Cyprus is one of the most business-friendly jurisdictions in Europe. It has a competitive corporate tax rate of 12.5%, which is one of the lowest rates in the EU. Cyprus also offers generous tax exemptions for companies, such as an exemption from tax on foreign dividend income and profits from foreign permanent establishments.
In order to incorporate a company in Cyprus, you will need a local registered office, at least one shareholder, one director, and a secretary. The Memorandum and Articles of Association are the governing documents setting out the objects and regulations of the Company. These should be drafted pursuant to the Cyprus Companies Law Cap. 113 and executed by a practicing licensed advocate.
Once your company is incorporated, you will need to open a corporate bank account. Cyprus banks provide high-quality, fast electronic banking services, including 24/7 online access. They operate under EU banking standards and regulations and provide multi-currency accounts, facilitating international transactions.
In addition to the above, companies must maintain accurate records, file annual returns and prepare audited financial statements.
Key Reasons to Do Business in Cyprus
EU Membership: Gain access to the European Single Market and its benefits.
Competitive Tax Environment: Enjoy one of the lowest corporate tax rates in the EU at 12.5%.
Extensive Tax Treaty Network: Benefit from double taxation agreements with over 60 countries.
Attractive Incentives: Take advantage of various tax exemptions and incentives.
Strategic Location: Leverage Cyprus’s strategic geographic location as a gateway to Europe, Asia, and Africa.
Skilled Workforce: Access a highly educated and multilingual workforce.
Business-Friendly Environment: Benefit from a stable and transparent business environment with a supportive regulatory framework.
Investment Opportunities: Explore a wide range of investment opportunities across various sectors.
Key areas to do business in Cyprus:
Financial Services: Benefit from a well-regulated and competitive financial sector, including banking, insurance, and investment funds.
Shipping & Logistics: Leverage Cyprus’s strategic geographic location and robust maritime infrastructure.
Tourism: Capitalize on Cyprus’s renowned hospitality sector and growing tourism industry.
Real Estate: Invest in a dynamic property market with significant development potential.
Energy & Natural Resources: Explore opportunities in renewable energy, oil & gas exploration, and energy efficiency.
Technology & Innovation: Foster growth in startups, technology companies, and research & development.
Professional Services: Access a skilled workforce in legal, accounting, and consulting services.
Education: Invest in a growing education sector with a focus on international students and academic research.
If you are interested in incorporating a business in Cyprus, Mikaella Psillidou LLC can help you through each step of the process. We provide tailored tax structuring solutions, comprehensive compliance and administrative support, and residency and legal advisory services.