Cyprus - European Union Member
SYNOPSIS: Independent sovereign state having gained independence from the United Kingdom in 1960. The Turkish invasion in 1974 created a seperate Turkish controlled territory called 'North Cyprus' but it is not recognised by the United Nations or the European Union. This text refers to 'Greek' Cyprus which is a full member of the European Union and enjoys a favourable tax treaty network with Eastern Europe and very favourable corporate tax rates. The jurisdiction also has one of the Worlds largest merchant fleets
LOCATION: South East of Greece and north of Africa. Size 3,572 sq. miles. Population 700,000 |
RELATIONSHIP WITH THE UK: Former British Colony but now a full European Union Member with very close relations with both Greece and the United Kingdom. Tensions can flare up occasionally due to UK maintenance of two 'Sovereign' military bases on the Island
ADVANTAGES OF A CYPRIOT COMPANY
The key advantage of Cyprus is that it enjoys a universal corporate tax rate of only 10% and further allows dividends to be paid out without withholding taxes. The jurisdiction also enjoys a very favourable double taxation treaty network with Eastern Europe which has made a leading investment centre for those investing into Eastern Europe and also for Russians wishing to invest into the West/EU.
Benefits
- A full member of the European Union
- English the language of business and commerce
- Favourable tax treaty benefits for UK citizens/retirees
- A universal 10% corporate tax rate
- Corporate Law based upon that of England
- Trusts recognised
- Excellent communication
- Irish/Cypriot Tax Treaty of 1973 allows for very favourable treatment of royalties, dividends and interest and further gives Cypriot companies access to Ireland's very extensive tax treaty network with Western countries and in particular the United States
- Many professionals have trained in the UK
- Many UK banks have a local presence
- Low crime rates
TAXATION
As stated, Cyprus has a universal corporate tax rate of only 10% which is even lower than that of Ireland with its 12.5% corporate tax rate. However, for obvious reasons, a territory such as Cyprus cannot compete with Ireland for larger more sophisticated tax planning schemes
HOW TO INCORPORATE A CYPRIOT COMPANY
The formation procedure in Cyprus adheres to standard common law practice. In most cases, a company will be formed on the instructions of a client through the use of the registered agent as the initial incorporator. The governing statutes are known as the memorandum and articles of association. In most cases 'nominee' directors will be maintained to ensure confidentiality. Remember, a register of members must be maintained at the company's registered office in the Nicosia. 'Directors', (nominee or not) arrange for the issuance of shares and take all other normal board decisions.
CORPORATE REQUIREMENTS
Name: The name of the corporation may be in Greek or English. It must contain the word(s): Limited or Public Limited Company
Capital: The authorised share capital will normally be expressed in Euros and can have as little as €2.00 in issued shares. Authorised share capital is normally at least €1,000.00 but often much more.
Registered office/agent: All companies incorporated in Cyprus must maintain both a registered office and agent in the jurisdiction.
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Amendments: Amendments are made in accordance with the terms and conditions outlined in the memorandum and articles of association. In most cases, either the board of directors or shareholders must take important decisions.
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Banking Confidentiality = 9/10
Banking Facilities = 10/10 Excellent
Legal System = British Common Law
Tax Treaty Network = 9/10 Excellent for Eastern Europe
Development = 8/10
Reputation = 9/10
Efficiency = 8/10
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General Rating = 9/10 