We have strong experience and cover all of your company’s potential legal requirements: the registration and administration of an international business company or a local company, nominee services, corporate management and reorganization, mergers and acquisitions.
Cyprus is one of the easiest places in Europe to set up a business, you do not have to be physically present in Cyprus during the registration procedure of your company. Also it is lawful for the absolute owner of the company to use nominee services if it is not easy for him to administer the company from abroad or if he prefers to maintain anonymity with regard to his ownership of a company.
The simplicity of the procedure of company registration and administration and the existence of many treaties signed between Cyprus and other countries combined with the low tax paid by Cyprus-based companies offer the possibilities for international tax planning.
- The International Business Company is considered as non-resident for exchange control purposes and it can operate freely foreign currency bank accounts with any bank in Cyprus or abroad. There are no restrictions or interventions by the Central Bank of Cyprus and local banks allow their overseas clients, in this case the International Business Company, to conclude transactions.
- The net profits of the company are liable to income tax at the rate of 10%.
- The beneficial owners of International Business Companies are not liable to additional tax on dividends or profits over and above the amount paid or payable by the respective company.
- No capital gains tax is payable on the sale or transfer of shares in an International Business Company. No estate duty is payable on the inheritance of shares in an international business company in the case of the death of a shareholder. No capital gains tax is paid by the transfer of immovable property owned abroad (outside Cyprus).
- International Business Companies do not pay stamp duty on documents which relate to transactions connected with their normal overseas activities.
- An International Business Company does not pay on its net profits any kind of special contributions or defense contribution.
- Interest and royalties paid by the Cyprus International Business Company to non residents are not subject to withholding tax if the use of such rights is outside Cyprus.
- There is no obligation of the international business company to register for V.A.T. which presently is at the rate of 15% in all sales of goods and services effected by those registered.
Procedure of Registering a Company
- Approval of the name of the company (4-7 business days).
- Application to the Central Bank for Exchange Control approval.
- Preparation and printing of the Memorandum and Articles of Association of the company in both Greek and English. These documents contain information about the company’s activities, the names of the shareholders, the authorised share capital and the number of issued and paid-up shares that each shareholder holds.
Directors of the Company
The minimum number of directors is one and can be of any nationality. Our firm is appointed as nominee directors in order to execute the board meetings and resolutions in Cyprus. In this way management and control is made in Cyprus for tax purposes.
Shareholders of the Company
The minimum number of shareholders is one. Our firm can provide nominee shareholders services upon request.
The existence of the company secretary is required by the Law. The secretary must be appointed by the directors. It is advisable to have a resident secretary if any papers are to be signed for the local authorities.
The Cyprus Company Law requires the presence of the registered office of the company on the territory of Cyprus. Our office offers all the services of a virtual office to assist in the administration of the company.