Cyprus is one of the most popular jurisdictions for company formation among European investors and businessmen because of the low tax regime in place for companies and resident companies. The Cyprus tax rate is the same for all companies incorporated in the jurisdiction. Companies in Cyprus pay 12.5 % corporate tax on their annual profits. There is no withholding tax applied to the payment of dividends in Cyprus and there is no wealth tax.
Cyprus company formation offers important advantages for shareholders privacy. Cyprus law protects the privacy of bank account holders, the owners of Cyprus trusts and Cyprus International Business Companies. Cyprus has also banking secrecy laws in place which protect the integrity of bank accounts in the jurisdiction. It is prohibited and punishable by law to disclose information of any Cyprus bank account.
Company legislation allows for the registration of Cyprus companies using nominee shareholders and directors other that the ultimate beneficial owners. In very rare cases and only when there is a suspicion for illegal activities (such as weapons, drugs, people trafficking) the Cyprus courts can ask the Administrator to reveal the Ultimare Beneficial Owner (UBO). Further than that, the UBOs keep their anonymity.
CYPRUS COMPANY REGISTRATION PROCESS
Cyprus limited companies may be private or public.
Private companies must:
A public company must:
An international company in Cyprus may perform a wide range of activities the most common of which are set out below: