Companies in Cyprus are taxed on their net profits i.e. sales less expenses at a rate of 12.5%
Individuals being tax residents in Cyprus are taxed as follows:
|Income for the underlying tax year||Tax Rate|
|From 0 to 19.500|
|From 19.501 to 28. 000|
|From 28.001 to 36.300|
|From 36.301 to 60.000|
It needs to be noted that 3-5 days are needed for the name application approval.
Upon that the Registrar of Companies will need another 5-6 working days to incorporate the Cyprus Company.
No it is not necessary for the beneficial shareholder to visit Cyprus at any stage of the Company incorporation unless they want to do so themselves.
Nominee Directors can be either legal or natural persons who are used when clients want to keep their anonymity since all Company documents are open to the public via the Registrar of Companies.
Same with nominee Directors, nominee Shareholders can be either legal or natural persons who are used when clients want to keep their anonymity since all Company documents are open to the public via the Registrar of Companies.
As per law requirement a Cyprus Company needs to have its Registered Address in Cyprus. Our firm shall provide you with the above.
Yes. There are certain activities like banking and financial institutions. Furthermore, hotels and restaurants who intent to operate in the Republic of Cyprus will also require special licenses to be obtained.
A Cyprus Company is subject to an Annual Levy of Euro 350 payable to the Registrar of Companies, and is obliged to submit on a yearly basis Audited Financial Statements to the Income Tax Office. Moreover, an Annual Return with the audited financial statements must be submitted with the Registrar of Companies.
There is no fixed procedure when opening a bank account. Each banking institution has its own procedures and requirements regarding the know-your-client and documentation requested.
It will take between 2-3 weeks to open e a bank account in Cyprus as long as all documents requested are in place as per bank requirements.
The Company should upon incorporation:
Yes. The Company will benefit from the low tax rate of 12.5% and at the same time via the numerous Double Tax Treaties and unilateral Tax credits allowing it for a successful tax plan implementation.
The Company will not be subject to Tax in the Republic of Cyprus and as a natural course of effect it will not be able to benefit from the numerous tax treaties Cyprus has entered with various countries.
The content of the above article is to provide a general background on frequently asked questions on Incorporating a Cyprus Company. Specialized, tailor made advice should be requested based on each scenario and specific needs.