Benefits of starting a Cyprus Ltd business

Cyprus is a country with many tax reductions for residents and businesses. The founding of your Ltd. can not only bring advantages, but also more success! If you have the right planning and capital, there are not more then just few restrictions on being self-employed. This makes everything very easy, even if you come from another EU country!

Why should you start a company in Cyprus? Due to the few restrictions, there are many opportunities to grow your business! With the right resources, you can organize your opening very soon.

Cypriot company

The island of Cyprus has been ranked highly by Forbes magazine for its thriving economy and low tax rates. These two factors make Cyprus an attractive destination for companies looking for growth opportunities abroad or just wanting to do business without a headache!

The Cyprus government’s efforts to encourage entrepreneurship are paying off! 12% of people are involved in startups. There’s also a new program to make it even easier for newbies: The Fast Track Business Activation (FTBA). This mechanism was developed so that one no longer has to wait months to start a business.

Three company registrations

The Cyprus Business Register offers individuals three ways to incorporate a company in Cyprus:

1. Private Cyprus Ltd.

For Private Cyprus Ltd. there are no minimum capital requirements. There must be a director and a secretary. The director can also act as a shareholder.

2. Public Cyprus Ltd.

In order to incorporate a limited company in Cyprus, a share capital of at least 25,630 euros is required. Also, there must be seven shareholders and two directors for the company to be registered.

3. Sole proprietorship

Because of the new non-dom tax residency rules, it has prompted many digital nomads and entrepreneurs to change their business structures. Prior to this announcement, one-man business were particularly popular. The reason for this was: It makes no difference whether you are a corporation or not when filing tax returns in Cyprus! This means that the formation of a Ltd. almost identical, depending on what you think is best financially.

One-man business is an excellent option for people who want to start their own business. The first 19,500 euros are exempt from the tax rates, after that higher rates apply.

The advantages of a Cyprus Ltd.

The tax rate in Cyprus is one of the lowest you can find. The top corporate tax rate is only 12.5%.

Non-Dom shareholders and directors are exempt from the Special Defense Contribution Tax (SDC) for 17 years. Any registered Cypriot Ltd. will be treated as a recipient of income as long as she is taxed elsewhere in her home country. It is subject to Cypriot corporate income tax: 17% interest returns and rents after 25% deduction.

Cyprus offers a 0% tax rate on withholding tax, dividend income and disposal of securities as well as heavy cuts under the IP box schemes. All of this enables you to set up holding structures.

The interest in double taxation agreements is high due to the geographical location and membership in the European Union. The reach of companies in the main markets can be immense, making Cyprus an attractive place to invest.

The Cypriot government has invested in new industries to keep the economy growing. By building the infrastructure for these innovative developments, it has established itself as a center for technological innovation and progress.

Cyprus is more than just a powerful shipping industry. It is also home to many different industries that provide essential services. This includes financial sectors such as banking and other related fields and services!

Establishing a company in Cyprus involves several steps. However, if you work with an experienced specialist, the process will be faster and smoother.

Simple instructions to start a business:

• You enter a company name in the commercial register and pay a registration fee of around 30 euros.
• Establish a Cypriot headquarters and appoint company directors.
• Appoint a local representative to represent your company throughout the registration process.
• Prepare the paperwork, including the memorandum, and have the shareholder and/or secretary sign it.
• The registration fee for a limited liability company in Cyprus is EUR 165 or EUR 235 without share capital.
• In order to be able to generate sales as an employer to obtain tax, identification number, social security and pension insurance, you need to fill out the tax return (free of charge).
• Depending on the business of the company, it may be necessary to obtain licenses and permits from local authorities.

Depending on the location, this process takes 2-3 weeks. However, it can also happen that the local authorities need a little longer to issue the necessary licenses and permits.

Conclusion: A paradise for companies!