Company Formation in Cyprus
There are certain countries that are not typical offshore zones. In the meantime, they offer quite acceptable conditions to do business by our businessmen. Cyprus is a good example of the country that is loyal enough to our nationals.
Company Formation in Cyprus is Advantageous Due To Various Factors. There Are Most Significant Arguments to Highlight:
- low income tax,
- progressive banking system,
- advanced system of free enterprise.
The Cypriot legislation gives the opportunity in the legal field to carry out any kind of activity, and VAT is quite feasible to obtain. To deliver banking, insurance or trust opening services, you only need a license that can be purchased remotely.
Company Formation in Cyprus – The Procedure
The very first stage is the choice of the appropriate and suitable form of the company. All the required documentation for the company may be received the following day after payment. The personnel of the Private Financial Services create the corporate charter and execute papers provided by the client: Certificate of registration, Memorandum of Understanding, stamp, apostille, decrees on perosnnel appointment, etc. The client should only need to pay 50% of the service cost as the advance payment. The registration process itself does not require the client’s personal appearance. All the documentation shall be delivered by mail to the country of actual stay of the latter.
Presence of a Competent Secretary With the Office
In line with the law, the company registration in Cyprus assumes the authorized capital in the amount of 1 thousand Euro with the lowest nominal price of share of 1 Euro. The least number of company members is one person who can be a physical person or legal entity to act as the director or major shareholder.
It is important to understand that the offshore zone in Cyprus does not fully match the definition of offshore. In this particular case, the required procedures include those to keep accounting reports, to submit auditor’s opinions to appropriate authorities and state bodies, to prepare and submit financial reports. In addition, every year Information Return should be declared. Meanwhile, offshore companies in this country give the entrepreneur the opportunity to earn income taxed at zero interest rate. Exclusively all information related to activities of companies and their nominee representatives are strictly confidential.
If you decide to buy an offshore in Cyprus, you will have to ensure permanent stay of your representative in the country. Only a resident of the island may act like above. The Private Financial Services is willinng to provide at your disposal a competent secretary with the office arranged for activity.
Today, most national businessmen today seek to open their offices in Cyprus. This is due to quite stable economics of the country, very flexible local regulations concerning business and, naturally, great prestige.
A company registered in Cyprus offers the following advantages to a businessman:
- complete secrecy;
- reliable but flexible laws;
- highly stable banking system;
- no double taxation;
- low tax rate on profit that equals 12.5%;
- nominal service;
- trust management.