If correctly-structured, a Cyprus company formation 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 fulfil your international business objectives:
Advantages of Cyprus Company Formation include:
- Cyprus company formation allows
entrepreneurs to legitimately conduct business in Cyprus and internationally at
a corporate tax rate of 10%, the lowest rate in the European Union (EU).
Furthermore, Cyprus is positively ranked as the world's 24th freest economy in
the Heritage Organisation’s 2010 Index of Economic Freedom, a measure of
freedom enjoyed in business, trade, monetary, financial, investment and labour
markets.
- A Cyprus company incorporation can be
made with 100% foreign ownership. For a Cyprus private company, a minimum of
one shareholder and one director is required for company registration.
Corporate shareholders and directors are permitted, and can be of any nationality.
- 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. There is also no withholding tax on dividends that are repatriated to
a non-resident shareholder individual or company.
- A Cyprus company accesses double
taxation treaties with almost 50 countries, including with Canada, Russia,
Poland, China, France, India, Ireland, Singapore, South Africa, the UK and the
US, further adding to the potential benefites of a Cyprus company formation.
- A Cypriot company is ideal for
holding and investment purposes. For more information, visit our Starting a
Business in Cyprus webpage.
- Following Cyprus company formation, Savva
& Associates can open a corporate bank account with one of the world's
leading retail banks, including HSBC, Standard Chartered and Citibank.
- Forbes Tax Misery Index 2009 rated Cyprus as having the 6th lowest tax misery in the world. The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent.
