Legal Entities and types of companies in Cyprus
CYPRUS – A HISTORICAL LOCATION EVERYONE MUST SEE
The Republic of Cyprus is the third largest island in the Mediterranean Sea, having a strategically geographical position between three large continents: Europe, Asia and Africa. A vast majority of tourists choose the Republic of Cyprus as their favorite holiday destination every year, this can be attributed to the fact that the Republic of Cyprus is famous for its low lifestyle costs, friendly spirit of hospitality among locals, reasonable transit fees, Mediterranean climate, crystal clear beach waters (many of which have received accreditation), high mountains and first class hotels. Not many islands are as rich in both history and culture as the Republic of Cyprus, having been targeted by many foreign powers over the centuries, amongst them being the Phoenicians, Assyrians, Egyptians, Alexander the Great, Romans, Venetians, and even more during the colonial years.
ACCESSION OF CYPRUS TO THE EUROPEAN UNION
In May 2004, the Republic of Cyprus became a member of the European Union and since then enjoys all the benefits that such a membership offers, a fundamental benefit being the concept of the four freedoms (Freedom of movement for people, capital, services and goods). The Republic of Cyprus, prior its accession to the European Union, had already developed its international business center, offering services such as financial, investment, commercial, corporate, intellectual property matters and taxation worldwide. The number of companies in Cyprus increased since its accession to the European Union. This was also the key that aided the Republic of Cyprus to offer their high quality services to more jurisdictions.
CYPRUS AS AN INTERNATIONAL BUSINESS CENTER
Acting as an international financial and business center for many years, Cyprus invariably proves to be one of the most attractive jurisdictions for foreign investors. The Republic of Cyprus has signed double taxation treaties with over 40 countries, thereby ensuring most efficient optimization of tax planning for international businesses using diversified group structuring.
In the today’s highly taxed world, companies in Cyprus benefits from one of the lowest corporate tax rates in the European Union, at only 12.5%.
One of the most apparent advantages of opening a company in Cyprus compared to other ‘low-tax’ jurisdictions, is its well-established UK legacy of a strong professional infrastructure. The island provides an excellent choice of lawyers, accountants, auditors and other service providers perfect for forming a company in Cyprus.
Other important fact is that everyone in the professional sector in Cyprus use English as the main business language. Cypriot professional firms are highly customer orientated and try their best to suit their main clients. Therefore, it is not that uncommon if the accountant in Cyprus communicates in his customer’s mother language (Russian, Chinese, French, Spanish, etc).
Unlike other ‘tax-heavens’ Cyprus is not just about low tax rates, it is a constantly developing country, that can stand on the same level with places like Dubai, Hong Kong and other attractive jurisdictions for investors wishing to gain long-term benefit. Thanks to foreign investments, the appearance of the island had changed dramatically over the past 20 years.
Local Real Estate companies in Cyprus now not just the residential holiday houses available in any other Mediterranean country, but also interesting high-budget projects of interest for most sophisticated foreign investors, e.g. Limassol Marina, Neapolis Smart Ecocity, Venus Rock Resort, Lord Byron Towers, and many more yet in development. In addition, participation in such projects will bring the investors not only the increase in personal wealth, but may also bring an opportunity to obtain an EU Citizenship (read info on obtainment of Citizenship for investors)
To sum up, Cyprus is a truly unique place that offers undoubtedly attractive features for business and investors, found nowhere else in the world in such a combination: law tax rates, professional legacy, English as the communication language, strong foreign customer orientation, and low crime level, proximity to Europe, Africa, Middle East and Asia, constant development and many more.
The recent official ranking of Cyprus could be found here.
Why form a company in Cyprus?
- The Republics’ EU membership;
- Possessing an EU recognized a modern tax regime;
- One of the lowest corporate tax rates in Europe (12.5 %);
- The island’s IBC provides effective and high quality legal, accounting and banking services;
- The best conditions for the establishment of holding companies;
- The new scheme of providing an EU citizenship.