Cyprus Company Formation

CYPRUS COMPANY FORMATION
BANK ACCOUNTS

Cyprus Company Formation Tax Haven

KGN specializes in Cyprus company registration and opening bank accounts.

Cyprus Company Formation – Overview

Advantages of Cyprus Company Formation

European jurisdiction

Advantageous vehicle for International Tax Planning and use

0% tax on Dividends received (Dividends received by a Cypriot Company, on certain conditions, are free of tax making Cyprus the most competitive jurisdiction for holding companies)

0% withholding tax on Dividend payments (Dividends payable by a Cypriot resident company to its foreign shareholders (whether a company or individual) are not subject to any withholding tax in Cyprus)

Full tax exception on the payment of dividends to its non-resident shareholders and has a real advantage over the other traditional holding jurisdictions

No capital gains tax is paid on the transfer of immovable property owned by a Cypriot Company abroad (outside Cyprus)

12, 5% Taxation for tax resident companies.

Double Tax Treaties (Cyprus has signed a considerable number of Double Taxation Treaties with various countries, to avoid the double taxation of income earned in any of the two contracting states)

A minimum of one director is required for a Cyprus company formation. Director can be of any nationality and need not be resident, but Cypriot advisable for purposes of tax residency corporate directors are permitted

A minimum of one shareholder is required for a Cyprus company formation

Nominee Shareholders and Nominee Directors Allowed

Cyprus Company Formation. Legislation

Principal Corporate Legislation

Companies Law, Cap 113, as amended.

Type of Law

Civil with many English Common Law influences.

Language of Legislation and Corporate Documents

English and Greek.

Cyprus Company

Type of Company for International Trade, Investment & Tax Planning

Cyprus Private Limited Company.

Share Capital

Standard authorised share capital is EUR 1,000. Minimum paid up share capital is EUR 1.

Classes of Share Available

Registered shares, preference shares, redeemable shares and shares with or without voting rights.

Bearer Shares

Not permitted.

Restrictions on Trading

Banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship business provision are not permitted.

Registered Office Required

Each Cypriot company must have a Registered Office in Cyprus.

Secretary

Each Cypriot company must have a Secretary in Cyprus.

Directors

A Cyprus company requires a minimum of one director. Director can be of any nationality and need not be resident, but Cypriot advisable for purposes of tax residency Corporate directors are permitted.

Shareholders

A Cyprus company requires a minimum of one shareholder.

Publicly Accessible Records

Yes.

Nominee Shareholders and Nominee Directors

Allowed.

Location of Meetings of Directors and Shareholders

Anywhere, but Cyprus advisable for purposes of tax residency.

Personal Presence Required

No.

Taxation

The corporate tax rate is 12.5%.

VAT

A Cypriot company trading from Cyprus may be registered for VAT purposes and the VAT prefix will be ‘CY’.

Double Taxation Treaty Access

Azerbaijan, Armenia, Austria, Bulgaria, Belarus, Belgium, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Kyrgyzstan, Malta, Mauritius, Moldova, Norway, Poland, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Thailand, Ukraine, United Kingdom, USA, Uzbekistan.

Requirements to File Accounts

Yes.

Audit Requirements

Yes.

Exchange Control

None.

Time required for Cyprus Company Formation

Two weeks, subject to name approval.

Cyprus Company Registration – Name of a Company

Language of Name

English.

Restricted Words

Words such as “Assurance”, “Bank”, “Building Society”, “Royal”, “Trust Company”, “Trustee Company” etc. will require justification.

Name of a Cyprus Company

The name of each Cyprus company must end with the word “Limited” or “Ltd”.

Cyprus Company Registration Prices

Cyprus Company Formation Package Includes:

Company Name Check

Initial Business Approval

Preparation of Application Documents

Registration of a standard company with a maximum share capital of €1.000 inclusive of legal fees and stamp duties

Transfer of subscribers’ shares

Allotment of new shares appointment of directors

Arranging of the registered office

Filing statutory returns and issue of share certificates

Nominee Director (Cyprus Resident)

Secretarial Services for 1 year

Register of shareholders

Register of directors

Starting at: €2790

Why Choose KGN?

We’ve been helping business owners since 1996

Incorporating your business is our focus

We make a complex process fast and easy

We work closely with Companies Registries to guarantee our service

Fastest offshore companies & accounts – Most competitive pricing worldwide

People Also Ask

How much does it cost to register a company in Cyprus?

Cyprus company registration costs starting at 2790 EUR

How do I register a company in Cyprus?

The formation of the company must be finalised before registering a company. Afterwards, an application must be submitted to the Cyprus registrar.

Is Cyprus Offshore?

Cyprus is not offshore. Cyprus is not a tax haven, so it’s not considered to be an offshore jurisdiction.

How much tax do you pay in Cyprus?

