A Cyprus company, if structured correctly, can provide a tax-efficient way to conduct international business. The following information will help you determine whether a Cyprus company formation is the optimum corporate structure to fulfill your international business objectives:
Advantages of a Cyprus Company include:
- The use of a Cyprus company allows entrepreneurs to legitimately conduct business in Cyprus and internationally subject to a corporate tax rate of 12,5%, among the lowest rates in the European Union (EU). Furthermore, Cyprus is positively ranked as one of the 50 most free world economies in the Heritage Organisation’s 2018 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets, placing Cyprus way ahead of Italy, Spain, Kuwait and Bahrain.
- A Cyprus company may be incorporated with 100% foreign ownership. For a Cyprus private company, a minimum of one shareholder and one director is required for company registration. Corporate or natural persons (of any nationality) may act as shareholders and directors.
- Dividends paid to a Cyprus resident company are exempt from corporation tax, whether they are received from a foreign company (subject to certain conditions) or another Cyprus resident company (with certain conditions applying). There is also no withholding tax on dividends that are repatriated to a non-resident shareholder individual or company.
- A Cyprus company can benefit from a network of double taxation treaties with more than 60 countries, including; Canada, Russia, Poland, China, France, India, Ireland, Singapore, South Africa, the UK and the US, further adding to the potential benefits of a Cyprus company formation.
- The Common Law basis of the legal system constitutes a Cyprus company an ideal vehicle for holding and investment purposes.
- For more information, visit our Starting a Business in Cyprus webpage. Once we have assisted with Cyprus company formation, Savva & Associates can assist with the application for opening a corporate bank account with any of the Cyprus banks or with one of the world's leading retail banks.