CYPRUS COMPANY FORMATION SERVICE BY PAGECORP GROUP
PageCorp group can assist you with the formation of a Cyprus company for all business activities. In addition, for immediate use, shelf companies are available at Pagecorp Group. The list of already registered companies (shelf companies) is available upon request. Such types of companies have not conducted any business and have no liabilities. As these companies have not traded, they can be sold in their entirety as an alternative to incorporating a company, which procedurally, takes a longer period of time. Shelf companies can be delivered to a client within 24 hours.
ADVANTAGES OF A CYPRUS COMPANY FORMATION
The accession of Cyprus to the EU resulted in the reformation of its tax system and its legislation in order to become EU and OECD compatible. As such, Cyprus reaffirmed that it is not a tax heaven, but rather a tax incentive country. Cyprus’ s corporate tax rate is one of the lowest in the EU and the tax regime secures many exemptions.
Some of the main features of the Cyprus tax system include:
- Dividend participation exemption
- Exemption on disposal of securities (e.g. shares, bonds, debentures)
- No withholding taxes
- No succession taxes
- No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
- Attractive IP regime
- Tonnage tax for shipping companies
The latest 2015 amendments to the Cyprus Companies Law, the introduction of relevant legislation concerning funds and fund management, as well as tax related laws made Cyprus one of the most progressive international business, financial and commercial centres in Europe. The aforementioned tax amendments are part of a governmental effort to make Cyprus more attractive for foreign investors.
TYPES OF CYPRUS COMPANIES
The following legal entities are available in Cyprus:
Private Limited Company
The minimum number of members is one and the maximum is limited to fifty. And there can be no invitation to the public to subscribe for any shares or debentures. This is the most popular type of companies in the business world and the liability of every member is limited to the amount of their subscribed shares. The maximum number of members is 50.
Public Limited Company
Public companies need seven or more founding members and they can invite the public to subscribe for their shares or debentures.
Company Limited by Guarantee
The liability of each member is limited to the amount agreed on the Memorandum of Association to be contributed in the event the company goes into liquidation. These companies are generally incorporated as non-profit making organisations under section 20 of Cap 113.
Branches of Foreign Legal Entities
Any company incorporated outside of Cyprus may establish a legal presence in Cyprus through the legal form of a branch in Cyprus (also referred to us overseas companies).
Societa Europea (SE)
A SE can now transfer its office from another Member State to Cyprus (and vice versa) without dissolving the company in the other Member State. This can be achieved by a merged, the creation of a holding company, a subsidiary or a conversion from a limited liability company.
Re-Domiciliation of Foreign Companies to Cyprus
It is possible for foreign companies to be re-domiciled in Cyprus. Please note that in order to proceed with an application for re-domiciliation the foreign company must be registered in a country which allows re-domiciliation and its Memorandum and Articles of Association permit it to do so.
REQUIRED DOCUMENTS FOR CYPRUS COMPANY FORMATION
Apart from the necessary information relating to the Company, its directors and secretary as well as relevant forms to be submitted to the registrar of companies, we will also need to complete KYC (Know Your Client) documentation in accordance with our legal and regulatory obligations.
CYPRUS COMPANY CREATION PROCESS (STEPS)
During the incorporation of a new company, an application must first be made to the registrar of companies in order to obtain approval for the required name of the company. If there are no issues (i.e. similarity with another name) then the relevant approval will be granted and the necessary documentation for the incorporation can be submitted to the registrar of companies.
COST AND PRICING OF CYPRUS COMPANY FORMATION
Government fees relating to the registration of a Cyprus Company amount to 680 EUR. Please contact us to provide you with a comprehensive quote for the incorporation of a Cyprus Company.
HOW LONG DOES IT TAKE TO START A COMPANY IN CYPRUS
A company can be incorporated within 5-7 business days. Of course, as mentioned above, shelf companies (already registered) are available for immediate use.
KEY FACTS/ ADVANTAGES OF CYPRUS
Cyprus is situated at the crossroads of Europe, Africa and Asia. The excellent infrastructure, the strategic geographic location, the highly skilled human capital, the strong pro-business attitude and the comprehensive tax treaty network with numerous countries across the globe, have established Cyprus as the ideal reputable International Financial Centre.
Cyprus’ legal system, based on English Common Law principles, is widely recognised as a business-friendly and effective system that ensures transparency and reliability in business practices. Offering foreign businesses, a familiar and reliable framework within which to operate, Cyprus’ legal system is also fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws and regulations and EU AML directives.
Moreover, Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations. Providing access to an extensive network of more than 60 Double Tax Treaties, and maintaining a corporate tax rate of 12.5%, one of the lowest in the EU, Cyprus offers international investors and domestic businesses confidence to invest, grow and prosper.
Significant exemptions are also in place for non-domiciled individuals and non-resident persons who take up residence in Cyprus:
- No tax on dividends and interest for non-domiciled individuals;
- 50% exemption on income from employment in Cyprus of a person who was not previously resident in Cyprus. The exemption applies for ten years, provided that the income from employment in Cyprus exceeds €100,000 per annum.
SUMMARY OF CYPRUS COMPANY FORMATION SERVICE
Cyprus’ competitive advantages are significantly enriched by a robust and transparent legal and regulatory framework and an attractive tax regime, which offers a wide range of incentives and advantages both for legal and natural persons.
Overall, a Cyprus company based on English Common Law principles, is widely recognised as a business-friendly and effective vehicle that ensures transparency and reliability in business practices, offering foreign businesses a familiar and reliable framework within which to operate.
Cyprus’ legal system is also fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws and regulations and EU AML directives.