There’s a corporate tax that a company would need to pay in Cyprus. Since it’s not a tax haven, this low and favourable tax is required and must be paid.

Services related Cyprus Company Formation

KGN provides the following services related Cyprus Company Registration:

Cyprus Company Formation

Registered Office Services

Secretarial Services

Nominee Shareholder / Nominee Director

Opening of Bank Accounts

Full Cyprus Company Administration Services

Mailing Address

Virtual Office

Bookkeeping & Audit

VAT Registration

EORI Registration

Trademark Registration

Family Office

Cyprus Company Formation – Set up a company and open a bank account in Cyprus

Cyprus has become a target for individuals and corporations who want to start their businesses in places with low taxation rates. Cyprus is among the many countries with the lowest corporate tax rates across the European Union, with a 12.5% tax rate, attracting many businesses to take an interest in starting a company in Cyprus.

Cyprus Company Registration

There’s an increasing amount of interest in building a company in Cyprus these days thanks to their favourable low tax rate. Additionally, because of this tax rate, Cyprus has become the gateway to the European common market, which is chosen by various non-EU companies and corporations. It also serves as the portal for investment to countries from the West, through to Russia, South America, Middle East, and Asia.

The Advantages of Company Registration in Cyprus

Many companies have arisen in Cyprus for a number of reasons, but mainly because of the tax rates implemented in the country. Additional advantages of having a company in Cyprus include:

1.Companies and entrepreneurs are allowed to legitimately conduct their business and be subjected to a low corporate tax rate.

2.Companies registered in Cyprus have the ability to be incorporated with a full 100% ownership.

3.Companies in Cyprus can also benefit from the network of double taxation treaties where almost 60 countries are signatories, including the UK, the US, China, Canada, Russia, and many more.

How to Register a Company in Cyprus

Registering a company in Cyprus is unexpectedly easy. Although a Cyprus company registration is completely different from a Cyprus company formation, the registration completes the company formation itself.

When registering a company, you have two main options: to start a new company or to use a pre-formed one in Cyprus. Generally, the registration proceeds as follows:

Applying for the Company name

Incorporation

Establishing Bank Accounts

To be able to fully conduct business in Cyprus, a Cyprus company must be registered with the Cyprus Registrar of Companies. Once the necessary procedures for Cyprus company formation are finalised, the Cyprus company registrar search will start. The company shall submit an application to the Cyprus Registrar of Companies to apply for company registration.

How to Register a Company in Cyprus

To be able to fully conduct business in Cyprus, a Cyprus company must be registered with the Cyprus Registrar of Companies. Once the necessary procedures for Cyprus company formation are finalised, the Cyprus company registrar search will start. The company shall submit an application to the Cyprus Registrar of Companies to apply for company registration.

How Much does it Cost to Register a Company in Cyprus?

You might be asking yourself, ‘how much does it cost to open a company in Cyprus?’. Generally, for a new organisation, registering a company in Cyprus starting at 2790 euro.

A Registered Cyprus Company

After a company is fully registered, there’s a need to further register for VAT. What is VAT in Cyprus? It’s a tax in Cyprus that consumers pay and reflects on the cost of a product. In Cyprus, VAT is set at 19%. When all necessary registrations and applications are made, the company will finally gain a Cyprus company registration number. The registration number is proof that the company is legally registered and allowed to run its business. The Cyprus company registration number format usually has nine characters, eight of them being numbers, and the last character is always a letter.

Cyprus – General Information

Location: Middle East, island in the Mediterranean Sea, south of Turkey; note – Cyprus views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East, or both.

Area: total: 9,251 sq km (of which 3,355 sq km are in north Cyprus), land: 9,241 sq km, water: 10 sq km.…

Natural resources: Copper, pyrites, asbestos, gypsum, timber, salt, marble, clay earth pigment.
Population: 1,221,549 (July 2017 est.).

Capital: Nicosia.

Time Zone: UTC+2.

Languages: Greek, English

Government type: Presidential democracy.

Legal system: Mixed legal system of English common law and civil law with European law supremacy.

International organization participation: Australia Group, C, CD, CE, EBRD, ECB, EIB, EMU, EU, FAO, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NAM, NSG, OAS (observer), OIF, OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO.

Economy: Tourism, finance, shipping, and real estate have traditionally been the most important services. Cyprus has been a member of the EU since May 2004 and adopted the euro as its national currency in January 2008. In October 2013, a US-Israeli consortium completed preliminary appraisals of hydrocarbon deposits in Cyprus’ exclusive economic zone (EEZ), which estimated gross mean reserves of about 130 billion cubic meters. Though exploration continues in Cyprus’ EEZ, no additional commercially exploitable reserves have been identified. Developing offshore hydrocarbon resources remains a critical component of the government’s economic recovery efforts, but development has been delayed as a result of regional developments and disagreements about exploitation methods.

Currency: Euro.