Cyprus is an island republic in the Mediterranean. Since 2004, this jurisdiction has been part of the European Union. Registration of a company in Cyprus was previously considered an interesting decision because this state has one and Africa and the developed economy of Western Europe.
Company registration in Cyprus is a step-by-step and clearly structured procedure. Our specialists provide investors who want to register their own business in the Republic of Cyprus, with individual advice and support.
The main advantages of registering a company in Cyprus
- Full member of the European Union (the ability to carry out actual activities in any country of the European Union)
- One of the lowest corporate tax rates in Europe – only 12.5% on net income
- Low cost of organizing a business
- Lack of exchange controls
- A large number of treaties for the avoidance of double taxation with other countries
- Facility to open an account with a European bank
- The ability to open a company and a bank account in the same country
- The possibility of obtaining a certificate of tax residency in Cyprus is not an offshore jurisdiction
Who benefits from starting a business in Cyprus?
The proposals of the Cypriot government can open up wide opportunities for wealthy people:
- wishing to keep assets in an economically stable country;
- seeking to conduct business in a non-corruption space;
- planning to enter the European and world markets for their company;
- taking care of personal safety;
- in need of an alternative place of residence;
- those who wish to travel without a visa to more than 170 countries.
What activities can the company conduct in Cyprus?
- business in Cyprus activities
- trade and intermediary services;
- functions of the head office of the company;
- holding and investment activities;
- construction and engineering;
- activities of companies receiving royalties from their core activities;
- the publishing house and printing house;
- real estate industry;
- ship-owning and administrative activities in the field of maritime transport;
- international banks;
What does the registration of a business in Cyprus give?
Registration of a company in Cyprus makes it possible not only to transfer business assets to the European zone but also to obtain a passport of a country that is a member of the European Union. Cyprus recognizes second citizenship, that is, you can remain a citizen of Russia.
Conditions for obtaining Cypriot citizenship:
- Invest at least 2.5 million euros in the purchase, creation, or participation of a Cypriot company.
- Or invest at least 2 million euros in an alternative investment fund.
If you choose the first option, the company must employ at least 9 citizens of Cyprus or EU member states.
If you participate in the Cyprus investment program, then the citizenship registration takes place for you according to a simplified procedure – in just 6 to 8 months. There are almost no countries in the European Union that are ready to issue a passport for investment in a business. The second citizenship by investment in a smaller amount (from 750,000 €) is offered only by Malta. However, the Maltese program does not provide the opportunity to open or participate in a business. The time frame for obtaining citizenship in Malta is 12 to 36 months.
Note that in most European countries, you can invest a certain amount in the national economy and get official status in return, for example, a residence permit. You can verify this by reading our overview of ways to obtain a residence permit in Europe. An investor can apply for citizenship only after 5-12 years of residence permit. Thus, Cyprus has the most advantageous offer for entrepreneurs.
You can buy a business in Cyprus quickly and profitably. In doing so, you will receive European citizenship and become the owner of a profitable company.
Cyprus business taxes
The VAT rate in Cyprus for individuals is 19%, while there are many opportunities to take advantage of preferential taxation. The dividend tax for tax residents of the country is 17%.
Capital gains tax for legal entities – 20%. The corporate tax rate in Cyprus is 12.5%. This is one of the lowest rates in the EU.
How fast is it to open a company in Cyprus?
Among the forms of business, the most popular in Cyprus is a private company with a liability limited by shares.
On average, the registration procedure takes 10-30 business days and has a fairly flexible schedule. If usually, the registration of a new company takes place in 15-20 days, then for an additional fee (urgent tariff) this period can be reduced to 3-6 days. So the stories about quickly starting a business in Cyprus are by no means groundless.
Usually, a minimum package of documents is required – it is different for each form of business. The list of documentation must be checked with specialists. The registration itself is carried out in the Department of Registration of Companies, where you must apply along with copies of the passports of shareholders and founders.
There are some small restrictions when choosing a company name. For example, any, including international, business in Cyprus cannot bear a name containing the word International.