Cyprus

Is the third biggest island in the Mediterranean Sea, its territory is 9251 sq km large. Population - 700 000, official language - Greek and Turkish. National currency is Cyprus pound (CYP), 1 CYP = 1, 96 USD

Geographical location

Advantages Low taxation - 10% tax of net profit (since 01.01.2003)
Has double tax treaties with the 33 countries
Hard constraint of confidentiality
Disadvantages Requirements:
-bank reference to real owner of the company
-information about the shareholders: name, address, nationality, place of residence
But this information is confidential
Corporative legislation Companies Act - 1968, modification of act - 1977, 1979, 1985, 1986, and 1990
Type of the company IBC
Authorized business activities All and any activities not prohibited by the law, except banking, insurance, reinsurance, financial services
Prohibited activities Can not trade with resident individuals or companies situated in Cyprus
Taxation This integration contains a uniform corporation tax rate of 10%, payable by local and international business companies alike starting from 1 January 2003
The dividends paid to the Cyprian tax residents are subject to the taxation under the rate of 15 % basing on prospective distribution of 70 % from 90 % of the profit, which remain after paying the 10 % corporate tax
Dividends paid to foreign corporations and foreign individuals will be exempt from withholding tax
Name of company Name of the company must not be identical or confusingly similar to the existing ones
The name must end on words Limited or Ltd
Equity capital of the company The minimum amount of declared equity capital makes 1000 CYP
Recommended equity capita 5000 CYP, divided into 1000 shares par value 1 CYP
Shares Emission of registered shares with par value only
Shareholders
- Minimum number
- Nominal shareholders
- Holders of trust equities
- Breakdown of shares when registering

One, natural or legal entity
Permitted
Permitted
Minimum number - two
Does the law provide for non-disclosure of the information?
- About actual owner of the company
- About bank operations


No
Yes
Directors
- minimum number
- nationality and citizenship
- status

One natural or legal entity
No requirements
All the powers apart from those falling into the exclusive competence of members (determined by articles of association)
On the territory of Cyprus there has to be
- registered office
- registered agent
- local secretary

Required
Not required
Required (one natural or legal entity)
Holding of the meeting of
-shareholders
-directors

Annual meeting required
Not required
Mandatory
- keeping of accounting records
- annual account

- presentation of auditor's conclusion

Yes
The company submits annual account to the Central Bank of Cyprus and declaration of profit to tax institutions
Yes
Information at disposal to the third party Names and addresses of directors and shareholders, registration address, statute and memorandum, credit claim
Documents held at registration office Register of shareholders, directors and secretaries, credit claim
Agreements on exemption from double taxation All countries of CIS (except Georgia), Austria, Greece, Romania, Bulgaria, Hungary, Canada, Ireland, Slovakia, Czech Republic, Italy, Sweden, Denmark, Kuwait, Great Britain, France, Norway, USA, Germany, Poland, lapsed Yugoslavia, China, Malta, Syria, Belgium, Egypt, Finland
Currency control No
Term of incorporation 4 weeks
Financial year ending on Look for: Annual support of companies
Costs of registration of company Look for: Costs of registration and service
Possibility to purchase a ready-made company Yes, look for: Ready made companies