Cyprus Companies
It is essential to entrust the administrative procedures of Cyprus company formation to a business advisory firm specializing in company law and Cyprus companies formation. Cyprus Company Formation can be a complex process for foreign shareholders and directors if not appropriately guided. Therefore, you may need a team of business advisors expertized in company formation in Cyprus.
What are the Benefits of Registering an International Business Company in North Cyprus?
- International Business Companies are subject to a 1% income tax rate and an annual 5000 Euros license fee.
- International business companies are free to transfer money and profits abroad.
- There is no stoppage tax on the dividend distribution of international business companies.
- Income and value-added tax are not paid on royalties, interest and any other fees to be made abroad by international business companies.
- Shareholders of international business companies do not pay any tax on the transfer of shares.
- Profits obtained by international business companies from the sale of securities are not subject to tax.
Types of Companies in North Cyprus that Provide Tax Advantages
The following businesses can be established in Northern Cyprus through the company formation steps in North Cyprus are given below.
- Free Port Companies with 0% income tax rate
- International Business Companies with a 1% income tax rate
How to Register an International Business Company in the North Cyprus?
Register an international business company in North Cyprus by
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- Choosing a company name with several alternatives is the first step of the North Cyprus company registration process.
- Submitting them to the North Cyprus Registrar of Companies for approval.
- The Articles of Association and Bylaws are then drawn up, setting out the company’s aims, rules, and regulations.
- Following the documents are required to complete the company registration in North Cyprus:
- Company incorporation forms
- Memorandum and Articles of Association
- Notarized Passport copy of the shareholders
- Notarized Criminal record of the shareholders
- Proof of residence or current utility bill proving the address of the shareholders.
- 20.000€ must be deposited in any North Cyprus Banks as share capital for registering an international business company in Cyprus.
What are the Governmental Costs to Establish an International Business Company in North Cyprus?
The application fee, stamp duty, and capital surcharge are 1000 Euros.
What are the Benefits of Registering a Freeport Company in North Cyprus?
Free Port Companies do not pay any tax as long as they sell or provide services abroad. Free Port companies are exempt from VAT and stoppage tax and can open an account at any of the local banks. Transferring profits abroad is free and not taxable in Northern Cyprus.
How to Register a Freeport Company in the North Cyprus?
Register a Freeport company in North Cyprus by
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- Choosing a company name with several alternatives as the first step of the North Cyprus company registration process.
- Submitting them to the North Cyprus Registrar of Companies for approval.
- The Articles of Association and Bylaws are then drawn up, setting out the company’s aims, rules, and regulations.
- Following the documents are required to complete the company registration in Cyprus:
- Company incorporation forms
- Memorandum and Articles of Association
- Noterized Passport copy of the shareholders
- Noterized Criminal record of the shareholders
- Proof of residence or current utility bill proving an address of the shareholders
- 25.000€ must be deposited in any North Cyprus Banks as share capital for registering a free port company in North Cyprus.
What are the Governmental Costs to Establish a Freeport Company in North Cyprus?
The application fee is 200 USD, stamp duty is 50 USD and the registration fee is 2500 USD.
What Are the Requirements for Opening a Bank Account in North Cyprus?
The director of the company must be present at the bank to sign the bank documents and should provide a passport and utility bill as proof of address and company registration documents when opening the bank account.
In What Currencies Can North Cyprus Banks Open the Accounts?
Banks can open the accounts in EURO, USD, and GBP with IBANs.
Do North Cyprus Banks Have Secure Mobile and Internet?
Mobile and internet banking services are very secure and easy to use.
How to Register a Company in the Cyprus?
The main steps to register a company in Cyprus are as follows;
- Preparation of documents
The filing of certain mandatory documents, such as the Memorandum and Articles of Association of the company
- The choice of the business name
The name of your company must not be used by another company registered in the Cyprus Registrar of Companies or infringe upon the reputation of an international trademark
- Filing the documents at the registry of companies
There are two ways to file your documents with the Cyprus company registration:
- via the electronic system;
- or by filing the documents by mail or hand delivery
- Issuance of the registration certificate:
The Business Registry of company registration in Cyprus proceeds with the registration of the business name, the company’s publication in the official gazette, and the issuance of the company’s certificate of registration. The registration number of the company is then shown on the certificate of incorporation.
Type of Company Which Provide Tax Benefits in Cyprus
Private Company Limited by Shares (LTD) is the most favorable type of company for international tax planning purposes. Cyprus is regarded as one of the best jurisdiction for international holding companies.
How Long Does It Take to Register a Company in Cyprus?
