Cyprus

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Cyprus is situated in the Eastern Mediterranean and is located about 75 Kilometers south of Turkey, lying at the hub of 3 continents and close to the busy trade routes linking Western Europe with the Arab World and the Far East. The legal system is based on the English common law. The national currency is the Cyprus Pound (C£). The official languages are Greek and Turkish, while English is widely used within the business environment.

General Information

• Type of Company – Limited Liability Company (LTD)
• Legislation - The Cyprus Company Law, Chapter 113, based on the English Companies Act of 1948.
• Company name - The names of existing company names at the Registrar of Companies and of a ‘general meaning’ are not approved and similarly names including words like ‘Royal’, ‘Queen’, ‘King’, ‘Saint’, ‘Common-wealth’, ‘International’, ‘Bank’, etc, are not approved either. Company names must end with ‘Limited’.
• Time-scale for incorporation - 7 to 10 working days.
• Beneficial Owners can retain anonymity from the public records of the Registrar of Companies through the use of Nominee Shareholders. Non-Resident beneficial owners must disclose their residential address and occupation through the submission of a Statistical Declaration form to the Central Bank of Cyprus.
• Double tax treaties currently 34 covering 40 countries, including India, UK, France, Mauritius, Austria, Canada, China, Russia, and United States.
• Ready-made companies are available.
• Money laundering legislation is in existence.
• Tax Resident Company - Tax at 10% on Business Profits (5% on interests, 0% on dividends), relief under the Cyprus Double Tax Treaty network. It is required that the majority of directors are based in Cyprus.
• Non-Resident Company - Exempt from tax. Cannot claim relief under the Cyprus Double Tax Treaty network. Majority of directors must be outside Cyprus.

Local Requirements

• Registered Office and Registered Agent must be maintained. Company Secretary must be appointed. May be a natural person or corporate body, in or outside of Cyprus.
• Public records of shareholders, directors, secretary, registered office, auditor, issued share capital and the memorandum and articles of association are filed with the Registrar of Companies and are available to the public.
• Accounts must be audited by resident auditor and records must be properly kept and maintained. Audited financial statements of Resident Companies are submitted to the tax authorities.

Corporate Requirements

• Minimum number of shareholders - One (1). May be natural persons or bodies corporate that may reside anywhere in the world.
• Minimum number of directors - One (1). Local individual Cypriot individuals or foreigners and a corporate entity may also be appointed. For effective management and control, the appointment of local director/(s) will render the company to be resident for tax purposes
• Minimum capital requirement - C£1,000, but is increased to C£10,000 if company wishes to operate an office in Cyprus.
• Standard Authorised Capital - C£5,000.
• Bearer shares are NOT permitted

Annual Requirements

• Annual return and annual statutory meetings are required.
• Statutory accounting is required.
• Annual government registration fee is NOT applicable.
• Annual Tax Return – Tax Resident Companies have to submit an Annual Tax Return. Non-Resident Companies are exempt from this requirement.