Cyprus

Cyprus - Offshore Company - Overview

The Republic of Cyprus enjoys a strategically beneficial location at the intersection of the traditional shipping routes between Europe and the continents of Asia and Africa. It's a hub of the busy trade routes linking Western Europe with Middle East and North Africa. While Greek and Turkish are the two official languages, English is wide spread, especially in the business community.


The offshore regime in Cyprus for offshore companies has changed as part of the island's accession to EU, and as result of agreements with OECD. It also enjoys a wide network of Double Tax Treaties, becoming a dominant player for tax planning structures. Furthermore, Cyprus is renowned for its efficient, stable, and reliable banking system and effective professional sector, both audit and legal. Its entire constitutional and legal framework has enabled Cyprus jurisdiction to become an important offshore financial center.


Restrictions concerning maximum allowable percentage participation, as well as minimum monetary level of foreign investment in any company / legal entity in Cyprus, were lifted from January 2000 for EU Citizens, and from 1 October 2004 for non-EU Citizens.
Now, Cyprus' Investment Policy allows 100% foreign participation in Cyprus Entities in almost all sectors of the economy not only for EU Citizens, but also for investors from third countries.


There is a 10% corporate tax rate approved for Cyprus companies which it apply for both onshore and offshore companies, plus 2% levy on wage bills. Therefore the corporate tax of a Cyprus company is one of the lowest rates in the EU.


The most important benefits that Cyprus offshore company offers are: free movements of profits derived from operation on non-resident investments; no withholding tax is payable on dividends, interest and royalty payments for your offshore company; full capital gains tax exemption is given on capital gains; salaries of foreign employees of offshore companies employed outside Cyprus are completely tax exempt; Cyprus is a major offshore business center with thousands of offshore companies, firms incorporated annually; dividends to shareholders are tax free; double tax treaties have been concluded between Cyprus and 38 countries; offshore companies situated in Cyprus may purchase various items for their own needs duty free.

Cyprus

General Information

Type of entity

Private IBC

Type of law

Common

Shelf company availability

Yes

Company Registration Timescale

5 days

Corporate Taxation

10%

Double taxation treaty access

Yes

Share Capital or Equivalent Requirements

Standard currency

Euro

Permitted currencies

Any

Minimum paid up

1,000 Euro

Usual authorized

5,000 Euro

Directors

Minimum number

One

Local required

No, but advisable for purposes of tax residency

Publicly accessible records

Yes

Location of meetings

Anywhere, but Cyprus advisable for tax residency purposes

Shareholders

Minimum number

One

Publicly accessible records

Yes

Location of meetings

Anywhere

Company Secretary

Required

Yes

Local or qualified

No, but Cyprus advisable for residency and compliance

Accounts

Requirement to prepare

Yes

Audit requirements

Yes

Requirement to file accounts

Yes

Publicly accessible accounts

No

Recurring Government Costs

Minimum Annual Tax/License Fee

Not applicable

Other

Requirement to file annual return

Yes

Change in domicile permitted

No

Cyprus Incorporation Costs

Company registration

1,500 Euro

Registered Office

500 Euro

Bank Account

390 Euro

Accounting

1,500 Euro

VAT & VIES returns

1,000 Euro

Annual Audit

Depends on complexity and volume of work

Optional/Additional costs

Local Nominees Services

1,000 Euro

*Seychelles Nominee Services

1,200 Euro

VAT Number

500 Euro

Company Seal

50 Euro

Certificate of Good Standing

200 Euro

Power of Attorney

150 Euro

Apostil/document

200 Euro

Courier Delivery

80 Euro

*optional