Company Formation

Advantages of incorporating in Cyprus

• Major Tax Incentives
  • Very Extensive Network of double taxation treaties (double tax treaties with 40 countries). Cyprus has concluded a number of treaties with most of the Western European, Middle Eastern, and Eastern European counties for the avoidance of double-taxation on profits, dividends, interest, and royalties paid from a treaty country to Cyprus . Of particular significance are the treaties with all the countries of the Eastern Europe, as none of such Treaties contains any anti-avoidance provisions, and thus, Cyprus offshore entities may benefit from their application. In particular its treaties with eastern European and former Soviet Union states, which are second to none, make it a very attractive place for investing into these now liberated economies.
  • IBCs as well as international branches managed and controlled from Cyprus are taxed at only 10% of their profits. Companies registered before 2002 are taxed at 4.25% until 31 December 2005.
  • IBCs and International business branches that are managed and controlled from abroad and international business partnerships are totally exempt from corporation or income tax.
  • No withholding tax on dividend, No capital gains tax, No estate duty, No tax on sales of shares, e.t.c.
  • Under current Customs and Excise laws, offshore companies and their employees may purchase duty free office equipment, household hardware and motor vehicles, e.t.c.
• Major Non-Tax Incentives
  • Excellent Company for International trading operations. The Cyprus Offshore Company is viewed as one of the best international trading companies. This has been the result of (i) Cyprus' strategic location in the cross roads of Europe, Asia and the Middle East, (ii) the excellent trading infrastructure in the form of ports, postal services, transportation facilities, telecommunications, banking and professional services, (iii) highly qualified managerial, clerical and technical staff available, etc. and (iv) the anti-avoidance provisions which exist in some of the Treaties do not exclude Cyprus Offshore Companies from the application of the provisions relating to business profits to the extent that the company does not maintain a permanent establishment in the other country.
  • Strong Code of Confidentiality. The island has a strong code of confidentiality which may well be evidenced by the fact that the Central Bank of Cyprus keeps the names of the beneficial owners of the shares in a company, strictly confidential and, in the presence of nominee shareholders, these names are not recorded in the public register.
  • No exchange control restrictions.
  • Quick and easy to register or off-the-shelf.
  • Low set up and running costs.
  • Modern and efficient legal, accounting and banking services based on English practices.
  • Democratic country with a free market economy.
  • Full member of the European Union as from 01 May 2004.
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