Bariono Wealth Advisors Ltd
Cyprus Company Formation
Cyprus enjoys the privileged position of being an EU member and a reputable international business centre. With substantial tax incentives, a wide network of Double Tax Treaties covering all central and eastern European countries and a strategic geographical location at the crossroads of Europe, the Middle East and Africa, Cyprus is the perfect location for international business companies.
The process of incorporating a business in Cyprus is a quick and straight-forward procedure. As soon as an appropriate name is chosen* and the relevant application forms are submitted to the Registrar of Companies, the approximate time required for incorporation to be completed will range between 10 to 15 days.
*Appropriate names are those not already registered in Cyprus or other jurisdictions and which are not in any way offensive or misleading.
Cyprus companies’ requirements at a glance
- Minimum share capital issued: €1.00
- Shareholder: At least one shareholder must be appointed, but they do not have to be a Cyprus resident.
- Directors: At least one director must be appointed, but they do not have to be a Cyprus resident.
- Secretaries: Required. It is advisable that they are a Cyprus resident.
- Registered office address: The company must have a registered address in Cyprus.
- Annual returns: Required. All Cyprus companies are required to submit annual audited financial statement. There are no exemptions for small or dormant entities.
- Annual General Meetings: At least one general meeting must be held on an annual basis. The first annual meeting must take place within 18 months from the date of incorporation.
- License fees: Annual company levy of €350
- Corporation tax rate of 12.5%
- VAT returns: Companies which engage in activities which are not VAT-exempt must register with the VAT department and submit quarterly VAT returns.
The incorporation principle has not been adopted in Cyprus. As a result, a Cyprus company (under the Income Tax Law of 2003 (118(I) 2002)) can be either tax resident in Cyprus or non-tax resident. A company is deemed resident for tax purposes in Cyprus only if it has its management and control in Cyprus, regardless of its country of incorporation.
Where a Cyprus company does not have its management and control in Cyprus then the company is subject to 0% taxation on its worldwide income in Cyprus and to 12.5% on any income generated in Cyprus. For the non-residency rule to apply, the company’s directors, in their majority, must exercise management and control outside Cyprus.
A Cyprus non-tax resident company is not exempted from the requirement to submit annual tax returns, indicating in which country its generated income will be taxed. Cyprus non-tax resident companies are also required to submit annual accounts to the Registrar of Companies in line with the requirements of the Cyprus Companies Law, Cap. 113.
- Cyprus legislation favours foreign investors seeking to establish companies here.
- Cyprus boasts one of the lowest corporation tax rates in the European Union at 12.5%.
- Dividends paid to a Cyprus resident company are exempt from corporation tax. There is also no withholding tax on dividends declared by companies to non-resident shareholders.
- There is an 80% exemption on qualifying profits generated from the exploitation of intellectual property.
- Cyprus has a wide network of double taxation treaties with more than 50 countries.
What we can do for you
Bariono Wealth Advisors provides a comprehensive set of services in relation to company formation in Cyprus.
- We stand by your side throughout the process of establishment, maintenance and administration of your business.
- We look into your specific circumstances and provide structuring advice with a strong focus on effective tax planning structures.
- We handle all the necessary paperwork during the incorporation stage, ensuring that your application is processed in a prompt and efficient manner.
- We help you open a corporate bank account with any bank of your choice.