Cyprus is a member of the European Union and is situated in the Eastern Mediterranean, lying at the hub of 3 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 CompanyA 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 CompanyA tax resident company is a company whose management and control is exercised in Cyprus. Hence the majority of directors must be in Cyprus. It pays 10% tax on its worldwide business profits (5% on interest income, 0% on dividend income). It can claim relief under the Cyprus double tax treaty network.
Non-Resident CompanyA 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 10%.
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. Non-resident beneficial owners must disclose their residential address and occupation through the submission of a Statistical Declaration form to the Central Bank of Cyprus
• Double tax treaties currently 34 covering 40 countries, including India, UK, France, Mauritius, Austria, Canada, China, Russia, and United States
• Shelf companies are available
• Money laundering legislation is in existence
• Tax resident Company - Tax at 10% on Business Profits (5% on interests, 0% on dividends), relief under the Cyprus Double Tax Treaty network. It is required that the majority of directors are based in Cyprus
• Non-resident Company - Exempt from tax. Cannot claim relief under the Cyprus double tax treaty network. Majority of directors must be outside Cyprus
• 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
• 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 return and annual statutory meetings are required.
• Statutory accounting is required.
• Annual government registration fee is not applicable.
• Annual tax return – Tax resident companies have to submit an annual tax return. Non-resident Companies are exempt from this requirement.
Vintelli requires that a standard questionnaire is completed and signed by the applicant for the incorporation of the Cyprus company. As part of our due diligence review we require the following documents for all the beneficial owners and directors of the company to be incorporated:
• bank reference letter
• certified copy of passport
• copy of utility bill showing current residential address
