Basic Information on Cyprus Companies
The Cyprus Companies Law provides for a minimum of one share and at least one registered shareholder. The shareholder can be a resident or non-resident, individual or corporation.
The share capital for a Cyprus Company is usually €1,000 although it can be lower or higher.
The main documents that are required for the registration of a Company by a non-resident and the opening of a bank account are the following:
a. Copy of passport or full set of corporate documents of shareholder or UBO.
b. Full details of overseas address.
c. Curriculum Vitae.
d. Bank reference from an overseas bank.
At least one director is necessary. The directors may be local Cypriot individuals or foreigners. It is generally advisable to appoint local directors if one wishes to have effective management and control in Cyprus. A corporate entity may act as director.
An individual or a secretarial company must be appointed.
The registered office of the company must be in Cyprus. The registered office address is the official address of the company where the statutory books, registers, and the seal of the company should be kept. Summons and writs are also served at the registered office address.
Cyprus Companies pay 12.5% corporation tax on their net profits. Net profit is arrived at after deduction of all the business expenses incurred wholly and exclusively for the production of profit. Certain income is exempted from taxes (e.g. Profit on dealing in securities, dividends (conditions apply) etc.)
No withholding tax is payable on dividends, interest or royalties to non-resident individuals or corporations.
A Cyprus Company needs to be audited by a Cypriot firm of auditors every year in accordance with the International Accounting and Auditing Standards.
Financial and tax statements are submitted to the Inland Revenue. The financial statements are also submitted to the Registrar of companies.