Cyprus is not a zero-tax jurisdiction, but rather a low tax jurisdiction. This beautiful island located in the Mediterranean Ocean offers an extensive double tax treaty network that makes it ideal when it comes to tax planning and additionally is a member of the EU and thus it will not be frowned upon.
Among the particular features of the Cyprus Company we find:
- The powers and objects of a Cyprus company are contained within the Memorandum of Association and have to be specific. The languages of legislation and corporate documentation are English and Greek;
- The company must maintain a registered office address within Cyprus;
- The company must also appoint a company secretary who, for practical reasons, is advisable to be resident in Cyprus;
- The Company cannot engage in banking, insurance or the provision of financial services to the public unless special permission is granted;
- The Company cannot trade with resident individuals or companies located in Cyprus other than to the maintenance of premises or banking and professional services.
- Company names are subject to the following requirements: names may be expressed in any language that uses the Latin or Greek alphabet if the Registrar receives a Greek or English translation and the name is not deemed undesirable; Any name that is identical or similar to an existing company name is not acceptable; Any name that implies illegal activity or implies royal or government patronage is not permitted. The following words or their derivatives are restricted: Asset Management, Asset Manager, Assurance, Bank, Banking, Broker, Brokerage, Capital, Credit, Currency, Custodian, Custody, Dealer, Dealing, Deposit, Derivative, Exchange, Fiduciary, Finance, Financial, Fund, Future, Insurance, Lending, Loan, Lender, Option, Pension, Portfolio, Reserves, Savings, Security, Stock, Trust or Trustees. The following names or their derivatives and foreign language equivalents require consent or a license: Bank, Trust, Building Society, Insurance, Assurance, Reinsurance. The suffix Limited or Ltd. denoting limited liability must be included.
- The minimum number of directors is one. The directors may be natural persons or corporate bodies. To obtain relief under the taxation treaties signed by Cyprus, the Company needs to be Cyprus resident, and must have a majority of its directors based in Cyprus;
- The minimum number of shareholders is one;
- The details of directors and shareholders appear on the public files but anonymity can be retained by the use of third party directors and nominee shareholders. Bank references for the beneficial owners must be submitted to the Central Bank of Cyprus. However, this information is protected by secrecy laws;
- The share capital must be expressed in Cyprus pounds. The minimum authorized share capital of a Cyprus offshore company is CYP 1,000;
- For companies wishing to establish a physical presence in Cyprus, the minimum is CYP 10,000;
- The following classes of shares are permitted in Cyprus: registered shares, shares with par value, preference shares, redeemable shares, and shares with no voting rights. It should be emphasized that bearer shares are not permitted;
- Taxation rules imply that under special provisions in the Cyprus Income Tax Laws, the net chargeable profits of Cyprus Offshore Companies are taxed at a rate of 10%;
- One of the great benefits of Cyprus Companies is that Cyprus has signed a large number of double-tax treaties which provide for reduced or zero withholding taxes on dividends, interest or royalties paid to a Cyprus Company. There are treaties with Austria, Belgium, Bulgaria, Canada, China, the Czech Republic & Slovakia, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Kuwait, Malta, Mauritius, Norway, Poland, Romania, Russia (including all the CIS countries except for Kazakhstan), Singapore, South Africa, Sweden, Syria, Thailand, UK, USA, and the former Yugoslavia. Double taxation treaties with Kazakhstan and Finland are currently being negotiated;
- License fees are not applicable in Cyprus;
- An annual return giving details of all those who have held shares throughout the year and the current directors must be filed and submitted to the Cyprus Taxation Authority and the Central Bank of Cyprus. Besides, every Cyprus Company must prepare audited accounts and submit these to the Central Bank and the income tax office.
The current international view of Cyprus by International Organizations.
|International Organization||White List||Grey List||Black List|
Company registration US$900.00
- Authorized share capital up to EUR5000, translation to English, a full set of company documents, rubber stamp, and seal.
- Registered address and Agent.
- Share certificate(s).
- Resolution naming the director and issuing the shares of the company
- Annual license fee
- Registered address and Agent.
- Verification the company complies with local legislation.
Apostille by document
|Notarization of documents (per doc)||US$100.00|
|General power (if CLD provides the director)||US$250.00|
|Nominee director (annual)||US$500.00|
|Nominee shareholder (annual)||US$500.00|
|Certificate of incumbency||US$300.00|
|Certificate of Good Standing||US$300.00|
|Certifications issued by the registry||US$200.00|
|Change to another registered agent||US$400.00|
|Resolutions after incorporation||US$175.00|
* Nominee directors and nominee shareholders are provided by our Panama office. Should you require nominees to be provided in Cyprus please inform us accordingly.