We cover the full range of your needs, from registering
a company to obtaining licenses and opening bank accounts.
Registration and support
of foreign companies
in Cyprus
Request a Commercial Proposal
Low corporate tax rate – 12.5%
Dividends – 0%
Stable banking system and high level of legal protection
High standard of living and developed infrastructure
Who are we?
LFT Advisors provides international business planning and structuring services. Our team of lawyers, accountants, auditors, and tax consultants helps entrepreneurs effectively manage international projects, ensuring a high level of service and expert support at every stage.
What do we offer?
We provide all the services necessary for business in one place. We work on a one-stop-shop principle, which means you don’t need to engage multiple contractors or incur additional costs. We cover the full range of your needs, from company registration to obtaining licenses and opening bank accounts.
Why choose us?
Every step we take is made with respect and care for your money, reputation, and ambitions. We don’t offer generic solutions – we create personalized tools tailored to your business’s specific tasks and needs.
Collaboration Process
- Initial Consultation:
At this stage, we discuss your business goals and needs to identify the necessary services. - Strategy Development:
We analyze your current situation and develop an individualized action plan aimed at achieving your goals. - Implementation:
We handle all aspects of the process – from company registration to opening bank accounts, licensing, and taxation. - Support and Follow-up:
After a successful launch, we continue to work with you, providing ongoing support, updates, and consultations as needed. - Evaluation of Results:
We regularly assess the results achieved and adjust the strategy as necessary for maximum efficiency in achieving your business objectives.
Request a Commercial Proposal
Advantages of Registering
a business in Cyprus
Cyprus is known for its favorable tax climate and the simplicity of company registration, making it one of the most attractive jurisdictions for international business. Opening a company in Cyprus can be an excellent solution for entrepreneurs looking to optimize their expenses and protect their assets. In this article, we will explore the advantages of registering a company in Cyprus, the step-by-step procedure for setting up, and the key tax aspects to consider.
Favorable Tax Regime
Cyprus offers one of the lowest corporate tax rates in Europe – 12.5%. Moreover, there is no tax on dividends for non-residents, making this jurisdiction particularly beneficial for business owners.
Double Taxation Treaties
Cyprus has signed over 60 double taxation agreements with various countries, allowing international companies to significantly reduce their tax burden.
Ease of Company Management
The accounting and reporting requirements in Cyprus are relatively simple and straightforward, enabling entrepreneurs to focus on business development rather than bureaucratic processes.
International Recognition
As a member of the EU, Cyprus provides access to the European market and the opportunity to operate under stable legislation.
Asset Protection
Cyprus offers effective asset protection tools, such as trusts, which can be used for capital protection and inheritance.
Why is it profitable for businesses to work here?
Cyprus attracts businesses due to its low corporate tax rate of 12.5%, one of the lowest in the EU. The country offers dividend incentives, no capital gains tax and a flexible system of international tax planning thanks to a wide network of double taxation agreements.
Cyprus also has a stable legal and financial system based on British law, which provides reliable asset protection and favorable conditions for international companies.
Request a Commercial Proposal
Procedure for opening a Company in Cyprus
Register a company in Cyprus typically takes about 10-15 working days and includes several key steps. It is worth noting that it is not possible to register a company in Cyprus online.
- Choosing a Company Name
The name must be unique and comply with the requirements of the Cyprus register of legal entities. It needs to be reserved by submitting an application to the registrar of companies cy. - Choosing the Company Structure
The most common form of company in Cyprus is a Limited Liability Company (LLC). The minimum requirements for Starting a business in Cyprus include one shareholder, one director, and one secretary. - Preparation and Submission of Founding Documents
To open a company in Cyprus, a Memorandum and Articles of Association need to be prepared, outlining the main provisions of the company’s activities. These documents are submitted to the Companies Registry along with other necessary applications. - Obtaining a Tax Identification Number (TIN)
After the company is registered, a TIN must be obtained for further interaction with the Cyprus tax authorities. - Obtaining a VAT Number
If the company plans to conduct VAT-eligible transactions or has business volumes exceeding the set threshold, it needs to register for a VAT number to correctly account for and pay value-added taxes. - Opening a Bank Account
To conduct business, the company must open a corporate bank account in a Cypriot or international bank. This process usually requires providing corporate documents and identifying the ultimate beneficiaries.
Tax Aspects of Cypriot Companies
Cyprus is known for its flexible tax system, which includes several significant advantages:
- Corporate Tax at 12.5%: This rate is one of the lowest in the EU, allowing companies operating internationally to effectively reduce their tax expenses.
- No Tax on Dividends for Non-Residents: Dividends received by non-residents of Cyprus are not taxed, making business structures through Cypriot companies particularly beneficial.
- No Capital Gains Tax: Capital gains tax is applied only to profits from the sale of real estate in Cyprus, making this jurisdiction advantageous for companies earning income from asset sales outside the country.
- Favorable Taxation of Intellectual Property Income: Cyprus offers an effective tax rate of 2.5% on profits from the use of intellectual property, making it attractive for IT companies and startups.
Legal Nuances of Registering and Managing a Cyprus Company
- Transparency of Ownership and Control: Cyprus requires disclosure of the ultimate beneficial owners in the official registry. However, this information is accessible only to competent authorities, ensuring confidentiality for the general public.
- Annual Reporting and Audit: A Cypriot company is obliged to submit annual financial reports and undergo an audit, ensuring compliance with EU legislation and increasing trust among international partners.
- Requirements for Share Capital: There is no minimum share capital requirement set by law, but entrepreneurs can usually start a business in Cyprus with a capital of 1,000 euros.
Costs of Registering and Managing a Company in Cyprus
Registration Fees
Depending on the amount of share capital, fees can range from 100 to 500 euros.
Registration Services
The cost of legal services for company registration varies from 1,500 to 5,000 euros, depending on the service provider and the scope of services required.
Annual Management Expenses
These include fees for secretarial services, accounting, reporting, and auditing, ranging from 1,000 to 2,500 euros per year.
Potential Risks and How to Prevent Them
- Changes in International Legislation: Constant changes in international tax legislation can affect the benefits of Cypriot companies. Regular consultation with tax lawyers will help adapt to these changes in time.
Opening a business in Cyprus is a strategic move for companies aiming to effectively manage their tax obligations and expand their international reach. However, success depends on the proper approach to registration and company management, including compliance with local laws and timely reporting.
Contact LFT Advisors, and we will provide full support for your business in Cyprus, from company registration to tax planning and asset management. Get in touch with us today to start your successful business in Cyprus!
