Cyprus - Company Incorporation
Incorporation and fiduciary services
- Assisting in the incorporation process
- Drafting Memorandum and Articles of Association
- Obtaining all necessary permits for registration
- Arranging the provision of registered office
- Arranging the provision of nominee shareholders
- Arranging the appointment of local directors and company secretary.
Corporate administration services
- Handling corporate changes
- Handling statutory filing requirements
- Maintaining statutory records
- Arranging the opening and operation of bank accounts
- Providing telephone, email and fax services
- Providing company secretarial support
- Dealing with Central Bank and other local authority issues
Companies established in Cyprus and their foreign employees enjoy many privileges. A summary of these is given below together with details of the facilities and concessions extended to international companies.
- No withholding of tax on dividends.
- Full tax exemption on profits of international business partnerships.
- Full tax exemption on profits of international business branches if their management and control is outside Cyprus.
- All expenses incurred for the earning of income, as well as annual allowances on fixed assets, are allowed as a tax deduction.
- Full estate duty exemption on inheritance of shares in an international business company.
- Full capital gains tax exemption on capital gains, except on sale of immovable property situated in Cyprus.
- Full exemption from local social insurance schemes in respect of foreign employees of international business entities.
- Full stamp duty exemption on contracts entered into by international business entities.
- Foreign employees of international business entities providing their service in Cyprus, are liable to Cyprus income tax at a rate equal to half the normal Cyprus rates. Normal rates range from nil to 40% and, therefore, the maximum tax rate of such employees is 20%.
- Foreign employees of international business companies living and working outside Cyprus are exempt from income tax if they are paid through a bank operating in Cyprus. If such employees are paid directly abroad they are taxed at a rate equal to one-tenth of the standard rates and, therefore, their maximum tax rate is 4%.
- Full import duty exemption for the importation or purchase of cars, office and household equipment (except furniture and air-conditioning equipment) for the use of the of the international business entity and its foreign employees if the international business entity maintains a fully fledged office in Cyprus.
- Residence and work permits for the foreign employees and residence permits for their families can be readily obtained if they maintain an office in Cyprus.
- Freely transferable currency accounts can be kept both in Cyprus and abroad.
- No exchange control restrictions.
