Type of Cyprus company available:
International Business Company (IBC)
This company can be used for many different purposes, and can be treated as:
- A Cyprus Trading Company
- A Cyprus Holding Company
- A Cyprus Consultancy company
Capital requirement for a Cyprus company:
There is no minimum capital requirement. The money for the company’s share capital does not have to be paid into the company's bank account. If the fees paid for the registration and set-up of the company exceed the share capital amount, this automatically means that the share capital has been paid.
Restrictions upon the activities of a Cyprus company:
Special permission is required for some types of services, including banking, insurance, forex and financial services. A special licence (from Cysec) is also required for investment companies (which invest money on behalf of third parties).
Taxation of a Cyprus company:
Taxed at the rate of 12.5% on the net profits of an International Business Company.
No taxation on income from dividends or disposal of securities
Double Tax Treaties between Cyprus & other countries:
Cyprus has tax treaties with many countries, including with the main Western European and North American countries and almost all Eastern European countries. Low taxation combined with the benefits provided by its treaties with many countries make Cyprus a highly desirable location for international tax planning.
Annual Tax Returns:
Annual tax returns have to be submitted
Annual Financial Reporting of a Cyprus company:
Annual Financial Statements are required to be prepared. A copy is filed with the Registrar of Companies, together with the Annual Returns.
Registered Office & Registered Agent in Cyprus:
The registered office must be situated in Cyprus.
Registered agent in Cyprus: Not required.
Company Secretary in a Cyprus company:
The company secretary can be of any nationality and residence and can be a physical person or a corporate entity.
Directors in a Cyprus company:
A minimum of one director is required. They can be of any nationality and residence and can be a physical person or a corporate entity.
Shareholders in a Cyprus company:
A minimum of one shareholder is required.
Disclosure of Beneficial Ownership of a Cyprus company:
There is currently no requirement to disclose the beneficial ownership to any Government Authority. However, this has to be disclosed, in confidence, to banks if a bank account is opened in Cyprus.
Bearer shares in a Cyprus company: Not allowed
Exchange controls in a Cyprus company:
Language of corporate documentation in a Cyprus company:
English is almost always acceptable. Sometimes though, it is necessary to prepare documents in Greek.
Time frame for incorporation:
Legislation for Money Laundering Prevention in Cyprus:
The Prevention and Suppression of Money Laundering Activities Laws of 2007 to 2018 are applicable in Cyprus.
Company Law in Cyprus:
Companies Law, Cap.113.
The main body of the Law in Cyprus has been in force since 1952 and it was an exact copy of the Companies Act 1948 of the UK. Recently, it has been amended to incorporate European Union directives.