The Republic of Cyprus is an island located in the Eastern Mediterranean, and is conveniently situated at the crossroads of three continents; Europe, Asia and Africa.
As a former British Colony, English is widely spoken throughout the island, with 80% of the population being relatively fluent in the language. The legal system is structured on its English counterpart, and is based on common law, with many Cypriot Lawyers having undergone their training in the UK.
The Republic of Cyprus is a free market economy providing vast opportunities for international business and efficient tax planning. With first-class legal and accounting services, and excellent air links with Europe, the Middle East and Asia, Cyprus is a great location to conduct business.
The following information will help you determine whether a Cyprus Company Formation is the optimum corporate structure to fulfil your international business objectives:
- Cyprus Company Formation allows interpreters to legitimately conduct business in Cyprus - and internationally - subject to a corporate tax rate of 12.5%, which ranks among the lowest rates in the European Union (EU). Furthermore, Cyprus is positively ranked as the world’s 20th freest Economy in the Heritage Organization’s 2012 index of Economic Freedom - a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
- Cyprus Company Incorporation can be made with 100% foreign ownership. For a Cyprus Private Company, a minimum of one shareholder and one director are required for company registration. Corporate directors and shareholders are permitted, and can be of any nationality.
- The formation of a Holding Structure is a great way to make sure assets are well managed in a way that results in strong growth. By having a Holding Structure it becomes easier to identify where improvements can be made to increase profitability
- Dividends paid to a Cyprus Resident Company are exempt from corporation tax, whether they are received from a foreign company (subject to certain conditions), or any other Cyprus Resident Company. There is also no withholding tax on dividends that are repatriated to a non-resident shareholder individual or company.
- Trading Companies can benefit from no withholding tax in Cyprus. This applies to everything; dividends, interest, etc. In addition, there is no capital gains tax. There is also no control of money, as you will find in most other EU countries.
- To avoid having to pay tax in more than one country, multiple double taxation treaties have been established. Cyprus has total of 45 (and counting) such agreements with other countries. By having these agreements, withholding taxes on capital gains, royalties, interest and dividends can be eliminated in some cases.
- A Cypriot Company is ideal for holding and investment purposes. Kaimakliotis and Co can assist clients in setting up a Cyprus Investment Firm (CIF), which would provide them with a license that would enable them to provide financial services, including brokerage and portfolio management. A major benefit of operating a CIF is that there is no tax on the income that is generated from financial instrument transactions.
- The voluntary winding up of a Cyprus Legal Entity is a three-stage process. Initially a board meeting must be held, where it is decided to proceed. A liquidator must be appointed at the meeting and relevant documentation must be filed. Finally, a Certificate of Dissolution must be obtained.
- You may choose to set up a bank account in Cyprus, choosing from among others Euro bank, Hellenic Bank, USB, Bank of Cyprus and many others depending from the clients individual needs.