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As of the end of 2017, the growth of the economy of Cyprus has reached a record high in the last 10 years – 4%. This level of economic development in Cyprus was observed even before the world crisis of 2007-2008 years. It is not surprising that Cyprus is among the top 5 jurisdictions where residents from CIS countries are active.
What business will be interested in Cyprus offshore
Now on the island the most profitable spheres of activity, according to the Republican Statistics Department, are:
- Tourism and the sphere of hotel and restaurant economy;
- Wholesale and retail domestic trade;
- Export-import business and international trade;
- Holding structures for foreign trade;
- Intellectual property and copyright;
- Construction and real estate;
- Production agrosector.
Company registration in Cyprus: advantages of business jurisdiction
- Membership of the republic in the EU. This allows entrepreneurs to carry out export-import activities with other EU countries on free terms.
- Lack of currency control. Companies in the territory of the jurisdiction can conduct business in any freely convertible currency, receive dividends and interest, as well as withdraw income from business activities.
- Free company redomiciliation. Any company registered in the Cyprus zone may be transferred to another jurisdiction without changing the rights, obligations and loss of assets.
- Agreement on the avoidance of double taxation of Cyprus with 48 jurisdictions. This regulation allows companies-residents of the Republic, which conduct international business, to pay taxes only in the country of registration of the company.
- Minimum tax burden.
- Income tax – 12.5%.
- Defense tax – 3-30% (income from non-core activity, savings certificates or government bonds – 30%).
- Tax on income from capital gains – 20%.
- VAT – 5%, 9% or 19% depending on the type of activity.
- Repatriation Tax – payment of interest and dividends outside the Republic to the account of non-resident is not taxable, royalties outside the Republic to the account of non-resident – 5-10% (when using rights for the territory of the Republic, tax is not levied).
- Annual duty for all companies-€350.
- Emblem fee – € 0.05-35.
- Emblem fee for contacts with a fixed amount – up to 0.2% of the sum (but not exceeding €20 thousand).
It is at the expense of such favorable conditions already 26 thousand. Offshore companies are actively operating through Cyprus.
Open offshore in Cyprus: account registration procedure
To register an account you will need:
- Reinforcement of the source of income and current wealth of the beneficiary (account statements, documentary information about assets).
- A set of documents for beneficiary identification (KYC).
- For a legal entity for a period of more than 1 year – company balance sheets and financial statements at least for the last year.
- A document confirming the payment of income tax by the beneficiary in the country of residence.
- Description of the company's activities.
- The address of the company's registration in the jurisdiction (optional).
- Letter of recommendation (optional).
How to register a company in Cyprus and what are the peculiarities of functioning?
Package of documents for opening entities:
- Registration certificate in English and Greek languages;
- Apostilled constituent documents;
- Resolution on the appointment of the director;
- Certificate of shareholders, directors and secretaries;
- Certificate of shares;
- Confirmation of registration of the company's legal address;
- The ceiling of the meeting of founders;
- Certificate of commercial purity.
At least 1 shareholder and 1 director may be required to register the company, which can be both a physical and a legal entity. If the future company plans to deploy activities on the territory of the country, the director must be a resident of Cyprus. The Secretary can be both resident and non-resident, and the director can combine this position.
There are no requirements for the organization of meetings of shareholders and squares of reports on meetings, but if the future company plans to become a resident of the country, the meetings must take place in the territory of the Republic.
The authorized capital of the company is not regulated. The minimum capital can be €1, but the standard recognizes the size of € 1-5 thousand.
After registration, the company is obliged to submit such documents annually:
- Financial report (invoices, receipts, cheques, contracts, notarized copies of bank statements);
- Tax return;
- Annual report to the company register;
- VAT payers are required to report quarterly and monthly for the VIES report.
The cost of company registration is from $1 417 (included apostilled package of documents). Nominal service in Cyprus – from $597. Annual renewal of registration – from $1 197 (including reporting).
Open your business in the most reliable jurisdiction of the world today with the help of the services of specialists of GBS Agency! Ask for advice right now!