Cyprus Company Formation

Why register a Cyprus Company

Better tax planning is one of many reasons why people have chosen Cyprus for the purpose of establishing an International Business Company. Cyprus offers great tax incentives due to its favorable tax regime and its wide network of double tax treaties. Along with many other benefits, it makes Cyprus a desirable international business center.

Many of the well-known offshore tax jurisdictions impose low or nil income tax on the company profits. However the problem with those jurisdictions is that they do not have double tax treaties

Why Choose a Cyprus Company?

  • European jurisdiction
  • Legislation based on an English legal system
  • English language as main language of communication
  • Large number of specialists (auditors and lawyers)
  • Appeling and reasonable corporate tax rate of 12,5%
  • Various types of income is not taxed (0%)
  • There are 59 active Double Taxation Treaties (DDT) that give an advantage when conducting business

Other jurisdictions can provide the same services up to a certain extent; however, Cyprus companies combine all the above services, making them most efficient in the EU for solving corporate issues.

How are Cyprus companies used as an instrument for conducting international business?

Over the past 20-30 years there have been noticeable changes when it comes to international business. Companies nowadays are mostly used for tax planning, however, the more flexible and universal they are, the greater the benefits received by the owner of the company. When choosing a country of registration and the type of company, it is important to consider the following parameters:

  • Features of income taxation
  • Probable exemptions
  • Double Taxation Agreements
  • Types of planned activities

Managing the company carefully will not only allow minimized expenses and taxes, but will also aid in the protection of the company’s assets.

When creating a structure for a new project and before registering the company, we always advise our clients to carefully analyze the following information, which will define the cycle of work of the company:

  • Who will be elected as the Director and Shareholder of the company
  • How will the project be funded at the initial stages of its development
  • Determine the operations of the company
  • The destination of the cash flow
  • How the income is generated
  • What taxes will have to be settled for the companies planned operations
  • How will the income of the project be distributed
  • How is the income planned to leave the project at the final stage

With any issues regarding the above, we advise our clients to contact our team of professionals. This will help with the prevention of any potential misunderstandings and allows us to evaluate the project’s tax burden.

Most used Cyprus Companies types