Company Incorporation and Services in Cyprus

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Company Incorporation and Services in Cyprus

Company Incorporation and Services in Cyprus

In Cyprus you can register either a private or a public company. A private company can be established by one or more people and a public company can be established by seven and more. There is no limitation in share capital but it is common for a company to have at least €1,000.

A Cypriot company needs to have a secretary and a registered office in Cyprus which can be used as the business address of the company. A director can be either a foreigner or a Cypriot. Usually the majority of companies have Cypriot directors. Cypriot companies are required to have audited financial statements, proper bookkeeping and they have to submit an annual corporate income tax return.

Cypriot Companies are used for:

  • Holding companies – Cyprus is part of EU therefore offers a gateway. Receiving and paying dividends free of withholding tax. Also Cyprus has signed tax treaties with Russia and Ukraine for receiving dividends suffering no or little withholding tax and paying dividends without deduction of withholding tax.
  • Finance and treasury companies – a Cyprus company can receive interest on loans to EU group companies with no withholding tax and can pay interest without deduction of withholding tax. Other key jurisdictions with no withholding tax on interest include Russia and Ukraine. Cyprus companies trading in securities have no tax liability because income and gains on disposal of such securities are exempt from tax.
  • Ship owning and management companies – Cyprus is the only EU member that has an Open Registry approved regime with a legally endorsed Tonnage Tax System, which was introduced with the Merchant Shipping Law in 2010 and covers the three main shipping activities: ship owning, ship management, and chartering. Other than Tonnage Tax, there is no tax on shipping profits, dividends paid from shipping profits, estate duty or capital gains tax and no stamp duties on documents or mortgage deeds. There is also no income tax for seafarers on ships that carry Cyprus flag.
  • Oil and gas exploration and extraction companies – combined with Cyprus’s permanent establishment exemption, exploration and extraction activity can be undertaken free of Cypriot tax.

iMPK Global Business Law Firm with its team of Cyprus Lawyers and Chartered Accountants provide ready-made or customised incorporation of all types of Cyprus companies. Once a company has been incorporated, our associated offices will provide a domiciliary service, which includes the provision of company secretarial, registered office and nominee shareholder services. Full management services from our associated offices licensed corporate directors are also available.
Trust Formation and Trustee Services in Cyprus
Trusts have many applications and advantages, including the protection and preserving of assets, tax planning or just avoiding the expense and delays of obtaining probate under a will. They also provide a high degree of confidentiality.
An international trust in Cyprus can be established in a short period of time in a straightforward procedure. Cyprus trust law is contained in both statute and case law with many of the principles of equity and English law. The primary statute for Cyprus international trusts is the International Trust Law, which defines a Cyprus international trust as a trust in which:

  • The year preceding the settlement of trust, the settlor is not a resident of Cyprus
  • The year preceding the year of settlement of the trust, the beneficiaries are not residents of Cyprus
  • One of the trustees must be a Cyprus resident.

The validity of a Cyprus international trust and the disposition of property to the trust are protected against claims brought for contravention of any foreign laws nor are they affected by the inheritance or succession laws of Cyprus or of any foreign jurisdiction.
Tax laws in Cyprus provide significant opportunities for Cyprus International Trusts. Non Cyprus residents who are beneficiaries are subject to tax in Cyprus on income and profits of the trust derived only from sources within Cyprus, while Cyprus resident beneficiaries are subject to tax in Cyprus an income and profits of the trust derived from sources within and outside Cyprus.

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at .Tel. +357 99345000 – Fax +357 25 660097

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