Registering a Cyprus company is fiscally beneficial. The corporate tax is 12.5%. Any income derived from dividend proceeds is generally tax exempt. Income derived from permanent establishments abroad are also generally exempt from tax. The numerous double taxation agreements that Cyprus has in place with various jurisdictions around the world offer fiscal relief to investors and shareholders. Cyprus is compliant with all EU regulations and directives and with the OECD requirements.

The Cyprus Companies Law requires that a private limited liability company must have a minimum of one share and one shareholder. The Authorised Share Capital of the company starts at €1000. There is no minimum Issued Share Capital. However, it is the norm that the Issued Share Capital of the company is at least €1000. The class of shares can be registered shares, preference shares, redeemable shares and shares with or without voting rights.

Cyprus companies must have at least one shareholder. Shareholders may be either corporate, a Cyprus resident, or a foreigner. A foreign corporate or individual shareholder is also permitted. Nominee shareholders are allowed ensuring anonymity and confidentiality. Should you opt for a nominee shareholder, upon incorporation we will issue a trust deed executed by the nominee shareholders in the favour of the beneficiary. This is a trust instrument stating the powers of the nominees. We also issue an open date share transfer agreement, so that you can transfer the shares to your name at any time.

The registered office of the company must be in Cyprus. This is the official address of the company and where all the company’s official statutory documents, registers and company seal are kept. Signature Private Office can provide your company in Cyprus with a registered office address.

The company must have at least one director. The director can be either a body corporate or a person. The appointment of a foreign director is permitted. Although there is no requirement that the director(s) are local, we advise that you appoint Cyprus individuals or corporate entities in order to have effective management and control in Cyprus so that your company is considered to be a tax resident of Cyprus and benefit from the tax advantages. Signature Private Office can provide nominee directors in Cyprus.

The Cyprus Companies Law requires that a private limited liability company must have a minimum of one share and one shareholder. The Authorised Share Capital of the company starts at €1000. There is no minimum Issued Share Capital. However, it is the norm that the Issued Share Capital of the company is at least €1000. The class of shares can be registered shares, preference shares, redeemable shares and shares with or without voting rights.

A Cyprus Shelf Company is a ready-made company which has no assets or liabilities and has never conducted business as it is registered with the sole purpose of being sold. All shelf companies have been dormant since the date of their incorporation. Once the company is sold, the ownership of the shelf company is transferred from the nominee shareholder to the owner (the purchaser) by transferring the shares to the owner’s name. If the shares will continue to be held in the name of the nominee shareholder, for and on behalf of the owner, a Declaration of Trust is issued. The acquisition of a shelf company is fast, simple and offers essential advantages:

• the corporation is immediately available;
• registration in the commercial register;
• immediate legal capacity;
• no liability risk;
• no debts or obligations;
• no previous business activity.

If you need more information on a Cyprus shelf company, please contact us.