Moving the office/business to Cyprus
Sun, sea, sand, flourishing business…So, let’s pack our things and go to Cyprus to enjoy time and make money for life of joy. Only from tourism this country gets 20% of GDP! More than that, its industry and service sector for neighboring countries is rapidly growing. We can help you with movement not only for permanent residence, but also with BUSINESS MOVE in the shortest possible time!
Cyprus has beneficial geographical location on the crossing of tracks leading to Europe, Asia and Africa. High standards of living, globally recognized legal and banking systems have made Cyprus an important international business center with a first-rate telecommunications system.
Cyprus is an ideal place for prosperity of your business. Cost movement and daily expenses are very low. The island enjoys Mediterranean climate, with temperatures in summer from 25 to 40 °C, and in winter from 5 to 20 °C, clean air, sea and view on mountains covered with pinewood. There should be no doubts to move, the only question is how to spend time and money there.
Legal system is based on the British model. Independent Cyprus builds its own case law system. Greek-Cypriots get legal education mostly in Greece and Great Britain, and then are certified in Cyprus. As regards civil law, Cyprus has “inherited” the trust estate right from England.
The policy of Cyprus government is aimed at transforming the country into trading, financial and touristic center of the Eastern Mediterranean region. One of the most important elements of economical policy is attraction of foreign capital investment to Cyprus. Since 1975 Cyprus has been steadily holding the position of one of the global business and financial centers.
Country has no unified code for regulation of foreign investments; however, there is a variety of legal acts regulating particular aspects of activities of foreign and local businessmen. This is, first of all, Chapter 10 of Statute Laws of Cyprus (1959). – Law on judicial decisions for foreign persons; Chapter 105 of the mentioned law: Law on acquisition of real property by foreign persons (with further amendments); Law on hotels and tourist organizations (1969) with further amendments; Law on free zones (1975); Chapter 199 of Statute Laws – Law on currency control with further amendments; Law on income tax (1961) with numerous further amendments; Law on customs and fees (1967) with further amendments; Law on customs duties and fees (1978) with numerous further amendments; Law on Central Bank of Cyprus (1963) with further amendments; Law on capital gain tax (1980).
Besides the above-mentioned advantages, it is worth mentioning the following facts that make Cyprus even more attractive in the eyes of potential investors:
- The agreement between the Russian Federation and the Republic of Cyprus on the facilitation of issuance of visas to the citizens of the Russian Federation for the term of 3 months is concluded. Also the Agreement between the Government of the Russian Federation and the Government of the Republic of Cyprus on visa-free trips on diplomatic and service passports dd. 08.06.2005 is in force).
- Cyprus is the full member of the EU since 2004.
- Cyprus is one of the primary places by simplicity of conducting business.
- Legislation of Cyprus is based on the legal system of Great Britain and recognized as the most reliable in the world (British model).
- Reliable banking system.
- Stable prices.
- The lowest crime rate in Europe.
- Safe legal system for property owners.
- Friendly and warmly welcoming local community.
- Developed infrastructure – airports with direct flights, sea ports and modern highways.
- And, of course, Cyprus is a zone of ecological well-being.
A Few words about taxes
Nowadays having a company in Cyprus is more than profitable. Numerous factors encourage this. One of these factors is a wide list of countries with which the agreements on avoidance of double taxation (around 50 ratified agreements) are concluded. Besides, the corporate tax is the same for everyone, and is only 12,5%. There are no taxes on income from dividends regardless its source, 0% tax is also applied to royalty paid by non-residents of Cyprus. Payments received outside Cyprus are not liable for taxes. Tax is not withheld from overseas payments of interest. Capital contributions by companies-residents of Cyprus are not liable for taxation. EU directive on payment of interest and royalty, as well as other EU directives can also be applied. For more information about taxes in Cyprus, please, read HERE.
There are no strict rules for authorization of capital on Cyprus. Well-developed infrastructure is another advantage, while incorporation procedures and low expenses on office maintenance along with other factors acknowledge the convenience of business operations on Cyprus.
There exist several ways of setting up companies on Cyprus:
- private company limited by shares
- exempt private company
- public company limited by shares
- company limited by guarantee
- branch of overseas company
- general partnership
- limited partnership
- sole proprietorship
What you should know while setting up a company in Cyprus:
- Opening capital: There are no requirements for minimal amount of registered capital.
- Shareholders: Minimal shareholders amount – 1. Both individuals and legal entities may act as shareholders.
- Chief executive: According to the Article 170 provisions of the Cyprus Companies Act, all privately-held companies must have at least 1 chief executive who can be either an individual or a legal entity. The chief executive has right to make decisions on all issues and regulate business of the company.
- Secretary: Individual and legal entities can work as secretaries. At least one person is required.
- Office: According to the Article 102 provisions of the Cyprus Companies Act, all enterprises must have a registered office on the territory of Republic, where all letters and notifications are directed. REGISTERED OFFICE is a legal address of the company in Cyprus. Corporate documents and stamp should be stored on this address.
- Fiscal accounting: All Cyprus companies after the setting up should be registered in tax authorities. Our professional team will easily deal with this task.
- Financial accounting: According to the provisions of Cyprus Companies Act (Chapter 113), every Cyprus company has to assign a Certified Auditor who must carry out the audit of the company, prepare annual Financial Statements and tax return.
CYPRUS AND RUSSIA
Since 2008, dividends preferential taxation is applied in Russia if their recipients are Russian organizations having related companies with their long-term participation located in Russia and abroad.
In February 2015 TASS had a meeting with president of the Republic of Cyprus Nicos Anastasiades. During the press-conference the president held a discussion of Cyprus and Russia, emphasizing the fact that about 30,000 Russian residents live on the Island. The Cypriots love the Russian and have the greatest respect for them.
“Recently Russian investment started to return to Cyprus, and their amount is constantly growing”, – told the president of the Republic of Cyprus Nicos Anastasiades on the press-conference in TASS, – “Although the EU actions were disappointing for Russia and led to worsening of relations between EU and Russian Federation, the Russians don`t lose interest in our country. Alternatively, the engagement is growing”.
In the words of Nicos Anastasiades, not just fertile climate of Cyprus and their inhabitants’ hospitality attract Russian residents. Quality legal and financial services along with other services attract Russians as well.
Company on Cyprus provides you with excellent reputation in Mediterranean country with reliable jurisdiction, seamless establishing of new business relations, right to set up official representation offices and branch companies abroad, easier procedures for capital transfer, loyal and flexible taxation system, in many cases no restrictions on business activities, requirements for financial standing and authorized fund amount.
Besides, the citizens often can participate in business boosting programs that give an access to cheap resources and investment.