Cyprus is the third biggest island in the Mediterranean Sea, its  territory is 9251 sq km large. Population - 700 000, official language - Greek and Turkish. National currency is Cyprus pound (CYP), 1 CYP = 1, 96 USD

Cyprus

Advantages Low taxation - 10% tax of net profit (since 01.01.2003) Has double tax treaties with the 33 countries Hard constraint of confidentiality Disadvantages Requirements: -bank reference to real owner of the company -information about the shareholders: name, address, nationality, place of residence But this information is confidential Corporative legislation Companies Act - 1968, modification of act - 1977, 1979, 1985, 1986, and 1990 Type of the company IBC Authorized business activities All and any activities not prohibited by the law, except banking, insurance, reinsurance, financial services Prohibited activities Can not trade with resident individuals or companies situated in Cyprus Taxation This integration contains a uniform corporation tax rate of 10%, payable by local and international business companies alike starting from 1 January 2003 The dividends paid to the Cyprian tax residents are subject to the taxation under the rate of 15 % basing on prospective distribution of 70 % from 90 % of the profit, which remain after paying the 10 % corporate tax Dividends paid to foreign corporations and foreign individuals will be exempt from withholding tax Name of company Name of the company must not be identical or confusingly similar to the existing ones The name must end on words Limited or Ltd Equity capital of the company The minimum amount of declared equity capital makes 1000 CYP Recommended equity capital 5000 CYP, divided into 1000 shares par value 1 CYP Shares Emission of registered shares with par value only Shareholders - Minimum number - Nominal shareholders - Holders of trust equities - Breakdown of shares when registering One, natural or legal entity Permitted Permitted Minimum number - two Does the law provide for non-disclosure of the information? - About actual owner of the company - About bank operations No Yes Directors - minimum number - nationality and citizenship - status One natural or legal entity No requirements All the powers apart from those falling into the exclusive competence of members (determined by articles of association) On the territory of Cyprus there has to be - registered office - registered agent - local secretary Required Not required Required (one natural or legal entity) Holding of the meeting of -shareholders -directors Annual meeting required Not required Mandatory - keeping of accounting records - annual account - presentation of auditor's conclusion Yes The company submits annual account to the Central Bank of Cyprus and declaration of profit to tax institutions Yes Information at disposal to the third party Names and addresses of directors and shareholders, registration address, statute and memorandum, credit claim Documents held at registration office Register of shareholders, directors and secretaries, credit claim Agreements on exemption from double taxation All countries of CIS (except Georgia), Austria, Greece, Romania, Bulgaria, Hungary, Canada, Ireland, Slovakia, Czech Republic, Italy, Sweden, Denmark, Kuwait, Great Britain, France, Norway, USA, Germany, Poland, lapsed Yugoslavia, China, Malta, Syria, Belgium, Egypt, Finland Currency control No Term of incorporation 4 weeks Costs of registration of company Look for: Costs of registration and service Financial year ending on Look for: Annual support of companies Possibility to purchase a ready-made company Yes, look for: Ready made companies

The taxation

The taxation of the worldwide profit of the foreign-controlled companies no more depends on a place of registration, but from the place of their control and management. Companies registered in Cyprus, but managed and controlled from abroad will only be taxed in Cyprus on their Cyprus-source income. The given companies will be exempted from foreign dividends and interest tax from the capital, and from the taxation of the profit of permanent mission abroad. They can use foreign tax credit and offsets of losses incurred abroad. The given companies will be deprived of opportunity to use by protection of agreements on elimination of the double taxation, but at the same time conditions on information, interchange, which is a component of such agreements, will not be applied.

All the above benefits will make Cyprus an ideal place to locate a holding company with the ability firstly to take dividends out of the operating company free of withholding tax or at a lower rate of withholding tax, either by virtue of the extensive double taxation treaty network which Cyprus has or  under the EU Parent/Subsidiary Directive, secondly to enjoy the tax exemption of dividends and capital gains from local tax and thirdly to take dividends out of the holding company without giving rise to any tax charge in the holding company's jurisdiction, which is generally the most difficult step.