Company Registration in Cyprus
Republic of Cyprus in 2021 is considered to be one of the best jurisdictions worldwide for company formation services, due to the beneficial tax regime and highly advanced banking and digital service sector.
As Cyprus is member state of the European Union (EU), it enables businesses to highly benefit from the common EU market, and simultaneously, to receive a highly benefical tax regime.
Cyprus company formation is a perfect solution for both EU nationals, and nationals from countries outside the EU, as Cyprus tax regime and financial infrastructure is beneficial.
Why register company in Cyprus?
Market access in Cyprus
Cyprus is one of the European Union's fastest developing countries in economy and with rapidly growing GDP. From 2008 Cyprus is a member of Eurozone, which means that your company established in Cyprus gets a full access to EU market and more than 40 countries under European Trade Agreements.
High quality of living and geographical location makes Cyprus a popular destination for establishment of Shipping companies. Shipping companies in Cyprus get Competitive Tonnage Tax, rather than tax on their actual profit and an approved EU open registry, which provides stable fiscal environment for Cyprus Shipping industry.
Currently more than 3000 globally recognized finance, accounting, law and shipping companies are registered and pursuing business in Cyprus.
Tax regime in Cyprus
One of the most important factors for your business is tax, this is why you should choose a country with a friendly tax regime. With one of the lowest possible rates of corporate tax in EU - Cyprus may be the perfect place to register company.
Corporate tax in Cyprus is 12.5% on net profits, dividends are taxed with 0% for non-residents.
Cyprus has one of the lowest VAT rates in EU only 19%.
Cyprus has Double Tax Treaties with more than 60 countries, which would ensure that you are not double-taxed on your income from Cyprus.
Additional benefits of tax regime in Cyprus:
- Dividend income exemption based on relaxed conditions.
- Capital gains tax exemption.
- No withholding tax on outgoing dividend, interest or royalty payments.
- Tax exemption for gains from trading in securities.
- Invest in equity of Cypriot company and get notional interest deduction.
- Foreign Exchange gains and losses are tax neutral.
- Especially attractive personal tax regime for international professionals and non-domiciled individuals.
- Tailor-made provisions for investment funds.
- Tax deductions if you invest in startup.
Low cost of doing business in Cyprus
With high standard of life Cyprus provides low labour cost for highly skilled professionals compared to other EU countries. Relatively low office rent and accommodation prices make Cyprus a perfect place for living and business.
No minimum investment required to start your business, register company in Cyprus now.
Privacy in Cyprus
Even though Cyprus has a transparent tax regime, there is a non-disclosure legislation in place providing a great degree of privacy for your business operations that in other EU countries.
Process of company registration in Cyprus (2021)
Name of the company
Firstly, decide on the name of your company to understand whether the same name will be approved by Registrar of Companies.
Decide on company type
Company types in Cyprus are the same as everywhere, most popular and recommended choice of legal entity for foreigner by EU LAW FIRM lawyers is Limited Liability Company (LLC) and holding company fully compliant with EU regulatory framework.
The legal entities in Cyprus are:
- Private and public company
- General and limited Partnership
- European Company
- A branch of an overseas company having the same name as the parent company
You are not required to have a local Cypriot partner and you can establish your company without any minumum capital requirement. Minimum share capital of Cyprus company is 1,000 EUR, which you do not have to deposit immediately to company's bank account.
Share capital
As mentioned, there is no minimum required share capital for private companies in Cyprus, however shares can be either in EUR or any other currency of your choice.
Shareholders and other entities
Under the law of company formation, you must have at least one registered shareholder.
Company registered in Cyprus shall have one company secretary.
There must be at least one director, with any nationality.
Registered office in Cyprus
To register company in Cyprus you shall have registered office which is included in our Cyprus company registration service.
How long does it take to register company in Cyprus?
Registration of Cyprus company takes 2-3 business days.
What are the required documents to register a company in Cyprus?
With our lawyers you will need only the minimum documents when registering a company in Cyprus.
You only will need:
- Bank reference letter;
- Proof of identity (ID card or passport verified by Law firm of Notary). For other possibilities of identification contact us;
- Other documents will be prepared by us.
Baraccuda Maritime & Shipping Legal Services also offers accounting services in Cyprus. Including VAT registration in Cyprus, payroll in Cyprus, fiscal representation in Cyprus and all other related tax services.
To find out additional information about Cyprus company formation, please do not hesitate to contact our company lawyers in Cyprus via email info@baraccuda.eu or phone (also available Whatsapp, Telegram and Viber) +357 99781850
