Why establishing a company in Cyprus is still popular.
Cyprus is still popularity as a country for the registering a various types of companies – trade, IT, holdings and many others. Why is it possible, who is interested in that and what are the advantages of registering a company in Cyprus – you will find the answers to all of these questions further in this article!
What are the advantages of establishing a company in Cyprus?
There are three main and indisputable advantages of registering a company in Cyprus: low taxes, the possibility of opening a bank account (especially important in terms of deoffshorization and for citizens of the CIS), as well as ease of use.
Cyprus is known as jurisdiction with one of the lowest income taxes in Europe – only 12.5% of the net income tax – and the absence of a dividend tax on beneficial owners (also known as repatriation tax). But there are even tax advantages in Cyprus – there are a number of different tax exemptions in Cyprus, such as preferential taxation of income from intellectual property (IP Box), deduction on conditional interest on new capital (NID), etc. Such taxation will be especially interesting for IT companies and great for registering holdings.
The remaining benefits of registering a company in Cyprus include:
- Many tax exemptions for investment and holding companies.
- No capital gain tax on the sale of companies, stocks or assets in Cyprus.
- Double tax treaties have been concluded with 55 countries, including the UK, Russia, USA, Canada, China, India and many others.
- Ability to open a local account (company and account in one jurisdiction).
- Fast registration of the company – within 10-15 days after application.
- Access to EU trade agreements – as a member of the European Union, Cyprus enjoys all of the EU agreements and rules, including the free movement of capital.
- Relatively inexpensive maintaining.
- The ability of a quality settlement of corporate relations between the owners of companies.
Why to establish a company in Cyprus?
First of all, establishing a company in Cyprus will be interesting to those who plan to work on the European market and cooperate with any European counterparties – through a company in Cyprus, you can transport goods throughout the EU duty free.
Also, establishing a company in Cyprus will suit to businessmen who plan revenues from any foreign branches and subsidiaries – i.e. to register a holding. This is because such income is taxed at a zero rate.
No less relevant it will be for high-tech and IT companies. Such companies can receive preferential taxation of profits from intellectual property – the total income tax rate can be reduced to 2.5%.
Convenience of using Cyprus company
Companies have always been an important tool for doing business, so the convenience and ease of use of companies are an important component in choosing a country for doing business.
The development of outsourcing in the field of audit, accounting, financial and other services, good development of telecommunications, the availability of qualified personnel, well developed legislation on all issues – this is an incomplete list of the benefits of Cyprus in terms of business services. This allows you not to keep the staff of additional employees, and if necessary to hire third-party specialists, which will help to significantly reduce the time and resources for the maintenance of company.
One of the official languages of Cyprus is English, which is well known to any modern specialist. Thus, establishing a company in Cyprus will avoid the language barrier, as well as the cost of translations when submitting applications for banking and other business operations, since English is the business language of Cyprus and all documentation is also in English.
To sum up, we can say that establishing a company in Cyprus has many advantages. Based on many years of experience with this country, SBSB will be happy to help you in establishing a company in this jurisdiction!