Q&A
What are the advantages of incorporating a Cyprus Company?
• Cyprus has an advantageous geographical location and time zone, it has become a prominent international business and financial center with very competitive and modern infrastructures, and sophistical, developed and efficient accounting, banking and legal sectors.
• The island has become a full member of the EU in 2004 and benefits ever since from EU treaties, directives and regulations which have been fully harmonized in the local legislation.
• The set up and maintenance of a Cyprus company is straightforward and the costs entailed are low and very competitive.
• Corporate bank accounts with local banking institutions can be easily opened without the need of physical presence.
• Cyprus has a unique tax system which combines financial privileges while being in full compliance with EU legislation.
• The island possesses one of the most beneficial tax systems in the EU, with a corporation tax at 12.5%.
• There is available an extensive network of double tax treaties.
• Holding companies are not subject to any withholding tax on dividends.
• Anti-money laundering framework is modern and in compliance with EU and American standards.
• …. and many more
What is the required structure of a Cyprus Company?
A Cyprus Company should have at least one shareholder. A beneficial shareholder may have the shares registered directly in its name or if the beneficial shareholder prefers to remain anonymous, our nominee services company can hold the shares in trust for such beneficial shareholder.
At least one director and a secretary must also be appointed in the Company. From an administrative perspective and from a tax point of view, since the management and control of the Company should be exercised within the jurisdiction, equal number of foreign and Cyprus national directors should be appointed in the Company. Our nominee services company can provide both director and secretary nominee services. Director(s) and Secretary appointed by the nominee services company perform their functions in accordance with the Cyprus Law requirements and instructions received by the beneficial owners of the Company, safeguarding thus smooth, fast and efficient provision of services and operations within the Company.
For the Cyprus Company to be considered as tax resident in Cyprus, the Company must have a registered office within the Republic, we can provide the Company with a registered office through our nominee services company’s registered address.
What is the difference between authorized and issued share capital?
The authorized share capital is the maximum number of shares that the Company is allowed to issue as per the provisions of its Memorandum and Articles of Association; the authorized share capital may be increased if and when needed by a decision of the shareholders of the Company. The issued share capital is the share capital that has been actually issued and allotted to the shareholders of the Company at a given point in time.
Does the issued share capital have to be paid immediately at incorporation?
The issued share capital of the Company does not need to be deposited immediately by the shareholder(s) of the Company, it can be taken through the shareholder(s)’ current accounts in the Company’s books and be paid for at any later stage.
How much time is needed to incorporate a Cyprus Company?
The time needed to register a Cyprus Company, provided all the documentation required from the client are received in the proper form and manner, is approximately 5 to 7 working days.