Cyprus is an island nation in the eastern Mediterranean Sea. It is a former British colony with close to 900,000 local and foreign inhabitants who speak English, Greek, and Turkey and transacts in Euros and dollars. Its history, culture, and location are perfect for people looking to start offshore businesses in the country. Its legal framework makes it easy to incorporate companies inside the jurisdiction. In addition, its well-connected economy and tax benefits provide many business opportunities for investors. So, are you looking to register and form an offshore company in Cyprus for trading or holding purposes? Here is everything you would need to know.
Cyprus Company Registration
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Cyprus is an island nation in the eastern Mediterranean Sea. It is a former British colony with close to 900,000 local and foreign inhabitants who speak English, Greek, and Turkey and transacts in Euros and dollars. Its history, culture, and location are perfect for people looking to start offshore businesses in the country. Its legal framework makes it easy to incorporate companies inside the jurisdiction. In addition, its well-connected economy and tax benefits provide many business opportunities for investors. So, are you looking to register and form an offshore company in Cyprus for trading or holding purposes? Here is everything you would need to know.
Once you register an offshore Cyprus company, majorly tax incentives and asset protection, Cyprus has an income tax rate of 12.5%, which is the lowest in the EU. More benefits are as follows;
A stable political environment and economy to do business
Government support for private enterprises
A reliable banking and credit system
Excellent communications networks
Favorable climate due to the strategic location of the island
Economic cover and protection from the European Union
Free profit transfer for non-resident investors
No withholding tax on interest, royalty payment, and dividends for businesses
Tax exemption on capital gains
Tax exemption on salaries of employees working outside the country
It usually takes at least 10 working days to register and incorporate a Cyprus company offshore or local.
The fee to set up the company documents is around 460 Euros, and express incorporation fees is around 300 Euros. To register an office for the first year of operation is around 250 Euros. This totals to around 1000 Euros for registration and service depending on the legal services you use.
Local and foreign investors are free to open offshore companies in Cyprus either as natural or corporations. There are no requirements for specific nationality or residence. Apart from that, the following conditions need to be met for formation to be possible.
Owners of the company must settle on a trading name and list it with the Trade Register.
The offshore company must have at least one shareholder and at most 50
The minimum share capital for opening an offshore company is 1000 Euros
The offshore Cyprus company must have a legal address in Cyprus even if it intends to carry its operations outside the country
The company must be incorporated according to its certified statutory documents
Offshore company registration is treated like any other local company registration. Therefore, the documents that need to be prepared are the same for all legal entities in Cyprus. They are as follows:
Original Memorandum
Articles of Association
Application forms as issued by Trade Register
Trading name reservation form
Documents with information on shareholders and directors
The company prepares incorporation documents with the assistant of a Cypriot lawyer
A company name is reserved with the Companies Register. To ensure a unique name pick, up to 3 different names are submitted for approval
A corporate bank account is opened for share capital and transactional deposits
The incorporation documents are forwarded to the Trade Register in Cyprus
The company then waits to be issued with a registration certificate; it then registers for tax and VAT and can begin its operations. Form 162 will be filled to obtain a Tax Identification Number and from 101 for VAT certification.
NB: All certificates, licenses, and permits for business operations must be obtained with local authorities inside the country.
The incorporation process takes around ten days to complete.
Yes, offshore company registration can be done remotely in case the owners outside the country. The procedure is undertaken through a power of attorney.
There are no restrictions to the form companies can take as long as they are engaged in legitimate trade and holdings. The most common entities registered are Limited Liability Companies such as Public Limited Companies (PLC), Limited Companies (LTD), and Limited Liability Partnerships (LLP).
No, offshore companies in Cyprus do not need a resident director. They, however, must have a local company secretary. Local company secretary services are readily available in the country.
Offshore companies are subject to a 4.25% tax on profits. This applies to companies with branches and management inside Cyprus. However, tax is exempt from profits derived from sources outside the country.
Cyprus is an island nation in the eastern Mediterranean Sea. It is a former British colony with close to 900,000 local and foreign inhabitants who speak English, Greek, and Turkey and transacts in Euros and dollars. Its history, culture, and location are perfect for people looking to start offshore businesses in the country. Its legal framework makes it easy to incorporate companies inside the jurisdiction. In addition, its well-connected economy and tax benefits provide many business opportunities for investors. So, are you looking to register and form an offshore company in Cyprus for trading or holding purposes? Here is everything you would need to know.
Once you register an offshore Cyprus company, majorly tax incentives and asset protection, Cyprus has an income tax rate of 12.5%, which is the lowest in the EU. More benefits are as follows;
A stable political environment and economy to do business
Government support for private enterprises
A reliable banking and credit system
Excellent communications networks
Favorable climate due to the strategic location of the island
Economic cover and protection from the European Union
Free profit transfer for non-resident investors
No withholding tax on interest, royalty payment, and dividends for businesses
Tax exemption on capital gains
Tax exemption on salaries of employees working outside the country
It usually takes at least 10 working days to register and incorporate a Cyprus company offshore or local.
The fee to set up the company documents is around 460 Euros, and express incorporation fees is around 300 Euros. To register an office for the first year of operation is around 250 Euros. This totals to around 1000 Euros for registration and service depending on the legal services you use.
Local and foreign investors are free to open offshore companies in Cyprus either as natural or corporations. There are no requirements for specific nationality or residence. Apart from that, the following conditions need to be met for formation to be possible.
Owners of the company must settle on a trading name and list it with the Trade Register.
The offshore company must have at least one shareholder and at most 50
The minimum share capital for opening an offshore company is 1000 Euros
The offshore Cyprus company must have a legal address in Cyprus even if it intends to carry its operations outside the country
The company must be incorporated according to its certified statutory documents
Offshore company registration is treated like any other local company registration. Therefore, the documents that need to be prepared are the same for all legal entities in Cyprus. They are as follows:
Original Memorandum
Articles of Association
Application forms as issued by Trade Register
Trading name reservation form
Documents with information on shareholders and directors
The company prepares incorporation documents with the assistant of a Cypriot lawyer
A company name is reserved with the Companies Register. To ensure a unique name pick, up to 3 different names are submitted for approval
A corporate bank account is opened for share capital and transactional deposits
The incorporation documents are forwarded to the Trade Register in Cyprus
The company then waits to be issued with a registration certificate; it then registers for tax and VAT and can begin its operations. Form 162 will be filled to obtain a Tax Identification Number and from 101 for VAT certification.
NB: All certificates, licenses, and permits for business operations must be obtained with local authorities inside the country.
The incorporation process takes around ten days to complete.
Yes, offshore company registration can be done remotely in case the owners outside the country. The procedure is undertaken through a power of attorney.
There are no restrictions to the form companies can take as long as they are engaged in legitimate trade and holdings. The most common entities registered are Limited Liability Companies such as Public Limited Companies (PLC), Limited Companies (LTD), and Limited Liability Partnerships (LLP).
No, offshore companies in Cyprus do not need a resident director. They, however, must have a local company secretary. Local company secretary services are readily available in the country.
Offshore companies are subject to a 4.25% tax on profits. This applies to companies with branches and management inside Cyprus. However, tax is exempt from profits derived from sources outside the country.
