Registration of a company in Cyprus allows you to enjoy reduced taxation and working in the jurisdiction of the European Union.
The reputation advantages for doing business in Cyprus are obvious: the country is part of the EU, therefore the companies registered there are of European origin, while they are not offshore, which means they are excluded from the black list. This is what opens up opportunities for cooperation with European counterparties, as well as duty-free import of goods into the EU.
Registration of a company in Cyprus allows you to conduct business and investment activities with more than 50 countries of the world in Europe, Asia and Africa, with which the Republic of Cyprus has concluded agreements for the avoidance of double taxation, including with Russia.
Cyprus is a low tax jurisdiction with a corporate tax of 12.5%, which is considered one of the lowest tax rates in Europe (20-30% on average in the EU). The resident company must pay only local taxes. The VAT rate is 19%, which can be avoided if the recipients of the goods and services are not EU residents, as well as if the services were not provided in Cyprus.
For residents, income from the sale / purchase of securities, interest, dividend income and royalties, income from operations with real estate located outside Cyprus, income from any foreign branches, subsidiaries, etc. are taxed at a zero rate.
Provided that all business activities and sources of income are conducted outside Cyprus, a non-resident company will be able to avoid paying taxes. For non-residents, there are also no taxes on dividend payments, interest, income, royalties, and financial gains. However, firstly, such a company cannot take advantage of double taxation, and, secondly, it will be faced with the need to prove its subsistence (actual residence) outside Cyprus.
A Cyprus company can become a founder of subsidiaries in Russia or European countries. Income received in the form of dividends by a Cypriot company from a Russian subsidiary will be taxed at a rate of 5 or 10 percent.
Business confidentiality is respected in Cyprus. Due to the fact that Cypriot companies operate in accordance with English law, nominee service is officially allowed.
Registration of a company in Cyprus provides for the presence of an authorized capital in the amount of at least 1,000 EUR (the authorized capital is declared, there is no need to pay it). The minimum value of one share is 1 EUR. The minimum number of shareholders to register a Cyprus company is one, natural or legal person. The company name must be approved by the local registrar.
West Union can act as a secretary of the newly created company, as it has its own office in Nicosia, the capital of the Republic of Cyprus (the secretary must be a resident of Cyprus and have the appropriate licenses to provide this service). The simplified procedure for registering a company allows you to go through this path quickly, especially taking into account the removal of all legal issues of registration when contacting West Union. Consulting support when contacting the office includes resolving issues related to company registration, private banking, audit, tax planning. West Union also has the opportunity to offer to purchase a ready-made company. If necessary, clients can use the service of re-domiciling a company from another jurisdiction (BVI, Belize, Seychelles, Panama, etc.), that is, transferring a ready-made company to the jurisdiction of Cyprus.
The most popular form of company registration in Cyprus is LTD (Limited Liability Company). Cypriot businesses are often used in the financial sector (investment holding companies, insurance, financing, leasing), including for securities trading. Also, opening a Cypriot company is useful in international trade, real estate transactions abroad and its ownership, e-commerce, foreign economic activity, and cargo leasing.
The creation of a new company takes about two to three weeks, and there is no need to visit the country in person. Together with the company, you can open both a corporate and a personal bank account, which can be used remotely through online banking. There is no foreign exchange control in the country, and it is possible to pay on behalf of the company in any currency with which the bank works.
To maintain the activities of a Cypriot company, it is necessary to maintain accounting records, submit annual audits, income declarations and financial statements to government authorities. If the need arises, the closure of the company is carried out with the passage of a minimum number of bureaucratic procedures, while the company can be restored in the commercial register within 20 years.
Company registration in the Cypriot jurisdiction can also be considered for obtaining "economic citizenship", since direct investment in the country's economy allows foreign citizens to go through an accelerated naturalization procedure. The condition for obtaining a passport of an EU citizen and the right to visa-free visits is 150 st.