On this page, I’m going to explain why Cyprus is the ideal location to form your business and how you can pay ZERO tax.
Hey,
I'm Alan, an advisor at OOBAC...
and I've helped numerous international clients establish their businesses in low- or zero-tax jurisdictions.
Here, I specifically explore a complete guide to starting a company in Cyprus.
I’m going to cover the benefits, legal requirements, and step-by-step process to establish your company successfully.
So stay tuned to the end of this page and read the whole thing because I will show you why Cyprus could be a perfect place for your business.
Therefore, If you are looking for an offshore jurisdiction inside the EU, Cyprus could be the best option for you…
or send us your questions using the following form
Outline of Cyprus
Outline of Cyprus
The Republic of Cyprus is a small island in the eastern part of the Mediterranean. The climate of Cyprus is subtropical. The capital city is Nicosia. In 1963, Cyprus became independent from England.
The country is divided into 80% of Greek residents in the South and 20% of Turkish residents in the North. Cyprus is famous for its fabulous beaches.
Since May 1961 Cyprus joined the Council of Europe and participation in all events. In addition, Cyprus is a member of the Organisation for Security and Cooperation in Europe (OSCE). The main partners for exporting are Ireland, the UK, and Greece, while its main import partners are Greece, the UK and Italy.
Benefits
of Cyprus Company Formation
- Tax Advantages:
Let's start with the tax advantages.- The Low Corporation Tax Rate: Cyprus has one of the lowest corporate tax rates in the European Union at 12.5%, making it very attractive for companies seeking to maximize profitability.
- 0% Tax on Capital Gains, Dividends, and Share Sales: The zero taxation of capital gains, dividends, and share sales encourages businesses to grow and reinvest.
- Firms engaged in software development and intellectual property are eligible for a 2.5% special tax rate on their profits, according to special tax rates for these industries.
- Double Taxation Treaties: Cyprus has double taxation treaties with over 60 countries, ensuring income earned in Cyprus is not subject to taxation elsewhere.
- Strategic Location:
The geographical position of Cyprus is yet another important advantage.- Geographical Position: Geographically, Cyprus acts as a gateway to these significant markets from the junction of Europe, Asia, and Africa.
- Gateway to the Middle East, Africa, and Europe: Its strategic location makes it perfect for companies trying to grow as it gives simple access to important worldwide markets.
- Business-Friendly Environment
Cyprus' business-friendly atmosphere facilitates effective operations.- Developed Infrastructure: Cyprus has modern housing, transport, and phone networks, which help businesses run smoothly.
- Supportive Legal Framework: Because Cyprus's laws are in line with EU standards, it is a safe and stable place to do business.
- Efficient Company Registration Process: The company registration procedure is simplified and efficient, allowing firms to get started immediately.
- Additional Benefits
There are extra benefits to establishing a corporation in Cyprus.- Skilled, Multilingual Workforce: Cyprus boasts a highly competent and multilingual workforce, making it simpler to find and retain personnel.
- Strong Legal Protection: The government provides strong legal protection for enterprises and intellectual property.
- Attractive Living Conditions: With a good standard of living, sophisticated cities, and a nice climate, Cyprus is an appealing area to live and work.
Price: 2400.00 EUR(3592.56 CAD)
Courier fee: 70EUR (104.78 CAD)
Cyprus Residency/Visa and Cyprus Passport
Cyprus Residency/Visa and Cyprus Passport
Having a Cyprus company give you a chance to be a Cyprus resident. You can apply for long time visa or working visa. It is possible to obtain Cyprus passport . For more information please contact us.
(1). Limited Liability Company (LLC):
Small and medium-sized firms choose Cyprus LLCs because of their simplicity and flexibility. Shareholders' personal assets are protected against the company's debts. The registration process for a Cyprus LLC is extremely simple, making it desirable to individuals who want to get started right away. This business model is ideal for companies seeking easy management and cheap operating costs. It simplifies company operations.
(2). Public Limited Company (PLC):
A PLC can raise funds by selling shares to the public,, which allows for large capital investment. This structure is more sophisticated and must comply to severe regulatory standards. However, it has the advantage of obtaining cash through public share offerings and trading on stock markets. Suitable for Larger Businesses Looking to Raise Capital via Public Shares: PLCs are appropriate for larger organizations that want to increase their financial base and market presence. This structure is suitable for enterprises with plans for expansion and public funding.
(3). Private Limited Company (Ltd/ Limited):
it means a company is a tax resident where its actual day-to-day operation and decisions are made.