Registering a private limited company in Cyprus is quick and easy. It will take you about 10 working days for the whole period needed for registering a company in Cyprus.
Costs Related to Starting a Business in Cyprus
How much does it cost to register a company in Cyprus? Fee to incorporate a company in Cyprus is 3000 Euros. If requested, the additional service fees to be incurred are for nominee shareholder, director, registered address, company secretarial services, assistance for the opening of a bank account, delivery of the company’s incorporation documents by courier in rapid delivery, accounting, and auditing.
What is the Minimum Share Capital in Cyprus?
There is no minimum share capital requirement in Cyprus, however in practice it is usually 2.000 Euros.
What are the Benefits to Setup a Cyprus Company?
- Cyprus companies are subject to one of the lowest taxation rates in Europe which is 12.5%.
- Use of nominee shareholder and director is allowed with full confidentiality.
- Shareholder and director are not required to be in Cyprus to establish the company.
- Bank account can be opened both in Cyprus and in other countries.
- Director can operate the business at the country of residence without being in Cyprus.
- There is no income and capital gains tax on profits and gains derived from the disposal of securities.
- There is no tax on distribution of dividends, payments of interest and patent rights when used outside Cyprus) to non-tax residents of Cyprus
- European Union and Eurozone connection,
- Its strategic geographical location at the intersection of three regions and this contribution to markets in Europe,
- Low-cost workforce,
- High-quality transport and telecommunications infrastructures, particularly in the port sector
- A highly developed tertiary sector: tourism, international business, financial center, maritime transport, etc.,
- Favorable business atmosphere, robust regulatory framework, and legal system consistent with English common law.
Documents Related to the Cyprus Company Formation Procedure
The procedure for company incorporation in Cyprus requires the filing of certain mandatory documents, such as the Memorandum and Articles of Association of the company. Careful preparation of these documents required for doing business in Cyprus will save you time while recording your enterprise with the Companies Registry Office.
Does the Company Need to Have an Office in Cyprus?
A registered office address is a prerequisite for a corporation established in Cyprus. The establishment documents of the company need to be stored at this registered office in the Republic of Cyprus. However, registered address service in Cyprus can be provided in addition to nominee shareholders, local directors, and company secretaries.
Do You Need Special Permits and Licenses in Cyprus?
Special permits and licenses in Cyprus are required for particular businesses in Cyprus. In launching a business, a number of general business permits and business licensing in Cyprus are issued by the respective domestic authorities in Cyprus, based on the nature of the business to be executed. However, in these Requirements when applying for special licenses and permits in Cyprus; some types of enterprises, such as those working in the financing industry, are subject to more stringent compliance with rules and are obliged to acquire specific licenses prior to conducting business. You might need to calculate specific fees when applying for business permits in Cyprus depending on your particular business.
What Are the Requirements for Opening a Bank Account in Cyprus?
Step by step to have a bank account in Cyprus:
For opening a bank account in Cyprus, you will requisite various documents. A copy of your identity document (passport, national identity card), your company’s registration documents such as the company’s legal statutes), proof of address (energy bill, bank statement), proof of income (income tax return or salary slip), and your company’s business plan will be needed even for the easiest offshore bank account to open. How to open a bank account in Cyprus as non-resident? Some banks may require other documents to finalize the opening of a Cyprus bank account depending on your personal situation. Firms open bank accounts and follow these documents and procedures. Many foreign investors use our services to open a bank account Cyprus.
What Are the Taxes for Companies in Cyprus?
There is a Cyprus corporate tax rate of 12.5%. Other Cyprus taxes cover share capital tax, welfare contributions, stamp tax, transaction tax, and real estate tax. We can assist you in complying with the rules concerning Cyprus tax rates and income tax Cyprus upon request.
Can a Foreigner Register a Company in Cyprus?
The local legislation in Cyprus allows foreigners to launch a firm without limitations. However, you will have to comply with the local legislation regarding authorization (license in particular). How to Start Business in Cyprus for Foreigners? These are the main steps:
- Obtaining a tax number
- Obtaining an intra-community VAT number
- Registering with the Social Insurance Agency
- Registration of a company bank account in Cyprus
- Reservation of a brand name.
What Are the Main Points of Interest for Foreign Investors in Cyprus?
Cyprus offers advantageous opportunities for investors in many areas. What are the main points of interest for foreign investors in Cyprus?
- The existing tax system in the country is good.
- The available labor force has skilled potential and attracts investors.
- Prevailing acts and regulations are favorable for investment.
For detailed information, you can read our article on Starting a Business Overseas: Steps and Processes, which includes information about establishing a company abroad.