Cyprus

Cyprus is a Presidential Republic, a Member State of the European Union since 2005. Cyprus is a politically stable country with multi-party democracy.

Cyprus has been an independent republic since 1960, population – 850,000.

The legal system of Cyprus is based on the English Common Law.

Company limited by shares (LTD) incorporated under the Cyprus Companies Law (identical to the 1948 Companies Act of the UK) can conduct business in any part of the world including Cyprus.

Tax RateNotes
Income (Corporate) tax12.5 %* non-resident company
Received dividends0 %certain exceptions
Paid dividends0 %
Profit from trading in Securities0 %
Capitals gains tax0 %exceptions if any immovable property is owned
Interest received (trading)12.5 %income tax
Interest received (passive)30 %defence tax
Interest paid0 %
Royalty income12.5 %
Royalties paid0 %if the right is used outside Cyprus
* if the director (management outside Cyprus) is a non-resident, a Cyprus company is not taxable in Cyprus.
Such a company cannot benefit from any Double tax treaties and cannot obtain a tax Certificate declaring it to be a resident of Cyprus.
Double tax treaties with 44 countries

Advantages

  • Member State of the EU
  • The lowest income tax rate in the EU
  • Good taxation rules
  • An LTD can be used as a holding company, for international trade, asset protection, as an investment company, etc.

Disadvantages

  • An income tax of 12.5 % for resident companies
  • Annually required to file an audited Financial Statement with the Register and tax authorities
Name Must end with the word “Limited” or “Ltd”
Share capital The standard authorized share capital is EUR 1 000, not required to be paid before the company is incorporated.
Stamp duty is payable, calculated on the basis of the value of nominal capital
Shareholders A minimum of one Shareholder, corporate Shareholders are allowed
Director A minimum of one Director, corporate Directors are allowed
Secretary Required, corporate Secretaries allowed. Must be a resident of Cyprus
Registered Address Required
Annual reporting Annual reporting (form HE32) to the Registrar.
An audited Financial Statement is to be provided annually to the Registrar and tax authorities

Company formation packages & prices
Basic
Plus
Company formation, preparation of documents
Incorporation fee
Registered address for one year
Resident Secretary fee for one year
A set of notarized and apostilled registration documents
Company seal
Shareholder’s services for one year -
Corporate director’s services for one year -
Issue of a General Power of Attorney (GPA), apostilled -
The basic currency for invoice issuance – USD

Annual levy to the Register (if the company was registered before the 1st of July), EUR 350350

Timeframe

Incorporation of a new company along with the preparation of apostilled documents 25 business days

Annual support (beginning with the second year)
Basic
Plus
Government fee
Informative annual report (HE32)
Registered address for one year
Resident Secretary fee for one year
Shareholder’s services for one year -
Corporate director’s services for one year -
Issue of a General Power of Attorney (GPA), apostilled -

Annual levy to the Register (must be paid before June 30th), EUR
350350

The basic currency for invoice issuance – USD


AuditRequired


Information that has to be provided by the customer

Incorporation process is possible as soon as the Due Diligence procedure is completed. Please fill in and send us the Order form; immediately afterwards, we are going to send you the information on the document required within the boundaries of the Due Diligence procedure.

1. Consult to determine the order. To choose a jurisdiction for a company we offer a consulting services:

  • via telephone +(371) 67280645
  • via e-mail: consult@bbp-net.com
  • via online question form found in the header Ask an expert
  • Navigation through our web site will help you to determine: benefits, prices and requirements in respective jurisdiction

2. Complete an application form. After you have made your decision, please complete one of the online application forms:

3. Issue of invoice and settlement of order. Within one business day of filling in the online application form, you will receive an invoice via e-mail. You can pay the invoice using money transfer to the BBP bank account provided in the invoice or via Internet, using PayPal. We suggest using PayPal only in case the amount is less than 200 EUR.

ATTENTION! The invoice number should be written in the details of payment!

A payment acknowledgement will be sent to you as soon as we will receive the payment.

4. After we receive the required Due Diligence documents from you, we shall commence the incorporation or the preparation of the documents required in order to carry out the acquirement of a ready-made company.

5. Document delivery to the client. Documents are sent via international courier mail.

6. Further supporting services. We guarantee to inform, assist and provide you with all the necessary services for further support of the company.

Get acquainted with jurisdiction legislation free of charge!

Select one* legislative act that you would like to receive free of charge:



* Required fields

*Please note that we shall only provide one document for free. If you would like to receive more information please contact us!

Absolutely all businessmen, whether beginners or professionals in their goals, are interested in the stability of doing business and forming an impeccable reputation. Eventually every entrepreneur comes to the idea of creating his own offshore abroad. Our company offers you the offshores Cyprus – the third largest island in the Mediterranean and a stable state.

Cyprus is a prosperous country with a developed infrastructure and a long-playing area for further development. The republic is recovering rapidly after a deep economic crisis, many international rating agencies have noted the growth rate of the country’s economy. In Cyprus, there are offices of many European companies, there are branches of banks and major consulting agencies. We can say only one thing: Cyprus is an island that has become an attractive place to open your own offshore.

Company registration in Cyprus and advantages of dealing

After the state’s accession to the European Union, the government created an efficient economic system with favorable taxation. Today, the tax rate on profits is 12.5%, dividends are taxed at a rate of 0%.

All these existing agreements and laws allowed creating a favorable zone in Cyprus for the creation of holding and investment companies. Corporate tax does not affect tax liabilities, the government only receives profit from the company’s trading activities. Moreover, Cyprus is interested in cooperation with the Russian Federation: the export of Cypriot services and goods to Russia in 2015 amounted to 1.7 billion Euros, which proves the close cooperation of the countries.

Since 2003, company formation in Cyprus is registered in accordance with the applicable law on companies. The new system of taxation is based on the residence and territoriality of the company. Individuals and legal entities are taxed only in terms of income received from local sources. Thanks to the new code in Cyprus, one of the lowest tax rates in Europe operates!

What is necessary to form a company in Cyprus?

The mandatory requirements for your company are the following:

  • Registration office in Cyprus
  • The presence of a local secretary, who may be a legal entity or an individual.
  • Minimum capital – 1000 Euro
  • The minimum number of shareholders and directors is 1 person

Specialists of our company will help you quickly and efficiently set up company in Cyprus. We are for a promising and long-running business!