Why register a Cyprus company?

Cyprus has become a very popular choice for establishing International Business Companies (IBCs). These were previously called Offshore Companies). The main benefit of setting up in Cyprus is the country’s extremely favourable tax incentives.

Cyprus has been a full member of the European Union since May 2004 and adopted the euro as its currency in January 2008. This, together with its taxation advantages and its strategic location at the crossroads of Europe, Africa, the Middle East and Asia, makes it an ideal location for IBCs.

Other advantages of utilising Cyprus as an offshore jurisdiction include:

  • low administration costs (eg. salaries, rents) compared to other European countries

  • excellent infrastructure, telecommunications and transport facilities with a new international airport in Larnaca having opened in November 2009 and a new terminal and runway opened in November 2008 at Paphos International Airport.

  • confidentiality, if required, as shares and directorships can be held by local nominees, thus safeguarding anonymity of beneficiary owners.

  • professional services (eg. banking, legal, accounting) of a very high standard.

    What are the tax advantages of registering a company in Cyprus?

  • Cyprus has the lowest corporate tax rate in Europe and an IBC will pay just 10% tax on its profits if it is a ‘Cyprus resident’. An IBC is resident if its management and control is in Cyprus. This is usually determined by the place of residence of the majority of its directors and the place where board meetings take place.

  • An IBC will pay zero tax if it is not considered to be resident in Cyprus (but note that a non- resident IBC cannot obtain a Cyprus Tax residence certificate and therefore cannot take advantage of double taxation treaties).

  • Cyprus has double taxation treaties with many countries worldwide, including all the main Western European and North American countries and almost all Eastern European countries. The benefits of these treaties, combined with low or no taxation make Cyprus a highly desirable location for international tax planning.

  • There is no withholding tax on payments of dividends, interest and royalties by an IBC to non-resident individuals or companies.

  • Dividend income received in Cyprus by an IBC will be wholly exempt from tax in Cyprus (under certain conditions).

  • Profits made from an entity established overseas are fully exempt from corporation tax.

  • 50% of interest received is exempt from tax unless the interest is received in the ordinary course of business.

  • There is no time restriction in the carry forward of tax losses. They can be carried forward indefinitely to be set off against future profits.

    Do I need to travel to Cyprus to register a company or open a bank account?

    It is not necessary for you to come to Cyprus to establish your International Business Company providing you make use of our nominee services as the nominees can sign all pertinent documentation. Nominees can also open bank accounts on your behalf.

    Do I need to lease an office if I wish to do business in Cyprus/from Cyprus?

    There is no statutory requirement for you to lease an office. However, if you do need to visit Cyprus to conduct business or if you wish to conduct business via Cyprus remotely, Rime can offer you our Virtual Office and Affiliated Services. At very competitive rates we provide any or all of the following facilities:

    ► short/long term office space rental

    ► provision of office facilities (telecoms, computer, copier etc)

    ► call handling/forwarding

    ► message/mail forwarding

    ► translation services

    ► transport within Cyprus

    ► hotel/sightseeing/restaurant arrangements

    ► conference/seminar organisation

    The above appears interesting; why use Rime?

  • Rime has been established for over 15 years in Cyprus; our dedicated team of professionals know how to expedite business effectively, efficiently and quickly.

  • We offer a fully tailor-made, highly confidential company formation service together with a wide range of associated legal, banking and accounting services which will facilitate the establishment and on-going running of your corporate entity in Cyprus.

  • We are dedicated to ensure that you get the maximum benefit from your business by taking full advantage of the favourable tax regime in Cyprus.

  • You need go nowhere else for many of your other business needs; at Rime we have been providing a wide range of information, investigation and consulting services for many years:

    Copyright © 2018 RIME IB. Created by Belugga