Cyprus companies are referred as offshore companies often. But in reality they are not offshore but onshore companies, however the taxation is low and depends on type of operations which company is handling.
In general the tax rate is 10% – Profit Tax. If company sells services/goods from its Cyprus office it must pay VAT 0-15% (which is ine among the lowest VAT rate in Europe).
If company has a director who is not the resident of Cyprus or/and doesn’t handle any activity on Cyprus it doesn’t pay Profit Tax.
Company: resident company. The name of the company should have “Limited”
Restrictions on activity: banking, insurance, reinsurance and trust activities requre special licenses.
Registered capital: there are no requirements regarding the min amount. Should be in Euro.
Shareholders: Person/entity may be a shareholder. There are no requirements regarding the residency.
Directors: Person/entity may be a director. There are no requirements regarding the residency.
General meeting: is mandatory once a year. There are no requirements.
Accounting: is mandatory.
Audit: is required
Registers: there are registers of directors, secretaries and shareholders. Keeping of such registers is mandatory. Registers are open.
Taxation: 10% Profit Tax. VAT is 15%. 20% tax for the profit from the a) managing of real estate in Cyprus or b) from shares of the company which has real estate in Cyprus.
Double Taxation Avoidance Agreements: 45 countries including Austria, Belgium, Bulgaria, Canada, Chech Republic, China, Hungary, Germany, Greece, Denmark, Egypt, Kuwait, Ireland, Italy, Malta, Norway, Poland, Romania, Syria, UK, USA, CIS (except Georgia)
Exchange Control and Regulation: No
Benefits of Cyprus companies:
- Cyprus is the member of EU since 2004;
- the lowest profit tax rate – 10% among the others European countries;
- dividends are not taxable;
- wide network of Double Taxation Avoidance Agreements
- was placed on the OECD’s ‘white list’ in July, 2009.
- high level of confidentiality. Register of directors and shareholders are closed ones and can be disclosed under the court ruling only.
- Stable political situation.
- Fast and simple incorporation of the company
- No requirements regarding auditing and accounting
You can check prices for Cyprus companies here
Walton Consultants DMCC