Cyprus

Overview

Cyprus is by far one of the most well-known jurisdictions for registration of both resident and non-resident companies. Company in Cyprus is a unique instrument for managing flows of dividends, interest, royalties and all passive flows that fall under agreements about elimination of double taxation. Before 2002 Cyprus had the lowest corporate tax rate in Europe of just 4.25%. In 2002 with inclusion of Cyprus in the European Union and a need to harmonize tax system accordingly, the tax rate was increased to 10%. However, even after the country lost its status as an offshore, Cyprus is still very attractive place for businesses from the Baltic States, Russia and CIS countries. Despite the changes, tax rates in Cyprus are still very low in comparison to other countries, and bureaucratic procedures are not tiresome at all. From the perspective of tax policy Cyprus is still one of the most liberal EU countries, and this fact is widely used by intelligent businessmen.

Currency – Euro. Official languages are English and Greek. Business language is English.

Additional information

Company type

Private Limited Company (Ltd.)

Company Directors

Quantity: minimum - 1.

Status: physical or legal bodies.

Residency: for obtaining a status of resident, the majority of directors should be residents of Cyprus, the rest can be residents of any country.

Information about directors: Public and stored in Cyprus registrar of companies.

Nominal directors: permitted.

Company shareholders

Quantity: minimum – 1.

Status: physical or legal bodies.

Residency: of any country.

Information about shareholders: public and stored in Cyprus registrar of companies.

Nominal shareholders: permitted.

Company secretary

Quantity: minimum – 1.

Status: physical or legal bodies.

Residency: should by Cyprus resident.

Information about secretary: public and stored in Cyprus registrar of companies.

Nominal secretary: permitted.

Share capital

Standard declared capital – 1,000 EUR. Minimum paid-in capital – 250 EUR.

Information about real owner of a company

Information about real owner is provided only to a registered agent, and is confidential.

Submission of Annual Report

Annual report for the first year should be submitted after 12 months from the registration date.

Submission of Financial Statements

Should be confirmed by an auditor in Cyprus and is submitted annually.

Taxation

Corporate income tax rate – 10%.

Agreements about elimination of double taxation

Agreements about elimination of double taxation are signed with more than 30 countries, including European countries, the US, Canada, Russia and CIS countries.

Is the jurisdiction “blacklisted”

Belarus: yes

Latvia: no

Russia: no

Ukraine: no

Kazakhstan: yes

Uzbekistan: yes

Term of company registration

12-17 of working days; term of receipt of complete set of documents – 4 weeks.

Set of registration documents

  • Memorandum & Articles of Association in Greek language - Original stamped from Registrar of companies certifying as true copy
  • Certificate of registration in Greek - Original
  • Certificate of registration in English - Original stamped from registrar as translated true copy
  • Certificate of Registered office - Original in English
  • Certificate of Director and Secretary - Original in English
  • Certificate of Original Shareholder
  • Application for change of shareholder dated
  • Power of Attorney - Original certified and apostiled

VAT registration

This service is offered to clients that work with companies in Cyprus inside the EU.

The registration procedure takes from 3 to 7 working days. Once per quarter an auditor compiles and submits VAT report. Cost of compilation of report is included in yearly company maintenance fee and depends on the number of operations.

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