorporating in the jurisdiction have attracted many new business owners.
Further legitimacy for those wishing to start a company in Cyprus occurred in 2004 when Cyprus entered into the European Union. This union not only boosts Cyprus as a stable region for incorporation but also solidified its listing in the Organization for Economic Cooperation and Development (OECD), White List.
Further benefits of incorporating in Cyprus include the following:
- Cyprus has a favorable Corporate Tax Rate, which is one of the lowest found anywhere in the European Union at 12.5%.
- Any business person wishing to incorporate in Cyprus will find that the incorporation process is both efficient and easy. To incorporate, the company only needs to list one director and one shareholder.
- The shareholders and directors can be individuals.
- The individuals or entities who own and direct the company can be foreign and reside anywhere in the world.
- Before a company incorporates, the proposed name needs to be approved by the government agency that registers companies. As long as a unique name is chosen for incorporation, the process of approving the name should be completed quickly.
- Documents can be filed in English.
- Cyprus is well known for being a jurisdiction with favorable tax benefits for holding companies.
- There are no controlled foreign company (CFC) regulations in Cyprus, allowing for greater freedom for those forming and operating such companies.
- Cyprus is a popular place for security traders to maintain offices for several reasons. Some of the biggest of which are as follows: First, in Cyprus, corporations do not need to worry about taxation on dividends. Second, there is no tax on Capital Gain Tax (CGT) on sales of securities.
- Cyprus also has deeply entrenched written tax agreements with a variety of countries. In Cyprus, over forty double tax treaties (DTT) are in place with other countries.
- It is relatively easy to open a bank account in Cyprus after forming a company. Opening a bank account can be done through an eligible introducer (such as this company) provided that the documentation is notarized and the necessary paperwork and identification documents are included by the directors and shareholders.
- This jurisdiction works with International Financial Reporting Standards (IFRS).
Keep in mind that the tax and other benefits mentioned above relate to Cyprus. You will need to be sure comply with the tax and other laws of the country in which you reside and/or hold citizenship.
Incorporating in Cyprus
There are a few required steps a company or limited company must complete to register in Cyprus. These include:
- Checking to ensure the company or limited company’s name is unique and obtaining approval for that name through the Registrar of Companies. This step can be done through your agent (such as this one).
- Next, your agent needs to prepare the company’s memorandum and articles of association. To ensure that this step is done both legally and correctly, the business should seek out a specialist who also drafts the prepared documents. Currently, there is no standard in Cyprus for either one of these documents, so your agent will complete this step.
- Once these documents are completed, they need to be turned into the companies section of the department of the government that receives, registers and files the documents. The necessary documentation is prepared by the agent and are submitted by a specialist, like an agent (such as this one) so it can be registered in the Republic of Cyprus. These forms include:
–Declaration form signed by the registered specialist.
–A document stating the address of the registered office.
–Information disclosing the directors and secretary, including those directors that are acting to manage the public company.
–Memorandum and Articles of Association, approved by a registered specialist
–A cover level that covers the Legal Entities Registration
- Once these documents are submitted and registered, and all fees are paid, the company receives the final certificate of incorporation. The corporation can then receive other necessary legal copies and certificates upon request.
- After the company receives its certificate of incorporation, it then needs to register at the Tax Department for Tax and VAT services so that the corporation has a Tax Identification Number. This step can be completed by your agent.
With so many benefits being offered to business owners deciding to incorporate a company in Cyprus, one can see why Cyprus recently emerged as a popular jurisdiction of choice. From the legitimacy offered by the region because of its ties to the EU, to its low taxes and open financial opportunities for corporations and finances, Cyprus will more than likely continue to attract investors seeking to incorporate in an opportunistic offshore jurisdiction.