Cyprus has escaped its reputation as an offshore tax haven and is now an important member of the EU. The country provides an efficient and sophisticated business environment which is favourable for foreign investors. Taxation in Cyprus is particularly beneficial, with the country widely recognised as a low tax centre. Corporate Tax is 10%, one of the lowest in Europe, and the country has 44 double taxation treaties with countries across the world, including areas of high tax in Western Europe. Cyprus also has a strong central economy and low cost business environment.
Universal Company Incorporations has extensive knowledge and expertise in Cypriot company formation. Our team of local specialists will assist you will the local language, cultural differences, business practices and legalities to ensure a smooth transition into Cyprus for your business expansion.
Company Set Up Options
There are three main types of company to incorporate in Cyprus:
- Limited Company is the most popular format as its requirements are easily manageable and owners are protected from full liability
- A Branch is useful for getting a foothold in the country via a small business entity
- Limited Liability Partnership combines the flexibility and protection of a Partnership and Limited Company.
Offshore companies are incorporated in Cyprus but are not tax residents, and so are not subject to any Cypriot taxation. The offshore company must be managed and controlled, the majority of the directors should reside, and board meetings must be held, outside of the country. This allows the company to be considered a non-Cypriot tax resident and so exempt from any Cypriot taxation.
Cyprus is generally regarded as a business-friendly low-tax centre. Most of the regulations in Cyprus follow EU directives and while not restrictively stringent, are much more rigorous than it was previous to joining the EU. Governmental regulations are encouraging; with the Corporation Tax rate currently standing at 10% and low treaty Withholding Tax rates.
Universal Company Incorporations has experience with Cypriot regulations. We will help you to use the regulations to your advantage, giving you greater flexibility to compete in the market. Our contact with local lawyers and accountants keeps us up to date with any legislative changes and will ensure your complete compliance.
Banking Facilities and Financial Incentives
Banking facilities in Cyprus have improved with the country’s emergence as an efficient and sophisticated business environment. Cyprus boasts an international banking and investment centre, with the representation of most major international banks. The Bank of Cyprus oversees the national financial system, ensuring stability and moderation.
In terms of financial incentives, the Cypriot government is not particularly generous, although the country’s low-tax regime can arguably be seen as an incentive for foreign investment. The Larnaca free trade zone provides exemption from customs charges for companies located in the zone. There are also various grants and loans available for foreign investors in certain traditional economic and high-tech sectors, and concessional rates of Personal Tax for expatriate workers.
Our team at Universal Company Incorporations will help you set up a bank account suited to your business plans and ensure your transactions are being executed securely through the Cypriot banking facilities. We will also make sure that you take advantage of all the applicable financial incentives, saving you time and money.
The Cypriot labour pool generally offers well educated and skilled workers. In relation to the EU average, the rate of pay for employees is low. However, the booming economy and diversified business environment has created near-full employment in Cyprus, and so obtaining the advice of a local specialist recruitment company is recommended to find the best staff.
Universal Company Incorporations have established a strong working relationship with a Cypriot recruitment specialist. With their help we will be able to understand your business and staffing requirements to expertly find the right employees to expand upon your core business in the country. We will help you navigate company and labour laws, and increase the productivity of your company through its expansion.
Universal Company Incorporations is always on hand to guide you through all of the stages of forming a new enterprise or expanding an existing company in multiple countries. Please don’t hesitate to call us on +44 (0) 20 8421 7480 or contact us via the website for help and advice.