Did you know that you can take your business to Europe? Today we bring you information on how to create or bring your business to one of the European countries with lower taxes. Located on an island in the east of the Mediterranean this is cyprus.
Why is Cyprus a Great Place to Start a Business?
Launching a new company in Cyprus has some undeniable advantages.The corporate tax rate is 12.5%, one of the weakest in the EU. Besides, there is no tax on dividends and more than 65 favorable agreements are in place to prevent double taxation.
The country can play an important factor in your plan if you are looking to become an EU resident and tax resident. Being an EU jurisdiction, Cyprus is not blacklisted. If you set up a company in a blacklisted country, this can complicate your tax situation considerably.
Since many jurisdictions are planning to implement global minimum taxes, we predict that Cyprus will become increasingly popular as the CIT rate is on the borderline with the regulation
There are many tax incentives, such as the following:
0% tax on any revenues from trading in securities such as shares etc
0% tax for all profits from the sale of real estate abroad
0% tax on dividends paid out to the shareholders, as frequently as you like
0% tax on any dividends paid to it by any other company in which it holds shares
0% stamp duty on many occasions
0% tax on profits of permanent establishments abroad, such as hotels, casinos, restaurants, factories, etc
0% tax on any income from selling its shares
2.5% tax on IP rights.
What Are the Costs of Company Formation in Cyprus?
The registration of new limited liability companies comes at a price in Cyprus. This is the fee that a registered company will have to pay:
Registration of a new company: €1,300
Opening of a bank account: €700
Nominee Director fees: €400
Nominee Secretary fees: €400
Registered office fees: €400
Nominee Shareholder fees: €400.
What Are the Requirements to Set Up a Company in Cyprus?
You may wish to establish a Cyprus limited company or you may want to establish a representative office of a parent company in Cyprus. There are certain steps for the formation of a company in Cyprus, and we will describe them below.
Verify and reserve the name through the Department of Labor, which will take 2-3 business days.
Complete the forms for the creation of this limited liability company, along with the registered office address, and file them with the Registrar of Companies.
Submit the first scanned page of your ID card or passport, together with the occupation and full addresses of the shareholders, director and secretary, as well as corporate documents stating the purposes and activities of the company and the amount of the subscribed share capital
Corporate law provides that a limited liability company must have between one and 50 partners, but there is no minimum share capital for a company limited by shares.
The minimum share capital for a limited liability company is 25,629 euros.
You can appoint a nominee shareholder, nominee secretary and nominee director by signing an agreement with them stating precisely that the nominee director, nominee secretary and nominee shareholder have no financial interest in the limited liability company and are willing to provide their services solely on the basis of this agreement.
After incorporation, the bank account must be opened.
The Bank of Cyprus is not the quickest, and it can take about four months to open a corporate bank account, so consider alternatives such as Hellenic Bank, Astrobank and Alpha Bank.
In the interim, local lawyers licensed by the Cyprus Bar Association may ask you for a social security number and a certificate of self-employment.
When all this is done, arrange an appointment at the Civil Registry and Migration Department to request the yellow slip.
So, if you are interested in finding out more about Business and outsourcing and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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