Cyprus company formation, Company Formation, offshore company formation, offshore company, limited company

Company Formation Cyprus

Company Formation Cyprus: Comparative Overview of Services:

Lawyer’s office in Cyprus takes charge of setting up the companyYESNot as a rule
Tax arrangements through tax consultants specialising in international tax law*YESNot as a rule
Proper registered office can be set up**YESNot as a rule
Essential “documentation” required to be presented in accordance with Cypriot law are provided free of charge (Draft contracts, free agreement, staff contract, accounting documentation etc…)YESNot as a rule
A trust director can be appointed who will sign contracts on behalf of the company***YESNot as a rule
Swiss deposit account  included in the package free of chargeYESNot as a rule
If setting up an agency or a branch office outwith Cyprus and trust services: carried out by the director of the Cypriot limited company ****YESNot as a rule
Opening of an account in Cyprus guaranteed, client does not need to travel to Cyprus***YESNOT the case with many “agencies”
Certificate of residence from the Cypriot tax office in the case of trust services****YESNO
Setting up of an offshore company as a shareholder of the Cypriot  limited company in order to conceal the true circumstances surrounding ownership (if a trust shareholder is not desired), at the same time “G20-proof”YESNot as a rule
Bookkeeping, VAT registration, annual accounts, tax consultants are English-speakingYESFrequently not the case
EU merger-directive measures, that is with regard to the merging of companies, for example YES Not as a rule

* In the case of most providers what is involved are agencies that simply set up companies, that is ones with no tax consultants specialising in international tax law.

**Proper registered office: merely having a registered office and/or “letter-box” is not a proper place of business in this sense.  ETC will set up a virtual office up to and including the provision of a reasonable office solution in Cyprus on request.

***Most providers only appoint a trust director who does not sign any contracts on behalf of the company outwith the statutory regulations. There is hereby a risk that must be assumed that the senior management of the company is not located in Cyprus (5 DTA: location of the senior management as the location of the business premises provided that there is no production facility in Cyprus, no construction work lasting longer than 6-9 months or a site for the exploitation of mineral resources in Cyprus).

**** ETC guarantees the opening of an account in Cyprus. The client does not need to travel to Cyprus in order to open the account.

**** The competent tax office for the client can demand a certificate of residence from the Cypriot tax office in order to guarantee that what is involved in the case of the Cypriot company is not just a sham company in this sense (an intermediary company in order to illegally get out of being subjected to domestic taxation).

Company Formation Cyprus: Taxation of Income

Double Taxation Agreements (DTA)Yes, with most countries
Corporate tax12,5%
Tax free receipt of foreign dividendsYes
EU Parent-Subsidiary Directive applicableYes
Holding company privilegesYes
Banking secrecyHigh
Nominee relationships allowedYes
Cyprus has double taxation agreements = DTA with most countries. Freedom of establishment in the European Union is applicable. From a European point of view, NO commercially equipped business operation is required for approval of a permanent establishment regarding the tax legislation in Cyprus, and neither is the proof of active business in Cyprus. The profit tax in Cyprus amounts to only 10%, irrespective of the amount of profits. Distributions of profits are not taxed.

Company Formation Cyprus: Our services

Aligning to the marks set above, we offer the following services on Cyprus:

  • Name check of proposed company name and its reservation
  • all official, legal and other fees accruing during the process of incorporation
  • preparation of Memorandum and Articles
  • generation of one complete set of corporate documents and certified translations
  • Formation of the corporation, entry in the commercial register
  • provision of registered address as per local legal requirement for the first year
  • provision of secretary of company for the first year
  • Establishment of an ordinary place of business
  • One (1) Company Rubber Stamp
  • Share Certificates
  • Power Of Attorney for 1 (one) year with apostil
  • Upon request: Establishment of a nominee director in the company’s country of residence, or a permanent director. Characteristics: Competent, multi-language trustee director, resident of Cyprus, active in the name of the company in a moderate scope (signing of business documents etc. in the name of the company incl. delivery, acting in the name of the company with third parties etc., signing of decisions of the board). Trustee director agreement included.
  • Upon request: Establishment of a nominee shareholder or bearer stock, if permitted by the respective country
  • New bank account setup in the name of the company with a bank in Nicosia, Cyprus, with VISA Card and Internet Banking facilities – the client (or any person he determines) will be the only signatory of the account
  • Tax registration
  • Tax Residency Certificate (TRC) with reference to Double Tax Treaties with apostil
  • V.A.T. registration
  • Referral to a tax adviser in the company’s country of residence for bookkeeping, annual reports as well as sales tax reporting.