A Cyprus Company the Way to Low Taxes
If you need to lower your taxes, a Cyprus company is the perfect tool. It will offer you so many tax benefits that no other company does. It also gives you many legal and administrative advantages. You can operate your business from your country. There is no rule that you must have an office or employees in Cyprus. You can also get a fast bank account for your Cyprus Company in Cyprus or in any other country.
The Necessary Constituents of a Cyprus Company
In order for you to register a Cyprus company the following are necessary constituents. These are all required by the Cyprus Company Law, Cap 113:
- The Name: You must find a name for your Cyprus company. You must submit this name to the Registrar of Companies for approval. Approval of your name may take 2 to 5 days at the most. The registrar fee for approving a name is €30.
- The Capital: You must declare the capital of the company to the Registrar. Such capital you can declare in any currency. You can declare as capital one Euro upwards without limitation. You will pay a tax of 0.6% on the capital. This tax you will have to pay only once. You don`t have to pay the capital in cash. You will owe it to the company. The shares of the company you can divide into ordinary voting shares or create any other classes of shares depending on your needs.
- The Directors: Your Cyprus company must have at least one Director. You can appoint yourself Director. Or you appoint anyone else. There is no limit to the number of Directors. Any one can be director, regardless of nationality or wealth or age. The Director is the main officer of the company. He is the person who curries out and handles the business of the company. He signs all the agreements. He also signs all the documents to be filed at the Tax Office, the Vat Office and the Registrar of Companies. He has many other duties and powers. He can be replaced at any time by the Shareholders.
- The Shareholders: You must also declare the Shareholders of the company. These can by up to 50 in a Cyprus Company. They are the real owners of the company. They are the persons who will take the profits of the company in the form of dividends. They can exercise all the powers of the company if they want. The Shareholders can extend the business of the company. They can increase the capital or reduce it. They can accept new shareholders. Or they can close the company.
- The Secretary: Your company must also have a Secretary. A Cyprus Company can have many Secretaries. There is no limit. A Secretary is appointed by the Shareholders. He is required by the Cyprus Company Law. He does not participate in the decision making of the company. His duties are formal. He call the general or annual meetings. He keeps the minutes of such meetings. He signs the yearly accounts. He undertakes any duties assigned to him by the Directors. He can be replaced by the Shareholders.
- The Registered Office Address: Finally you must declare the RO address of your company to the Registrar. This is an address at which the Registrar, the Tax Office, the Vat Office, and any third parties can deliver letters, notices, warnings or legal proceedings. It is required by the Company Law to be in Cyprus. This is not the business address of the company.
For more information on the Cyprus Company, for example how to liquidate a Cyprus company, how to increase the capital, how to change the Directors, or the Shareholders, or any issues with the Tax, the VAT, the Registrar etc. you can contact our firm.
This Article was written and published by Evgenios Erotokritou, of E R Team Global Consultants Ltd. Email: eugero@cytanet.com.cy
