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The formation of a company in Cyprus is governed by the Cyprus Companies Law, Cap 113, as amended.

Qualifications for Cyprus Companies

  • Customised name preference
  • Minimum one shareholder, foreign shareholders are accepted
  • At least one share is subscribed with no minimum or maximum paid up share capital
  • Shares at a premium, are available
  • Minimum of one Director appointed
  • Directors can be legal or physical persons
  • Director may act as Secretary [legal or physical person]
  • No limitation as to the nationality of the Secretary [Cyprus resident is recommended]
  • Cyprus registered office is required
  • Company Annual General Meeting should take place in Cyprus
  • The concept of ‘nominee’ Shareholders is not forbidden

Tax treatment of Cyprus Companies

  • Beneficial tax system
  • The Corporate Tax rate is 12.5% (with an effective corporate rate lower for most international transactions through Cyprus)
  • No withholding tax on dividends received from foreign entities
  • No withholding tax on dividends distributed to non-resident shareholders
  • No withholding tax on royalties arising from sources outside Cyprus
  • Profits arising from the disposal of securities are tax exempt
  • Group relief provisions for companies resident in Cyprus
  • Fully compliant with EU and OECD
  • Special tax schemes available for the Shipping Industry, Intellectual Property, Trusts, Investment Funds, Expats
  • An extensive network of Treaties for the avoidance of double taxation

Advantages and benefits of Cyprus Companies

  • Easy setup and establishment of business
  • Fast incorporation of companies
  • Electronic filing of documents
  • Apostille and certification of documents available
  • Tax residence Certificates issuance
  • The nominee shareholder concept is not forbidden under the Cyprus laws
  • Management and control determine the tax treatment of Cyprus companies
  • Possibility to employ local or international staff available
  • Particular scheme for third country nationals obtaining a work permit under a Cyprus company of foreign interests available
  • Banking solutions
  • Redomiciliation of companies in/out of Cyprus is possible

Benefits of Cyprus as a jurisdiction

  • Member of the European Union
  • Privileged geographic location, at the crossroad of three continents
  • Reputable jurisdiction and not a tax haven but one of the lowest tax jurisdictions
  • Legal and Regulatory Framework
  • Common law jurisdiction
  • Fully compliant with EU AML Directives, the Financial Action Task Force on Money Laundering (FATF), and OECD
  • The international business environment for doing business
  • Special schemes for obtaining Cyprus citizenship
  • Non-domicile tax residency status gives tax benefits and incentives

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Disclaimer: This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Highworth (Cyprus) Ltd, its members, employees, and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining from acting, in reliance on the information contained in this publication or for any decision based on it.
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