A Cyprus company is a Limited Liability Company (Ltd) by shares, which, as defined in the Cyprus Company Law Chapter 113, is ‘a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on shares respectively held by them’. Further as an international business entity, a Cyprus company can provide a tax-efficient way to conduct international business accompanied by several other advantages as subsequently stated. The type of the company formed is that of an International Business Company (IBC) with the incorporation process taking 7 to 10 days.
GFA TRUST have in-house qualified lawyers at the office in Cyprus for a fast and professional formation service. Our firm is fully controlled and operated through qualified lawyers and thus a professional, quality and trust worthy service is guaranteed.
Cyprus’ jurisdiction has a corporate tax rate of 12, 5%, which is categorized among the lowest rates in the European Union. Dividends paid to a Cyprus resident company are exempted from corporation tax, regardless from the source of origin i.e. whether they are received from a foreign company (subject to certain conditions) or another Cypriot legal entity. Furthermore no withholding tax is imposed on dividends deriving from the process of repatriation to a non-resident shareholder either natural person or legal entity.
The Cypriot jurisdiction is unquestionably advantageous for holding companies, which satisfy certain minimum requirements, as they can be established with 0% tax rate on dividends.
Further to the above a company incorporated in the Republic of Cyprus can benefits from double taxation treaties, with almost 60 countries, and can also proceed with liquidation of the Cypriot Holding Company itself with no capital gains or income tax. Last but not least re-organisations, mergers, de-mergers, exchange of shares and transfers of shares are made without any taxation.
Further to the above, the jurisdiction’s Local Requirements are limited to the existence of a Registered Office/Registered Agent which/who is to be located in the Republic of Cyprus. It is obligatory for the company to have a Secretary which can be a non-Cyprus resident, or a legal entity, established outside of the Republic of Cyprus. There is no legal obligation that the meetings of the company take place in the Republic of Cyprus, as the location of the Board Meetings, can be placed anywhere in the world as also the company’s administration. The minimum number of Directors and Shareholders is 1.
Public filings are a pre-requisite for the Director(s) and Shareholder(s) of the company and not for the Ultimate Beneficial Owner(s). Furthermore, in connection to the Annual Filing Requirements, there exists both the obligation for the submission of the company’s Annual Return and Audited Accounts.
Whereas the issuance of bearer shares is non-acceptable, company re-domiciliation is permitted, as also, the acquiring of shelf companies and the appointment of Corporate Directors.