Cyprus Company

The Cyprus Limited Liability Company

Cyprus is a member of the European Union and is situated in the Eastern Mediterranean, situated at the hub of three continents and close to the busy trade routes linking Western Europe with the Arab World, Africa and the Far East. The legal system is based on the English common law. The national currency is the European currency which is the Euro. The official languages are Greek and Turkish, while English is widely used within the business environment.

The Cyprus Resident vs. Non-Resident Company

A Cyprus company, under the Income Tax Law of 2003 (118(I) 2002) can be either Tax Resident in Cyprus or Non-Tax Resident.

Tax Resident Company

A tax resident company is a company whose management and control is exercised in Cyprus. Hence the majority of directors must be in Cyprus. Tax resident companies pay 12.5% tax on its worldwide business profits (5% on interest income, 0% on dividend income) and claim relief under the Cyprus double tax treaty network.

Non-Resident Company

A non-resident company is a company where the management and control is exercised outside of Cyprus. Hence the majority of the directors must be outside Cyprus. A non-resident company is taxable at 0% on its worldwide income. Any income generated in Cyprus is taxed at 12.5%.

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 companies and names of a ‘general meaning’ will not be approved. 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 through the use of nominee shareholders.
  • Double tax treaties, currently 59 covering countries such as India, France, Mauritius, Austria, China, UK, Russia and the United States.
  • Shelf companies are available
  • Money laundering legislation is in existence

Local Requirements

  • Registered Office and registered agent must be maintained
  • Company Secretary must be appointed, may be a natural person or corporate body but must be a resident 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 a 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 a natural person or corporate body that may reside anywhere in the world
  • Minimum number of directors – One (1), Cypriot or foreign individuals or 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
  • Bearer shares are not permitted

Annual Requirements

  • Annual return and annual statutory meetings are required
  • Statutory accounting is required
  • Audited Financial Statements required
  • Annual company registrar levy is applicable at €350
  • Annual tax return – Tax resident companies have to submit an annual tax return. Non-resident Companies are exempt from this requirement

Incorporation Requirements

FiduField requires that a standard questionnaire is completed and signed by the applicant for the incorporation of a Cyprus company.