Cyprus - Company Incorporation

Company Type	Time to Incorporate	Cost
LLC	5 days	£2330

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.
• 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 company and its foreign employees if the international business company 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.