CYPRUS

Cyprus is an island in the Mediterranean Sea located in its North-Eastern part.

Cyprus is the third largest island in the Mediterranean Sea, after Sicily and Sardinia, has the total area of 9,251 square kilometers and the length of the coastal line 782 km.

The population of the island is 700,000 people.

The official languages of Cyprus are Greek and Turkish, but the latter is practically not used.

Most of Cypriots have command of English.

The national currency of Cyprus is Cypriot pound, 1 CIP = USD 2.02

1	Advantages	A low taxation of resident companies: 10% of net profit. Off-shore branches managed and controlled from abroad and off-shore companies are completely exempt from corporate tax. Majority shareholders of off-shore companies, branches and off-shore partnerships are not subject to any additional taxation of dividends or income above the amounts paid or being paid by corporate entities. The availability of double taxation avoidance with 18 countries. A strict confidentiality code.
2	Disadvantages	The need to submit information on the beneficial owner of the company, but possible solutions are available
3	Corporate Law	Companies Decree of 1968, amendments of 1977, 1979, 1985, 1986, 1990.
4	The form of tax-free company	A tax exempted company (hereinafter referred to as the “Company”).
5	Conditions of acquiring the status of a tax exempted company in the Central Bank of Cyprus	paid in registered capital at least CIP 1,000 banking reference for the company’s beneficial owner; the information on shareholders: name, address, nationality, residence, the number of shares owned
6	Permitted activities	Any activity not prohibited by the law. A special license for banking, insurance, reinsurance and trust services is required.
7	Prohibited activities	Making transactions with Cyprus residents; ownership of real estate in Cyprus; making settlements with Cyprus residents in the local currency
8	Taxation	Non-resident companies and exempted companies are to pay 4.25% net profit tax
9	The period of registration	1 week
10	The possibility to buy a shelf company	Yes
11	The name of the Company	Should not be identical or similar to any one registered. The name should end in the word “Limited”, or “Ltd.” .
12	The documents required for the registration	Memorandum of incorporation, the Articles of Association
13	Who signs the incorporation documents?	Subscribers  whose function is only to sign the documents of incorporation and appoint the first director
14	The Company’s share capital	The minimum authorized share capital is CIP 1,000. No requirement of obligatory payment of the share capital
15	The recommended share capital	CIP 1,000 divided into 1,000 shares with face value CIP 1 per share
16	Shares	Only registered shares and bearer shares with the face value are issued
17	Shareholders: -- minimum number -- nominee shareholders -- trust ownership of shares -- distribution of shares on the incorporation	two private individuals or corporate entities permitted permitted it is necessary to subscribe minimum to two shares
8	Whether the law provides non-disclosure of the information: -- on the beneficial owner of the Company -- on banking operations	No Yes
19	Directors: -- minimum number -- ethnic origin and nationality -- status	One private individual or a corporate entity, at least one director, resident of Cyprus is recommended, to use the double taxation avoidance treaties No requirement All rights except those being within the exclusive competence of the shareholders (determined by the Articles of Association)
20	The existence in the territory of Cyprus of: -- a registered office -- a registered agent -- a local secretary	Obligatory Not obligatory Obligatory, a private individual or a legal entity
21	Meetings of: -- shareholders; -- directors	Annual meetings of shareholders are obligatory. No requirement.
22	The requirement of: -- the accounting -- preparing the annual report -- submission of the auditors’ opinion	Yes The Company submits the financial statement to the Central Bank of Cyprus and the income statement to the tax authorities of Cyprus Yes
23	The information available upon request of any third parties	Names and addresses of the secretary, directors and shareholders, the registered office, memorandum and Articles of Association, creditors’ claims
24	Documents kept in the registered office	The register of shareholders, directors and secretaries, creditors’ claims
25	Double taxation avoidance treaties	All CIS countries except Georgia, Austria, Greece, Romania, Bulgaria, Hungary, Canada, Ireland, Slovakia, Czechia, Italy, Sweden, Denmark, Kuwait, Great Britain, France, Norway, the USA, Germane, Poland, Yugoslavia, China, Malta, Syria, Belgium, Egypt, Finland
26	Currency control	None
27	Annual governmental charges	Profit tax 4.25%, annual report submission fee CIP 5