Cyprus Company Formation
Introduction to Registering a company in Cyprus
Cyprus company formation remains a dream destination for many foreign investors by offering an efficient and sophisticated business environment, coupled with a corporate tax rate of just 12.5%. Located south of Turkey in the north-eastern part of the Mediterranean Sea, Cyprus is the largest island in the eastern Mediterranean. Despite joining the EU as de facto divided island, the whole of Cyprus is considered EU territory.
Company Incorporation Cyprus is an attractive option, as the island has double-taxation treaties with over 60 other countries, including most of the high-tax countries in Western Europe, and many states in Central and Eastern Europe. As a low-tax centre, this makes Cyprus a particularly effective location for companies aimed at emerging markets. On top of this, the economy is strong and stable, and business costs are generally low. Since 2008 Cyprus adopted the Euro as its national currency, replacing the Cypriot pound.
Due to its favorable tax regime, Cyprus is the gateway to the European common market chosen by many non-EU companies and a portal for investment from the West into Russia, Middle-east, Asia and US. It is also a shipping hub, the Cypriot-registered vessel fleet is the fourth largest in the world, and provides large revenues. Cyprus is an exporter of produce, clothing and pharmaceuticals.
What are the main types of Cyprus Company Formation?
There are 3 types of company types commonly used;
- Private Limited company
What are the main features of a Private Limited company?
- no minimum share capital requirement
- number of shareholders must be between one and fifty
- company must have at least one director and one secretary
- Registered office required
What are the main features of a Branch?
- foreign parent responsible for all liabilities of Cypriot branch
- branch required to register with Registrar of Companies
What are the main features of a Limited liability Partnership?
- general partnership: between two and twenty members
- limited partnership: at least one partner with unlimited liability
- required to register with Registrar of Companies
Benefits of Cyprus Company Formation
Cyprus company formation offers several benefits including:
- Low Corporate Tax: Cyprus has a low corporation tax at 12.5% rate.
- One Shareholder: the minimum requirement is only one shareholder to incorporate along with one director where either or both can be any nationality and reside anywhere in the world.
- Ideal for Holding Company: Cyprus is well known where taxes are beneficial for holding companies allowing for greater freedom
- EU Membership: Having been a member of the EU since 2004, give Cyprus credibility as a safe place to incorporate.
How can I get more information on Cyprus Company Formation?
Cyprus offers benefits to its companies including; as a former British colony English Common Law System is used and English is its second official language and easy to open corporate bank accounts. Our experts in Euro Company Formations makes it easy for you to open a company in Cyprus and ensure your business gets off to the quickest and most cost-effective start.Contact US