Cyprus flag

CYPRUS


The Republic of Cyprus is a small Mediterranean country. It is known for its developed tourism sector and loyal foreign investment policy, which allows us to rate the country as a tax haven. Offshore Cyprus has a favorable tax environment and stable legislation. However, the Republic does not have the disadvantages typical of tax havens. The legal norms for the creation and operation of the companies are fully in line with the European ones, and reputational risks are excluded due to the inclusion in the list of permitted ones of the OECD. Registering a company in Nicosia or any other city in Cyprus is also beneficial due to access to the EU market, which promotes international trade.


Advantages of registering a company in Cyprus

  • Well developed infrastructure;
  • Lack of restrictions on the choice of field of activity of foreign companies;
  • Ability to create a company in Cyprus with one founder;
  • Freedom of currency operations and capital repatriation;
  • Availability of double taxation agreements with more than 60 countries;
  • Ability to obtain a long-term visa for two years and apply for citizenship in the future.


    • Basic forms of legal presence and doing business in Cyprus

  • Private Limited Liability Company (LLC);
  • Public Limited Company (PLC);
  • European Company (Societas Europaea);
  • Partnership;
  • Partnership;
  • Partner.


    • The most popular business structure used in Cyprus is the Limited Liability Company (LLC). Such organizations can have up to 50 members of any nationality and residence. The registration of companies in Cyprus under the LLC legal form requires a legal address in the country, a secretary and at least one director who can be both a secretary and a shareholder. In addition, the law restricts the right not to transfer LLC shares to third parties. This allows you to benefit from favorable taxation in the country and receive tax relief for the tax paid abroad.


    Registration procedure in Cyprus


  • Choose a name and get approval for its use from the Registrar;
  • Registration of the company in Cyprus in the State Register of Companies and obtaining a certificate;
  • Submit the new company details to the tax authorities and get a TIN;
  • Opening a bank account;
  • You register with the Cyprus Social Security Office;
  • Obtaining business licenses and permits (if required);


    • Cyprus legislation and regulatory environment


    The legal system of Cyprus is based on the principles of English common law. After the country's accession to the European Union, the legislation was adapted to European norms. The Companies Law outlines the basic requirements for company registration in Cyprus, governance and corporate reporting.


    The Industrial Property Office regulates intellectual property. It is responsible for maintaining the registers and makes administrative decisions leading to the registration of intellectual property rights. The Office, the District Courts and the Supreme Court decide disputes at first instance.


    Regulated business activities in Cyprus include auditing, law practice, gambling, finance and investment business. Therefore, you must obtain the appropriate permissions to participate in these companies.


    Once a company is incorporated in Cyprus, its founders must hold an annual general meeting and file financial statements.


    Tax system of Cyprus


    Cyprus is an offshore zone that does not exempt entrepreneurs from paying taxes, but provides a comprehensive list of preferences. The level of taxation here is one of the lowest in the EU countries. Central tax rates:

  • Corporate tax - 12.5%;
  • Tax on capital gains - 20%;
  • VAT - 5% to 19% (0% on export transactions and financial services);
  • VAT - 35%.


    • Dividends or interest paid to a foreign person are not subject to withholding tax in Cyprus. However, residents must also make a special contribution to the defense of the republic (SDC) of 3% or 17% (for dividends received from foreign companies). SDC is only levied on non-taxable income through dividends, 'passive' interest and rental income.


    Cyprus legislation applies the management and control criterion to determine tax residency. An organization will be considered a tax resident if the company's business decisions are made within the state and the majority of the board of directors are residents. A Cyprus company is taxed on its worldwide income.


    Opening a company in Cyprus also allows you to take advantage of tax relief (NID). Its value can be up to 80% of the taxable income from raising capital.


    CREATE A COMPANY


  • Check and reserve a company name
  • Registration of a company in the form of an OOD, including state fees
  • Legal address for 1 year
  • Nominal service for 1 year
  • Register of Directors and Secretaries
  • Local secretarial services for one (1) year
  • Set of statutory documents of the company in electronic form
  • Contribution to the authorized capital of the company
  • VAT registration
  • Obtaining a Foreign Investment Permit
  • Opening an account in: Bank of Cyprus, Hellenic Bank
  • Support for obtaining a residence permit
  • Free consultation
  • Help with online trading and opening an account at viva.com for online trading
  • Accounting services - 12 months
  • Annual renewal (payable from the second year)

    • *Within 30 days


    IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company. Please, if you are interested, make an inquiry to us.


    What is the procedure!

    1. You submit a request for company registration using the request form.

    2. We check if the registration company name is free and eligible for registration.

    3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.

    4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.

    5. You receive all necessary company documents for verification.

    6. You receive details of your newly opened bank account.

    7. In the specified period (for Cyprus it is 30 days), you receive all the services included in the package.

    8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.


    All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!