Company formation and management of a Limited in Cyprus
A Cyprus Limited is ideal for entrepreneurs with a desire for legal security, stability, tax savings, anonymity and flexibility in a highly reliable and reputable environment. From an annual profit of 50.000,- EUR a Cyprus Limited already pays off. A Cyprus Limited is ideally suited as a holding company of a German GmbH/UG or as an operationally active company in which individual business processes are outsourced or with which own assets are managed. The merger of a German GmbH (with subsequent deletion of the same) with a Cypriot Limited can also be attractive, since the liquidation phase of the GmbH is omitted and the Cypriot Limited becomes the recognized legal successor of the German GmbH.
The main advantages:
-12.5% corporate income tax (for some industries only 2.5%)
-notrade tax
-Dividends of foreign subsidiaries flow tax-free to the Cypriot holding company
-extensivedeductibility of business expenses (flights, entertainment, office supplies, professional clothing, overnight stays)
-Noadvance tax payments required, thus higher liquidity
-fullanonymity possible through the trustee service
-bank account (Barclays, Hellenic Bank, Societe Generale, RIETUMU, Valartis) with credit card and online banking and European deposit guarantee
-only1.000,- EUR minimum share capital (no deposit required)
-simple administration of a Cyprus limited, low running costs and time investment
Procedure:
After placing the order and sending a notarized copy of identity card and passport and current consumption bill (electricity, water, etc.), the company formation takes about 7 working days from receipt of payment and availability of all documents. Bank account opening afterwards takes about another week depending on the bank, VAT registration 2 weeks from application. Cypriot shelf companies are immediately available and can be taken over immediately.
Cyprus as an international trade center.
Cyprus has been an international hub for more than 2000 years and is constantly expanding the incentives for foreign investors and entrepreneurs to settle in Cyprus. Cyprus convinces with the lowest tax rates in Europe in combination with a business-friendly fiscal administration and is the first choice for a company formation abroad for companies of any size.
There are double taxation agreements with over 50 countries.
The company location Cyprus convinces with high legal security, business-friendly authorities and advantageous tax laws.
Avoid dangerous mistakes when setting up a company in Cyprus:
Unfortunately, there are also pitfalls in the formation of a limited company in Cyprus, which can, however, be easily avoided. We regularly receive inquiries from company owners who have commissioned start-ups from dubious providers abroad, have been wrongly advised or have waited months for services – often with fatal economic consequences. The following 5 tips will keep you on the safe side and save you a lot of learning money:
Tip 1: Beware of incorporation agencies based outside Cyprus.
An optimal and legally secure support of a Cypriot limited company can always only be provided by a local tax advisor on site in Cyprus. Unfortunately, there are many black sheep on the Internet who offer company formations in numerous jurisdictions and do not have the necessary local contacts and knowledge of the legal material in Cyprus. Clients who have contracted a firm with such providers are often left with no choice but to start a new firm, because consulting errors have caused damage that cannot be repaired later.
