Forming a company in Cyprus
Member State of the European Union since 2004, Cyprus is a destination of choice for the registration of offshore companies in Europe with an intra-community VAT number. The economy of Cyprus is based primarily on financial and banking services as in Luxembourg, but shipping also brings in a proportion of the island’s revenue, which has been an important transit point between Europe and Asia since ancient times.
Like all offshore companies, anonymity is possible in Cyprus through the use of nominee directors and shareholders.
Please visit our dedicated website: en.spolka-cypr.pl to learn more.
What to remember…
Any lawful business may be established in Cyprus with the benefit of a European image, you can operate several business activities within the same entity with an offshore company in Cyprus. Thanks to its favorable tax system, Cyprus is one of the most attractive countries to incorporate an offshore company with a Intra-Community VAT number for imports / exports in Europe.
Corporate income tax in Cyprus is 10% and is among the lowest in Europe…
Bookkeeping is required and can be carried out quarterly or annually.
Bookkeeping is relatively flexible in Cyprus with the ability to deduct the company costs from the taxable income.
The standard rate of VAT is only 15% and applies only to services provided in Cyprus
VAT and VIES in Cyprus:
As in other European countries, Cypriot companies with a VAT number must submit monthly reports to the European VIES for all purchase or sales operations within the EU.
The formation of an offshore company requires a number of essential elements listed below. These are always included when setting up a company to guarantee adequate operations.
Type of company
The usual type of company in Cyprus is the LTD (Limited Liability Company) based on the British model and is a limited liability company with capital.
The company must have a registered office in Cyprus, which will appear on all mail and the company headed note paper. This allows you to receive mail at the address indicated. There is also an optional virtual office service available complete with telephone number and personalized standard.
The minimum capital is 1 EUR In Cyprus, i.e. there is no minimum capital.
A multi-currency company bank account will be opened with Internet access and a Visa or MasterCard ATM card.
The Director may be of any nationality, however, a Nominee Director service offering additional privacy is the right approach for any company formation.
The Nominee Shareholder service is also a stock solution for offshore companies enabling privacy and anonymity guaranteed.
The easiest way to have your company set up in 24 hours is to choose a Ready-made company from a list of names of existing companies incorporated in advance to minimize delays. A period of 5-7 days plus postage is needed to set up a custom company.
Companies in Cyprus can serve as Holdings and may hold movable or immovable assets.
The company has to be renewed each year, which involves paying a stamp duty, renewing the domicile of the corporate headquarters and the reappointment of the Nominee Director and Shareholder.
Conditions for forming a company
The final condition is that the business activity is legal both in Cyprus and in the country in which the business is conducted. Forming an offshore company should not and cannot be used to legitimize an illegal activity.
The Cypriot authorities do not authorize financial activities, banking, betting, online gambling, and insurance, without an existing license.