Offshore Company in Cyprus
Get help Incorporating your Offshore Company in Cyprus with our Team of Expert Lawyers.
Get help Incorporating your Offshore Company in Cyprus with our Team of Expert Lawyers.
Beginning the process of setting up an offshore company in Cyprus requires a grasp of what it entails. Essentially, an offshore company is a legal entity established in a foreign jurisdiction like Cyprus, offering various financial, legal, and tax advantages to business owners.
This concept is well-established, evidenced by the significant number of registered companies in Cyprus—198,863 as of 2023, according to data from the Department of Registrar of Companies and Official Receiver. Many of these entities are offshore companies, highlighting Cyprus’s popularity as a preferred business destination.
While Cyprus presents numerous advantages for offshore companies, cost remains a critical consideration for businesses. Fortunately, the expenses associated with offshore company formation in Cyprus are highly competitive compared to other jurisdictions.
Here’s a detailed breakdown of the costs involved:
1. Finding a lawyer
Under Cyprus law, only lawyers accredited by the Cyprus Bar Association possess the authority to draft and authenticate the Memorandum, Articles of Association of a company, and the HE1 form.
We, at Lexidy, can help you with the process of company formation in Cypus. Just contact us now so we can expore your case for free.
2. Applying for a company name at the registrar of companies (RCOR)
Businesses must file an application for company name approval with the Registrar of Companies and Official Receiver in Cyprus. This can be done directly by the applicants or indirectly through a lawyer or service provider.
However, it’s worth noting that as a customary practice, legal advisors in Cyprus often keep a selection of “shelf names” – company names already sanctioned by the Registrar. These names are provided to clients who prioritize speed over specific name selection. This allows applicants to secure an approved company name promptly.
3. Submission of all relevant document to the RCOR
The involvement of a lawyer or service provider is essential in preparing the necessary forms and facilitating the opening of a bank account based on the applicant’s collected information.
Documents needed from the applicant include:
Forms required by the Registrar include:
All relevant information and forms can be accessed on the Registrar of Companies website.
4. Incorporation of the company by RCOR
After the submission of the application package to the Registrar along with the requisite fees, a process is initiated. Barring any issues, this process culminates in the incorporation of the company, issuance of its certificate of incorporation, and provision of a certified copy of its Memorandum and Articles of Association.
5. Company registration with the tax department and opening of a bank account where necessary
All companies are required to register with the Tax Department to obtain a tax identification number and a VAT registration number, as well as with the Social Insurance Services.
Employers are obligated to contribute to various funds (including Social Insurance, Annual Holidays with Pay, Redundancy, Human Resource Development, and Social Cohesion) for each employee earning at least €200 per week or €700 per month. Contributions, covering both the employer and employee shares, are paid monthly in arrears within one month from the end of each contribution month.
To register as an employer, the application form can be submitted electronically through the Point of Single Contact (PSC) (www.businessincyprus.gov.cy) Cyprus portal or physically to a District Social Insurance Office or Citizens Service Centre. Contact details are available in the relevant documents.
The application should include the following certificates:
Cyprus has one of the lowest corporate tax rates in Europe, and it’s one of the most attractive reason for foreigners to open their company in Cyprus.
Cyprus applies a corporate income tax rate of 12.5%, while dividend tax stands at 0%. Additional taxes in Cyprus include capital duty, social security contributions, stamp duty, transfer tax, and real property tax.
The standard VAT rate in Cyprus is 19%, with reduced rates of 8% and 5% applicable to certain goods and services. Additionally, some items are subject to a zero VAT rate. To be required to register for VAT, a company must achieve a minimum annual turnover of 15,600 EUR (or 10,251 EUR for acquiring EU goods).
Foreign investors have the possibility of setting up holding companies in Cyprus – one of the best tax minimization solutions in this country.
Our team of experts specializing in company formation in Cyprus is proficient in guiding you through the intricacies of taxation regulations in the country.
Deciding on the right type of company for your business can be challenging, but our experienced team of lawyers can help guide you through the process and ensure that your company formation in Cyprus is successful.
If you’re ready to start your business journey in Cyprus or have any questions about company formation in Cyprus, please don’t hesitate to contact us. Our team of lawyers is ready to assist you and provide the legal support you need to succeed.
