Business registration in Cyprus
Benefits of business registration in Cyprus:
- Beneficial geographical location – the island is located at intersection of Europe, Africa and Asia
- Well-developed infrastructure, including banking, insurance, IT, air and maritime logistics etc.
- Cyprus is a Member-State of EU since 2004, that gives free access to European single market
- The company registration procedure is quite simplified and straightforward (online-registration is also possible)
- 100% foreign owed capital is allowed
- No requirement on the minimal amount of a statutory capital
- At least 1 shareholder and 1 director for a company are required (they may be invdividuals and legal entities)
- The secretary appointment is required
- A foreign company may be redomiciled to Cyprus jurisdiction
Company setting up in Cyprus:
- The name of a company must be pre-approved by Companies Register (the approval is valid for 6 months only)
- The information about registered office in Cyprus, company`s director, shareholder and secretary must be submitted to Companies Register
- companies are obligated to keep accounting records, storage all documents that relate to business activities and submit annual audited financial accounts
- Corporation Tax rate – 12.5%, VAT rate – 19% (lower rates – 5% and 9%, zero rate – 0% are applicable for some sorts of goods)
It is mandatory to register for VAT if:
- Cost of goods/services supplies exceed €15,600 in 12 months period (or it is expected the taxable turnover to exceed in the next 30 days)
- A purchase of goods/services of a legal entity resident of another Member State of EU in Cyprus exceeds €10,251.61 per one month or it is reasonably expected to exceed in the next 30 days.
VAT Tax Return must be filled by the 10th day of the month following the end of it.
Cyprus has entered into DTAs with more than 60 countries including Austria, Belgium, Bulgaria, Canada, Czech Republic, China, Hungary, Germany, Ireland, Italy, Malta, Poland, Romania, the UK, the USA and Ukraine etc.
Since 2018 Cyprus participates in Automatic Exchange of Information regarding bank accounts on a global level, between tax authorities, which the Organisation for Economic Co-operation and Development (OECD) with respect to the Common Reporting Standard (CRS).
