| Company Formation
Some of the 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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the Application Form
other jurisdictions.
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