If you are planning on setting up a business/Company in Cyprus the first thing that Exsus will do is to register your Cyprus Company, a relatively simple procedure and is normally accomplished within a reasonable time frame.
Incorporation of Cyprus Companies
Non-Cypriots (natural persons or other entities) do not require any permit to hold shares in a Cyprus Company. The first step for setting up a Cyprus Company is to apply to the Registrar of Companies for approval of the Company’s name. Please note that we always have available a list of already approved names. Secondly, an application is made to the Registrar of Companies to register the company in accordance with Cyprus Law. The following information is required:
- The name of the Company.
- The names, addresses and nationalities of the directors, company secretary and shareholders, together with copies of their passports (main pages only). Our form (which can be downloaded from our website) should be completed by each registered or ultimate beneficial shareholder, director and company secretary.
- Reference letter for each shareholder. We require a reference letter from a bank, or professional accountant or lawyer.
- The number and class of Shares held by each shareholder.
- The amount of Authorised and Issued Share Capital.
- The company’s main activity. Our standard Memorandum of Association of a company contains objects that cover almost all possible activities.
- There is no minimum number of Directors.
- The registered office must be in Cyprus – our address may be used.
- Local auditors must be appointed.
- There is no minimum number of shareholders for a private company.
- Nominee shareholders can be appointed. By the use of nominees, complete confidentiality is ensured.
On incorporation you will receive your Exsus Corporate Pack.
- Certified Memorandum & Articles of Association in the Greek language, together with an English copy as translated by us.
- Apostilled Certificates of Incorporation, shareholders, directors + secretary and registered office, in Greek or English.
- Share Certificates in Greek or English.
- A company Stamp.
- Declaration of Trust (when appropriate).
- Undated, signed share transfer documents and undated signed resignation letter by nominee shareholder and directors (respectively if nominees are opted.
- Indemnity Letters, whereby the beneficial owners indemnify the nominees for their actions.
Audited Financial statements must be submitted annually to the income tax office and the audit must be carried out by an auditor authorised under Cyprus Law. Also, an annual Return, accompanied by a Greek Translation of the Financial Statements, must be filed with the Registrar of Companies, giving details of Directors, shareholders and registered office address.
Double Tax Treaties
With its entrance into the European Union and the implementation of new corporate legislation in 2003, Cyprus has become one of the most attractive holding jurisdictions in the world. Cyprus has linked its Global network of over 75 double income taxation treaties (2006) with an outstanding holding regime. This very powerful combination provides the following major advantages:
- Full participation exception for resident companies for dividend income received from subsidiary companies.
- Application for EU Parent /Subsidiary Directive (providing a qualified tax exemption for the inter- EU cross border distribution).
- Freedom to distribute dividends, interest and royalties, tax free, from Cyprus to any country.
- No minimum holding period for shares prior to liquidation.
- No controlled foreign corporation (CFC) legislation.
- No substance requirements for Cyprus Holding Company or underlying subsidiaries.
- Full tax exemption on the receipt of capital gains from the disposal of shares into a subsidiary.
- Freedom to distribute capital gains tax from the disposal (or liquidation) of the shares of the Cyprus holding Company tax free to any country.
- No capital taxation to capitalise Cyprus Companies.
- Net worth taxes during the life of a Cyprus Company.
Information on Cyprus Companies
Cyprus has, especially after EU accession in 2004, rapidly developed into one of the most prominent financial centres in Europe. Cyprus has one of the lowest corporate tax rates in the EU (12,5 %), a close-to-perfect tax exemption system for holding company income, and double tax treaties in place with around 45 countries. Cyprus does not levy any withholding tax over outbound dividends or interest. There is normally no withholding tax over royalties either. Cyprus is a politically and economically stable country where English, being one of the country’s official national languages, is widely spoken.
- Currency: Euro
- Language: English/Greek
- Type of law: Common law
- Type of company: Private Company Limited by shares.
- Principal Corporate Legislation: The companies Law Chapt.113 and The Income Tax laws of 2002. The Special Contribution for Strengthening the defence of the Republic laws.
More detailed information is available upon request.