REGISTRATION OF COMPANY ON CYPRUS
|The Republic of Cyprus is the third largest Mediterranean island. Its population is approximately 800 thousand people.
Cyprus has various poetic designations: “country with big heart”, “island of love and beauty”, “paradise”, etc. In fact, Cyprus is extremely diverse and therefore attracts people with opposite tastes and controversial views.
The main part of the inhabitants of Cyprus is represented by Greek Cypriots (their number is about 78% of the total population). About 18% are Arabs. Interestingly, about 94% of Cypriots are educated people. Therefore, the cultural life of the republic is rich and diversified. And, after all, how could this place where the Greek goddess Aphrodite appeared on the coast from sea foam be different!
Myths and legends are interwoven with reality in Cyprus, making the imagination work more lively than usually. In addition, the island has an excellent climate, which contributes to the development of tourism in the resort sphere. Steady weather, warm winds, and predominantly sunny days are the main characteristics of the climate of Cyprus. Also ski resorts thrive there in the winter months.
Cyprus is also characterized by the contrast of the change of views, namely: contemporary hotel complexes are adjacent to pristine nature.
But for modern businessmen, Cyprus is not only place of resort. Many entrepreneurs tend to register offshore company in Cyprus. It should be noted that nowadays Cyprus is not offshore zone in its pure form. The reason in favour of this is the fact that the companies in Cyprus shall necessarily undergo the state registration procedure, submit financial statements and hold annual shareholders’ meetings.
Nevertheless, there are many advantages of offshore registration in Cyprus:
Forms of doing business in Cyprus
Offshore company in Cyprus can only be registered as limited liability company. The above form is convenient for investors and owners of shares of other companies.
The legislative framework.
The activities of offshore company in Cyprus, including the establishment of the company, its functioning and liquidation, are regulated by the Law “On Companies”. The basis of the law was British legislation, to which amendments and additions were adopted.
In accordance with the amendments in 2003, the distinction between local undertakings and offshore companies in Cyprus has been erased in terms of taxation principles. The status of the company is important, namely the fact whether the company is resident or non-resident of Cyprus. At the same time, tax resident is company which management is present in Cyprus (in fact, it is enough that directors are tax residents or citizens of Cyprus). Resident is natural person who has been within the territory of jurisdiction for more than 183 days during the year.
Organizational requirements for offshore company in Cyprus:
Limitation regarding doing business concerns banking, insurance activities, as well as providing financial services without obtaining special permit.
MANAGEMENT OF THE COMPANY IN CYPRUS
In accordance with the norms of the legal system of Cyprus, the control over the activities of the enterprise is carried out by means of voting at the shareholders’ meeting. At the same time, entitling documents retain the right for daily monitoring the board of directors.
In order to secure themselves from illegal actions of the director, the shareholders of the company are entitled to impose restrictions on his authority.
In order to retain the status of offshore company in Cyprus, the enterprise shall conduct business activities, and the shareholders’ meetings should take place outside the jurisdiction.
For resident company, it is important that all decisions are made within the territory of Cyprus.
Peculiarities of the company in Cyprus:
Information about beneficial owner and shareholders is public and stored in the central bank of the Republic of Cyprus.
If the identification of the owner of the company can lead to any negative consequences, it is necessary to preserve the anonymity of the data. This can be achieved by applying mechanism for the use of bearer shares or trust declaration.
TAXES IN CYPRUS
The Cyprus company pays the following types of taxes:
– income tax (12.5%, the rate was set in 2013);
– for license fee (2.5%).
The income from dividends and transactions with securities are not subject to taxation.
Offshore in Cyprus shall annually submit:
The first three types of reporting are submitted to the Tax Department of Cyprus, and the report in Greek – to the Registration Chamber.
Even in the absence of dynamic activities of the company and lack of accrued taxes, offshore company in Cyprus shall submit reporting certified by the auditor.
The means of preservation of the capital and increasing the income of the Cyprus company:
If registration of offshore company in Cyprus is Your top priority, we are ready to put it into effect within the shortest possible time. Registering company in Cyprus means starting legitimate and profitable business activity of international level. Registration of companies, including offshore companies, in different parts of the world is one of the main vectors of our work. It’s cost-efficient to buy company in Cyprus!
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