Cyprus
Background information
The Republic of Cyprus is situated on the island of Cyprus in the eastern Mediterranean. Its total territory is 9251 km², its capital is Nicosia. The official languages are Greek and Turkish, but English is also widely used. The official currency is Euro. There are laws on currency exchange regulation, but they do not apply to offshore companies. The legal system of Cyprus is based on the legal system of the UK.
Specifics
This jurisdiction can be very convenient for creating tax efficient business structures. Cyprus offshore companies benefit from treaties on avoiding double taxation that Cyprus concluded with other countries, including the Russian Federation. That is why Cyprus is perfect for the establishment of the affiliated companies in Russia, for investments in the Russian companies for the stock market activities in Russia, for the construction works and many others.
Company registration
Time required to register: one month, including the registration itself and the preparation of a mandatory set of charter documents and getting them apostilled.
Process of registration: the Memorandum and the Articles of Association are prepared for the Registrar of Companies. And in order to exempt the company from currency control regulations, information on the company’s beneficial shareholder (non-resident in Cyprus, either a natural person or a legal entity) and a letter of reference from a bank should be submitted to the National Bank of Cyprus. This information is kept in the National Bank of Cyprus and it is not available to general public).
Type of company: a Cyprus offshore international business company
Company name: a company name in English is allowed. All limited liability companies' names should end in “limited” or “LTD”.
Charter capital: the minimum charter capital is 1000 Euros.
Shares: only assigned shares are allowed.
Requirements to the office: a registered office in Cyprus is necessary.
Corporate law: the relevant legislation is Cyprus Companies Law, Cap. 113, which is based on the similar English act – Companies Act 1948.
Prohibited activities: an offshore company may not participate in banking and insurance activities or to derive profits from the sources in the country of registration.
Confidentiality: The information of the shareholders, directors and secretaries is kept in the Registrar and is available to public. Information on beneficial shareholders is not disclosed to public.
Taxation: the profit tax rate is 10%. Cyprus has signed treaties on avoiding double taxation with over 40 countries, including Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, Check Republic, China, Denmark, Egypt, France, Germany, Greece, Hungary, India, Kuwait, Kyrgyzstan, Lebanon, Malta, Moldova, Montenegro, Norway, Poland, Romania, Russian Federation, San Marino, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Thailand, Ukraine, Ireland, Italy, Great Britain, USA, Serbia, Uzbekistan, Mauritius, Tadjikistan, Turkmenistan. This list is subject to change, and it is recommended to check on status of a certain treaty with the Embassy of Cyprus.
Audit and accounting
The accounting reporting is mandatory. An annual statement of the company's operations and financial report with the audit are necessary. The first financial reporting period should not exceed 18 months since company registration.
Structure of the management
Directors
The minimum number of the directors is one, and it can be either a body corporate or a natural person, citizenship of Cyprus is not required. The nominee directors are allowed.
Secretary
A Secretary is obligatory, and it can be either a body corporate or a natural person. The sole Director of a company is not allowed to be a Secretary.
Shareholders
The minimum number is two for a private company and seven for a public company.
Directors' meetings
Annual meetings are obligatory, but they can be held over telephone or fax.
Shareholders' meetings
They should be held annually, but there is no requirement of attendance in person.
The Republic of Cyprus is situated on the island of Cyprus in the eastern Mediterranean. Its total territory is 9251 km², its capital is Nicosia. The official languages are Greek and Turkish, but English is also widely used. The official currency is Euro. There are laws on currency exchange regulation, but they do not apply to offshore companies. The legal system of Cyprus is based on the legal system of the UK.
Specifics
This jurisdiction can be very convenient for creating tax efficient business structures. Cyprus offshore companies benefit from treaties on avoiding double taxation that Cyprus concluded with other countries, including the Russian Federation. That is why Cyprus is perfect for the establishment of the affiliated companies in Russia, for investments in the Russian companies for the stock market activities in Russia, for the construction works and many others.
Company registration
Time required to register: one month, including the registration itself and the preparation of a mandatory set of charter documents and getting them apostilled.
Process of registration: the Memorandum and the Articles of Association are prepared for the Registrar of Companies. And in order to exempt the company from currency control regulations, information on the company’s beneficial shareholder (non-resident in Cyprus, either a natural person or a legal entity) and a letter of reference from a bank should be submitted to the National Bank of Cyprus. This information is kept in the National Bank of Cyprus and it is not available to general public).
Type of company: a Cyprus offshore international business company
Company name: a company name in English is allowed. All limited liability companies' names should end in “limited” or “LTD”.
Charter capital: the minimum charter capital is 1000 Euros.
Shares: only assigned shares are allowed.
Requirements to the office: a registered office in Cyprus is necessary.
Corporate law: the relevant legislation is Cyprus Companies Law, Cap. 113, which is based on the similar English act – Companies Act 1948.
Prohibited activities: an offshore company may not participate in banking and insurance activities or to derive profits from the sources in the country of registration.
Confidentiality: The information of the shareholders, directors and secretaries is kept in the Registrar and is available to public. Information on beneficial shareholders is not disclosed to public.
Taxation: the profit tax rate is 10%. Cyprus has signed treaties on avoiding double taxation with over 40 countries, including Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, Check Republic, China, Denmark, Egypt, France, Germany, Greece, Hungary, India, Kuwait, Kyrgyzstan, Lebanon, Malta, Moldova, Montenegro, Norway, Poland, Romania, Russian Federation, San Marino, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Thailand, Ukraine, Ireland, Italy, Great Britain, USA, Serbia, Uzbekistan, Mauritius, Tadjikistan, Turkmenistan. This list is subject to change, and it is recommended to check on status of a certain treaty with the Embassy of Cyprus.
Audit and accounting
The accounting reporting is mandatory. An annual statement of the company's operations and financial report with the audit are necessary. The first financial reporting period should not exceed 18 months since company registration.
Structure of the management
Directors
The minimum number of the directors is one, and it can be either a body corporate or a natural person, citizenship of Cyprus is not required. The nominee directors are allowed.
Secretary
A Secretary is obligatory, and it can be either a body corporate or a natural person. The sole Director of a company is not allowed to be a Secretary.
Shareholders
The minimum number is two for a private company and seven for a public company.
Directors' meetings
Annual meetings are obligatory, but they can be held over telephone or fax.
Shareholders' meetings
They should be held annually, but there is no requirement of attendance in person.
Should you wish to find out more about our services, you can contact us in any way convenient to you
(telephone/fax/e-mail/Skype), and our employees will be happy to be of assistance to you.
(telephone/fax/e-mail/Skype), and our employees will be happy to be of assistance to you.