Set Up a Business in Cyprus
Opening a company is an easy thing to do in Cyprus. The Cyprus' Government is helping the foreign investors in its attempt to attract foreign capital especially by using low tax system and red tape.
The registration procedure does not take longer than 2 weeks and the UBO (Ultimate Beneficial Ownership) decided which one of the types of business regulated by the Company Law:
- Limited liability companies
- Public limited companies or company limited by guarantee or general and limited partnerships
Setting up of a company in Cyprus must begin with choosing a unique name that can be checked at the Registrar of Companies.
The memorandum of association, notarized and elaborated by a lawyer must be deposit, along with the specific documents at the Companies Section of the Department of Registrar of Companies and Official Receiver.
After registration, the Ministry of tax must provide a unique tax number and a VAT. The last step is registering at the Ministry of Labor for Social Contribution.
Cyprus has many advantages to offer for the investors, especially in the transportation areas. For example, the profits from the operations of the Cypriot vessels are not taxable. Also, the dividends of the companies that own ship are exempt from tax. It is located at the crossroads of three continents. Joining EU in 2004 bring major advantages to the foreign investors, such as allowing the foreign ownership of a company, increasing demand for property.
Also, double tax treaties were signed with more than 40 countries, in order to avoid the double taxation of the incomes of the foreign companies.
Cyprus has an excellent infrastructure, with 2 international airports, 2 shipping ports (Limassol and Larnaca) and a modern road network. This facilitates the export and import of the goods.
International companies and banks are operating in Cyprus attracted by the small costs, economic freedom and the well trained local companies, ready to counsel if necessary.
The hot weather, the culture and the Mediterranean cuisine are attracting tourist all year long.