For instance: a firm formed in Hong Kong but effectively run from India would be deemed an Indian tax resident.
1. Company Name Approval
The selected business name must be distinctive and meet the Registrar of Companies' criteria. The approval procedure guarantees that the name is not in conflict with any existing firms and fits regulatory requirements.
2. Required Documentation
- Memorandum and Articles of Association: These documents define the company's goals, governing structure, and internal policies. They are critical to the legal foundation of the firm.
Don’t worry, we do provide the standard and English versions for you.
- Identification and Proof of Address or Utility Bills: Directors and shareholders must provide valid identification and evidence of address. This paperwork provides transparency and adherence to regulatory obligations.
- Bank Reference Letters or statements: These papers are frequently required to authenticate the name and address of the company's personnel, adding security and ensuring compliance with anti-money laundering laws.
3. Registered Office and Company Secretary
- Registered Office: Every business has to have a registered office in Cyprus, the official address for letters and legal documentation. The registered office has to be an actual place, not only a mailbox.
- Company Secretary: A company secretary has to be appointed to conduct administrative duties and keep company documents. The secretary is responsible for ensuring compliance with statutory responsibilities and filing required paperwork with the authorities.
OOBAC provides registered office and secretary services so that you can register your company smoothly.
4. Directors and Shareholders
- Requirements and Responsibilities: A minimum of one director and one shareholder are necessary. Directors are in charge of the company's administration and control, whilst shareholders own it and have the opportunity to vote on critical decisions.
- OOBAC Nominee Directors and Shareholders Services: Appointing nominee directors and shareholders provides confidentiality and privacy for beneficiary owners. It also plays a crucial role in determining the tax residency of the company.
We do provide resident and non-resident nominees to help you plan your business tax residency. Please contact us for more information.
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Timeframes and Costs
Timeframes and Costs
- Typical Duration: The registration process typically takes about 2 to 4 weeks. This timeframe includes the approval of the company name, preparation of documents, and registration with the relevant authorities.
- Cost Breakdown: The costs vary depending on the intricacy of the business structure and the demand for expedited services. It is best to connect with our expert business adviser for a thorough cost estimate.
- Insufficient Knowledge of Legal Requirements: Before beginning the registration procedure, ensure that you are aware of all applicable legal requirements. Lack of information might cause delays and noncompliance difficulties.
- Inadequate Preparation of Required Documentation: paperwork are appropriately produced and submitted. Missing or inaccurate paperwork might result in considerable delays.
- Ignoring Tax Compliance Requirements: To prevent penalties and legal complications, register for VAT and acquire a TIN. Compliance with tax legislation is critical to the effective running of the business.
- Underestimating the Importance of Professional Assistance: Engage legal and accounting professionals to ensure a seamless registration procedure. Professional advice can help you avoid costly mistakes and assure compliance.
- Failure to Prepare for Ongoing Compliance: Prepare for yearly returns, audits, and licence renewals. Ongoing compliance is required to ensure the company's legal position.
- Underestimating the value of a business plan: Create a concise company strategy with specific goals and financial estimates. A well-thought-out plan is critical to the success and sustainability of the firm.
- Not Considering Intellectual Property Protection: Register trademarks, patents, and copyrights to protect your company's ideas. Intellectual property protection is critical for protecting business assets and retaining a competitive advantage.
Ongoing Compliance and Maintenance
- To ensure compliance, submit annual reports and perform financial audits. Regular audits promote openness and accountability.
- Renewal of business licences and permits: Maintain timely renewal of any necessary business licences or permits. Keeping up with regulatory regulations is critical for continued operations.
- Renewal of Government Fee (Levy): The minimum government fee of EUR 350 must be paid each year before every June.
- Keeping Accurate Accounting Records: Keep accurate and up-to-date accounting records. Proper recordkeeping is essential for financial management and regulatory compliance.
Utilizing Professional Services
- Professional services assist in guaranteeing compliance while also providing essential support. Experts in law, finance, and corporate services may help you navigate the complexity of business operations. Professionals may handle documentation, registration, tax planning, and other tasks, leaving you to concentrate on your primary company operations.
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Why Oobac
WHY
work with OOBAC
We have been in this business for more than 15 years.
We have successfully opened more than 1,000 quality overseas bank accounts.
We find the most suitable bank for your needs.
We will guide you on how to use your e-banking if your English is not enough.
We provide free consultation via email, Skype, Line, and phone.
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