Don’t try to go through the Company Formation process on your own. Seek the help of an experienced corporate lawyer to increase your chances of success and make the process as smooth and stress-free as possible.
A lawyer can assist you with Offshore company formation in Cyprus in several ways. Here are some examples:
Choosing the right business structure: A lawyer can help you determine the appropriate business structure for starting a company in Cyprus, such as a limited liability company, a sole proprietorship, or a partnership, based on your needs and goals.
Registering your company: A lawyer can guide you through the process of registering your company with the relevant authorities in Cyprus, such as the Commercial Registry or the Tax Office.
Drafting legal documents: A lawyer can draft legal documents for your company formation in Cyprus, such as articles of association, shareholder agreements, and employment contracts.
Compliance: A lawyer can advise you on legal requirements and regulations applicable to your business in Cyprus, such as labor laws, data protection laws, and tax laws, and help you comply with them.
Representation: A lawyer can represent you in negotiations with suppliers, customers, and other parties, as well as in legal disputes and litigation.
In short, a lawyer can provide valuable legal advice and support to ensure that your company formation in Cyprus is successful and compliant with local laws and regulations.
If you’re interested in starting a company in Cyprus or need assistance with Offshore company formation in Cyprus, we’re here to help. Contact us today to schedule a free consultation with one of our experienced lawyers and learn how we can assist you with your business needs.
Opening a company in Cyprus can offer a strategic location at the crossroads of Europe, Africa, and the Americas, making it an attractive option for companies looking to expand their operations globally. Additionally, Cyprus offers a stable economy, a highly skilled workforce, a competitive tax system, and a supportive business environment, making it an excellent choice for entrepreneurs and businesses seeking growth and success.
Experience the rich Cypriot culture.
Explore Europe without visa restrictions.
Cyrpus has a stable and growing economy
Taste world-renowned Cypriot food and wine.
Cost of living is lower compared to other European countries.
Access to high-quality healthcare facilities and services.
Cyprus has a highly skilled and multilingual workforce
a variety of financing options available for businesses of all sizes
Certainly! Cyprus warmly welcomes foreign investors across diverse business sectors. The investment legislation permits foreigners to establish the same types of legal entities as local investors.
Indeed, a local registered office is a requisite for a company incorporated in Cyprus, where the incorporation documents must be maintained. Our Cyprus company formation specialists provide tailored virtual office packages, including a local address, to accommodate businessmen’s needs.
The process can be segmented as follows:
An important advantage is that all paperwork can be submitted electronically to the Cyprus Trade Register.
The tax registration process is an integral part of the business opening procedure in Cyprus, completed concurrently with the company incorporation. The tax identification number is issued alongside the Certificate of Registration. However, VAT registration necessitates a separate procedure as it’s not obligatory initially.
VAT registration becomes mandatory once a company engaged in distance sales in Cyprus exceeds the 35,000 euros threshold. Additionally, companies conducting trade within the EU can obtain EORI numbers based on their VAT registration, streamlining trading processes.
Our Cyprus company formation experts offer comprehensive guidance on obtaining VAT and EORI numbers, vital steps in launching a business in Cyprus. We provide assistance throughout these crucial procedures.
Owning a company in Cyprus offers the advantage of accessing a highly educated, predominantly English-speaking workforce. Employment contracts can be fixed or indefinite, and various benefits are provided to employees. Before hiring foreign staff, companies must meet specific conditions, and foreign employees require a residency permit. EU citizens must register for taxes. Employment disputes are regulated by the Industrial Relations Code.
For a private limited liability company in Cyprus, there are no obligatory minimum share capital requirements. However, our company registration experts suggest an initial capital deposit of around 1,000 EUR. On the other hand, a public limited liability company mandates a minimum share capital of no less than 25,629 EUR.
Cyprus imposes a corporate income tax rate of 12.5%, with a 0% dividend tax. Other taxes in Cyprus encompass capital duty, social security contributions, stamp duty, transfer tax, and real property tax. Our Cyprus company formation specialists are well-equipped to assist you in navigating and adhering to the taxation regulations in this jurisdiction.
For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful Company Formation Process. We want to help you achieve your goals and dreams, whether it’s Creating a Company in Cyprus or simply an investment.