Company Registration in Cyprus
Today, Cyprus is one of the most popular countries for opening an offshore company. Favorable investment climate combined with effective legislation creates the most favorable conditions for business development.
Which companies can be registered in Cyprus?
The most popular form is a limited liability company. Important! The name of the company must contain at the end the designation LTD, which serves as a marker of limited liability.
Features of the registration of a limited liability company in Cyprus
- The minimum share capital must be at least 1000 euros.
- The minimum number of shareholders is 1. It can be both legal and natural persons (including non-resident).
- The post of secretary is allowed to appoint only the resident of Cyprus (legal or natural person).
- The minimum number of directors of a company is 1. There are no requirements for the presence of Cyprus citizenship.
- You must provide confidential information about the beneficiaries.
- The company must be located in Cyprus (and have a local legal address).
- For the implementation of insurance and banking services, the company must obtain the appropriate license.
Offshore companies that operate abroad and receive profits there are exempt from taxation. The company is taxed (with profits – 12.5%, VAT – 19%) only in two cases:
- If the company does business through a Cyprus office.
- If profit is received in the territory of this country.
In Cyprus there is no exchange control. Also, the government of this country has concluded agreements with a number of other states on the avoidance of double taxation.