Cyprus - Limited/Other jurisdictions

Cyprus is an independent republic located on the island of the same name in the Mediterranean Sea, between the continents of Europe, Asia and Africa. The country is known for a well-developed infrastructure, a relatively high standard of living and an educated population. Cyprus is a significant jurisdiction for tax planning and one of the most famous countries in Russia for the registration of non-resident companies. The basis for this is the prisoner between the governments of the USSR and Cyprus   back in 1982   agreement on avoidance of double taxation, which was later extended by the governments of Russia and Cyprus.

The tax rate in Cyprus is 10%, which is one of the lowest indicators in the EU. Certain types of income, for example, dividends, as well as income from the sale of securities, are fully exempt from taxes. 
  • Basic information about jurisdiction

    Area – 9.250 sq. кm
    Population – 790.000
    Government – republic
    Capital – Nicosia
    Official language – greek, turkish
    Official currency – Euro (EUR)
    Time zone – GMT+2
  • Company type

    Private Limited Company (Ltd.)
  • Directors of the company

    Amount: at least one
    Status: natural or legal persons
    Residents: residents of any country are possible
    Information about directors: only in the Register of Enterprises of Cyprus
    Nominee directors: allowed
  • Shareholders of the company

    Number: at least one
    Status: natural or legal persons
    Residents: residents of any country
    Information about shareholders: only in the Register of Enterprises of Cyprus
    Nominee shareholders: allowed
  • Secretary Company

    Quantity: at least one
    Status: natural or legal persons
    Residents: residents of any country
    Information about the secretary: only in the Register of Enterprises of Cyprus
    Nominee Secretary: allowed
  • Authorized capital of the company

    Standard declared capital – 2.000 EUR.
  • Company name

    It should be reflected in Greek and English and end with the words '' Limited '' or the abbreviations '' Ltd. ''. Each name is checked and accepted by the register of enterprises on an individual basis. Registration of names containing the words "Bank", "Insurance", "Trust", "Finance", "Deposit", "Savings", "Security", "Royal" ', "Corporation", etc., is allowed only after obtaining the appropriate licenses. The company will not be registered under the name containing the names of cities and countries. Names that indicate similar activities are also limited (for example, ABC TRANSPORT / ABC LOGISTICS).
  • Information about the real owner of the company

    Information about the real owner of the company is stored only with the registered agent and is confidential.
  • Annual Return

    An annual return is submitted annually.
  • Financial Statement

    An audited financial statement is submitted annually.
  • Taxation

    The standard tax rate is 10%. Certain types of income are exempt from taxation.
  • Double tax treaties

    Treaties are concluded with more than 30 states.
  • The term of registration of a new company

    12-15 business days; The term of receipt of the full package of documents is 6-7 weeks.
  • Acceptance of third-party companies for service FIVECONSULT

    Only in consultation with the previous servicing agent in Cyprus.
  • A set of constituent documents of the company

    1) registration certificate (Certificate of Incorporation) - in Greek, as well as its translation into English;
    2) charter / memorandum of association (Memorandum of Association and Articles of Association) signed by the first founders of the company (Subscribers) - in Greek, as well as its translation into English;
    3) certificate (Certificate) confirming the legal address of the company issued by the Register of Enterprises;
    4) certificate (Certificate), confirming the appointment of directors and secretary of the company, issued by the Register of Enterprises;
    5) Certificate, confirming giving the list of shareholders of the company, issued by the Register of Enterprises;
    6) the general power of attorney (General Power of Attorney), signed by nominee directors - is ordered for a specific person after the company's purchase; nominee service (agreement for management of a company by nominee officers and indemnification ofnominees);
    8) Share certificates issued by nominee directors;
    9) company stamp.
  • "Ready-made" companies

    Buying "ready-made" companies is possible. 
  • FIVECONSULT comment:
    Cyprus is one of the best jurisdictions for the registration of holding companies - after all, income received in the form of dividends is not taxed in Cyprus in most cases. The acquisition and sale of capital shares, as well as other securities, is also in most cases not subject to taxation in Cyprus.
    It is important to note that all companies registered in Cyprus - in accordance with existing EU legislation - must comply with strict financial reporting standards. The financial reports of Cyprus companies are certified by a licensed auditor, to whom the owner of the company submits the company's complete economic documentation for the fiscal year.

    What makes Cyprus offshore attractive

    By registering an offshore company in Cyprus, you can easily and quickly reach the attractiveness of your company for business partners and investors.  
    First, Cyprus does not appear in the black list of offshore zones. Consequently, reputable organizations will not bypass your company, but on the contrary - show the desired interest in it.  
    Secondly, this is the state, which today is one of the largest places of business focus; For the Russian resident, opening an offshore in Cyprus is the most breakthrough to Europe, allowing a registered company to enter into transactions with European organizations without any restrictions.  
    Features of the offshore in Cyprus
    Perhaps the main feature of the Cyprus offshore is that it does not count as such offshore. Choosing Cyprus offshore, you accept the conditions of the state registration procedure, the presentation of financial statements to the tax authorities and the annual holding of shareholders' meetings. Moreover, in contrast to zero-tax offshore zones, here the tax rate on profits is 10% (and for companies registered by Cyprus residents it is 15%). But this is just an unobtrusive "fly in the ointment" in a large barrel of honey.  
    Non-residents of Cyprus living and making a profit outside the republic pay taxes only in their own country and citizens of the Russian Federation are no exception (in accordance with double tax treaty between Russia and Cyprus in 1998). And the inconvenient, at first glance, need for holding shareholders meetings eliminates the possibility of doing this in the distance.
    Other advantages of registering an offshore company in Cyprus  
    Offshore Cyprus, without exaggeration, is ideal for any activity permitted by local law. The only exceptions are trust, banking, insurance and reinsurance activities that require compulsory licensing. In addition, registering a company in this offshore zone is a reasonable solution for entrepreneurs planning to bring their business to a new level: in 2004 Cyprus entered the EU, having obtained the right to enjoy the same benefits and opportunities as other EU member states.