Register Your Company
Following article presents the various types of company formation in Cyprus, its characteristics and tax advantages.
Register your company - Corporate services - The strongest pillar of the Cyprus economy
To register a company in Cyprus is relatively an easy procedure which doesn’t require considerable time, especially if you have the guidance and assistance of a local service provider.
The law regulating the company formation activities is generally the COMPANIES ACT (2003)
The legal forms of the registered entities are LLC, OJSC (open joint-stock company) or a partnership which can either be general or limited.
What are the main characteristics of a LLC company?
- There can be at least 1 founder and maximum 50 shareholders
- The ownership shall be 100 % foreign
- The capital cannot easily be transferred as it is divided in to shares
- The shareholders’ liability is determined and limited by the size of deposits
- The legal entity is controlled and manages by the board of directors
- A local secretary must definitely be appointed
What are the main characteristics of an open joint-stock company?
- There is no maximum number of shareholders, it is unrestricted
- The shares can be listed in the Cyprus Stock Exchange and can freely be transferred.
- Once established there is no requirement to have a start capital
What are the main characteristics of a partnership?
- A partnership can either be general or limited.
- A full partnership entails a presence pf 2 shareholder but not more than 20. Each partner is separately liable with all the other partners for the debts and obligations of the partnership that arise while he/she is a partner.
- The partners of a limited partnership on the other hand are not liable for the debts and obligations of the partnership beyond the amount they have contributed.
A limited partnership may have a share capital and be limited by shares.
- The partnership must be registered within one month in the Register of Partnership
How does the tax environment look like in Cyprus?
Company formation goes always hand in hand with the taxation system of a country which plays a major role once choosing a jurisdiction to incorporate your business.
- Corporation tax is among the lowest rates in Europe which lays at the level of 12,5 %
- Cyprus does not have any withholding tax on dividends, interests, and royalties paid to non-residents of Cyprus. In case of royalties earned on rights used within Cyprus, then they are are subject to Withholding tax of 10%
To register, form, build, start or institute a new Cyprus company or shelf company or get advise regarding the tax rates that applies for your case navigate through our portal and you'll find a useful selection of lawyers that can assist you from start to end in the whole process of company registration in Cyprus. Either you are interested in a public or private company, company restricted by shares, company insufficient by assurance, unlimited company or no liability company you will find a competent service provider in all major Cyprus cities.