How to set up a company in Cyprus, if you are non-EU citizen?

Как открыть компанию на Кипре?
7 October 2020 Antonio Martinelli

Cyprus used to be an offshore zone, as it has made a choice in favor of the EU. However, the island is still interesting for many businessmen. As before, new companies are registered here every month, and the number of foreign companies continues to grow.

What's the secret?

The secret is, first of all, in the tax benefits.

What are the benefits?

Despite recent events and pressure from Russia aimed at changing the conditions for Russian business on the island, Cyprus managed to come to an agreement with its big partner and remain a "tax haven" for Russian entrepreneurs.

Benefits have been preserved for Russian insurance companies and funds, as well as for public companies whose shares are traded on the stock exchange. In addition, there remained zero tax on royalties, on Eurobonds interest payments, on government and corporate bonds.

Benefits when registering a company in Cyprus

  • Cyprus is a member of the EU, therefore companies registered here can operate throughout the European Union
  • the organizational component of a business is not as expensive as in Ireland, for example
  • opening a bank account at a European bank
  • your company will get all the tax benefits but will have no “offshore label”.

Where to begin?

  • Fortune favours the bold. First, come up with the name of the company
  • One or two names for your future company can be submitted to the Companies House Cyprus, and after 7-10 days you can Be patient and wait for the company to be registered, the process can take up to 10 business days
  • By the way, Companies House already has an approved list of company names that you can use, thereby you can reduce the waiting period for registering your company.

How many employees are required when registering a new company in Cyprus?

This is a good question, without solving which it will not be possible to register a new company in Cyprus. The minimum staffing of a newly created company is 3 people. Among them must be:

  • Shareholder
  • Director
  • Secretary

What documents are required to register a company in Cyprus?

Each of them must provide the following documents:

  • copy of passport
  • confirmation of the address of registration (residence)
  • letter of recommendation from the bank.

If the founder of a new company is a legal entity, then a full package of constituent documents are required, as well as all of the above documents for the first persons of this company.

It is important to know that all documents must be translated into English and certified (apostilled).

What is a LTD company in Cyprus?

In fact, this abbreviation applies to international companies in offshore zones.

It is possible to register such a company in Cyprus, but in order to enjoy the general benefits of local companies and to avoid additional tax burden, it is necessary to become a resident (local) company in Cyprus.

Audit and taxes in Cyprus

When registering a company, it is important to immediately find an audit company or a competent accountant.

Because you will have to annually report:

  • tax return
  • financial report in the national language
  • an annual report on company's management.
Local companies pay taxes on profits earned inside and outside Cyprus.

As for non-resident companies registered in other jurisdictions, but operating on the island, they pay taxes on those commercial activities that are carried out only in Cyprus.

It is important to note that companies that do not have a "resident" status cannot use the benefits of international agreements that give the ability to pay taxes only in the country of residence.

In addition, the Cypriot banks, biased and frightened by the global trend of combating money laundering, do not favor non-resident companies, and quite often refuse them to open a bank account.

How to become a tax resident of Cyprus and move?

All local Cypriot companies are considered resident companies.

But to obtain a Tax Resident Certificate for the head of a company, there is no other way but to relocate here.

How to move to Cyprus?

Moving to Cyprus is easy if you have a strong desire and money.

Read more:

  • Short-term residence permit in Cyprus. Expectation and reality (link)
  • Cyprus Citizenship (link)
  • Permanent residence permit in Cyprus (link)
  • Banks in Cyprus (link)
  • How to open a personal bank account in Cyprus? (link)
Source: DOM LiVE
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