Here is your first Forum » Company formation in Cyprus

Cyprus is considered an ideal location for starting a business for many reasons. Geographical location is one; This magnificent island is conveniently located at the crossroads of Europe, Africa and Asia. In addition, its proximity to the wealthiest countries in the Middle East gives Cyprus a serious advantage and contributes to a accommodating environment for starting a business. The widespread use of English in all walks of life attracts business people from all over the world. About 80% of the population is fluent in English.

In terms of legislation, Cyprus investment policy changed significantly in 2000 when the minimum level of foreign investment in Cypriot companies for EU citizens was abolished (in 2004 this restriction was also lifted for non-EU citizens). It is worth noting that the government of Cyprus allows 100% foreign ownership in local companies for third country investors. In terms of taxes, Cyprus is an attractive economy: the corporate tax rate is one of the lowest in Europe at 12.5%. In addition, Cyprus has signed double tax treaties with more than 40 countries to avoid double taxation. Cyprus is an attractive offshore zone due to the very friendly relations between investors and tax authorities. All these factors create a welcoming business environment on the island.

Company formation is a very popular service in Cyprus, not least because of the simplicity of the bureaucratic procedures and ease of opening a bank account. Statistics show that in 2016 more than 200,000 new companies were registered in the country. As a location for a holding company, Cyprus also has many advantages – but first you need to understand what holding companies are and what purposes they can be used for. In short, a holding company is a company that owns enough stock in another company to control its management and policies. Holding companies are used by the owners of real estate, brands and other assets. Forming a holding company is quick and easy; Your presence is not required and the procedure can be completed by email or by post. A holding company also allows nominees. VAT applicable to Cyprus resident holding companies is only 19% and there is 0% tax on incoming and outgoing dividends.

A Cyprus resident holding company can distribute profits to non-resident shareholders entirely tax-free, while corporate income tax on intellectual property income is only 2%. Welcome to Paradise!

Incorporating a company in Cyprus usually takes around 15-20 days. First you need to get your company name approved by the Registrar of Companies who will ensure it is not already in use; this takes 3-5 business days. Then you can register your company. The entire registration process takes about 5-8 business days. The following documents are required: a copy of your passport, a confirmation of personal details, photos, a document showing the place of residence of each shareholder and a certificate of registered office. Directors are required to provide certain information related to their professions. Remember that according to Cyprus law, at least one director and one company secretary should be appointed.

It is possible to open a bank account in Cyprus whether you are a Cyprus resident or not and this can be done through an overseas branch of a Cypriot bank. In order to proceed, you will need to provide the following documents, either original or apostilled: passport, proof of residential address (such as a utility bill), and a bank reference. The main benefit is that opening a bank account is quick and easy. The account opening costs are very low if we compare Cyprus with other EU countries. Also, any natural or legal person can open a bank account in Cyprus. This gives you a Visa card that is valid worldwide, internet banking, security, anonymity and many other advantages. In addition, there are no minimum deposit requirements and bank fees for money transfers are low. Interest in registering companies in Cyprus continues to grow. More and more foreign companies and investors are discovering the advantages of the business environment of this beautiful country. Don't miss your opportunity.