Why is Cyprus still popular for incorporation of companies?
Advantages of company registration in Cyprus
There are three main and indisputable advantages: lоw taxes, the possibility of opening the bank account (especially important in terms of deoffshorization and for CIS citizens), and also it is ease of use for business.
Cyprus has one of the lowest corporate income tax rate in Europe - only 12.5% - and the absence of a withholding tax on dividends. But tax advantages of Cyprus do not end there - there are number of different tax incentives in Cyprus, such as preferential taxation of income from intellectual property (IP Box), notional interest deduction (NID) from new capital, etc. Such taxation should be really interesting for IT companies and suitable for the registration of holding companies/
Other benefits of company registration in Cyprus:
- Many tax incentives for investment and holding companies.
- Absence of сapital gain tax during the sale of companies, shares or assets in Cyprus.
- Cyprus offers a big number of double tax treaties for the avoidance of double taxation - 55 countries, including Great Britain, Russian Federation, USA, Canada, China, India and many others.
- Possibility of opening the local bank account (company and account in one jurisdiction).
- The quick incorporation of company – within 10-15 days after submission of application.
- Access to trade agreements of the EU – Being the member of the European Union, Cyprus has access to all agreements and rules of the EU, including (in particular) the freedom of moving of capital.
- Low costs of company maintenance.
- The possibility to regulate and formalize the relationships between the owners of companies in almost free manner.
Why register a company in Cyprus?
First of all, the incorporation of company in Cyprus will be interesting for those, who are planning to work in the European market and cooperate with any European counteragents (or clients) – through company in Cyprus the goods can be transported free of charge within all territory of the EU.
In addition, the incorporation of company in Cyprus will be interested for businessmen, who are planning to receive incomes from any foreign branches and subsidiaries - i.e. to register a holding. This is because such income is taxed at a zero rate on Cyprus.
No less important will be the registration of a company in Cyprus for high-tech and IT companies. Such companies can receive preferential taxation of profits from intellectual property objects - the total corporate income tax rate can be reduced to 2.5%.
How ease the use of companies in Cyprus can be?
Companies are always being the important tools for conducting a business. So the convenience and simplicity in the use of companies are the important factors to choice the jurisdiction for company incorporation.
Well-developed area of audit, accounting, financial and other services, fast telecommunications, the availability of qualified personnel, experience in all legislative matters - this is an incomplete list of the benefits of Cyprus in terms of service of business. This allows you not to keep large staff of local specialists – you could just hire third-party specialists when needed. This provide an opportunity to significantly reduce the time and resources for the maintenance of companies in Cyprus.
One of the official languages of Cyprus is English, which is well known to any modern specialist. That’s why the registration of company in Cyprus also allows to avoid the language barrier, and save money on translations of documents and facilitate all banking and other business operations.
As the conclusions, you could find that incorporation of company in Cyprus has many advantages. Based on many years of experience with this country, SBSB will be happy to help you set up your business in Cyprus!