This is one of our most popular packages with worldwide customers, and includes:
The registration your private limited company in Cyprus from scratch using our registered agent & registered office address, and appoint your own candidates to the roles of director, secretary, and shareholder;
The standard capital on formation is €1,000 divided into 1,000 shares valued at no par value or €1.00 each (it is not required to have all of the shares issued, but a minimum of one share must be issued);
The government and initiation fees for incorporation are included in the price of this package;
The search for limited company name availability, confirmation, and reservation, which usually takes as little as five to seven days;
The preparation and submission of the memorandum and articles of association of your company (in English & Greek languages);
The provision of a local registered office address in Nicossia (which is statutory requirement in Cyprus) for 12 months is included in the price of this package (our registered office address service is charged annually);
The formation of a private company limited by shares usually takes as little as fifteen to twenty days from the time that your application and payment are received by Coddan;
To receive an original of the certificate of incorporation from the Companies Registrar usually takes as little as one to two days from the time of incorporation.
The following hard bound copy legalised with an official apostille of corporate documents, will be posted to you upon formation of your company:
The original certificate of incorporation (both in English & Greek);
A bound copy of the memorandum and articles of association of your company (both in English & Greek);
The minutes of the first meeting of the board of directors (both in English & Greek);
A completed register of directors and shareholders (both in English & Greek);
Share certificates;
Company seal.
Premier Package
Annual Maintenance Fee £1000.00
£ 2,000
This is our greatest package with international customers, and includes:
The registration of your private limited company in Cyprus from scratch using our registered agent & registered office address, appoint our own candidate to the role of a nominee secretary, a nominee director, in addition we will our own candidate to the role of a nominee shareholder;
The standard capital on formation is €1,000 divided into 1,000 shares valued at no par value or €1.00 each (it is not required to have all of the shares issued, but a minimum of one share must be issued);
The government and initiation fees for incorporation are included in the price of this package;
The search for limited company name availability, confirmation, and reservation, which usually takes as little as five to seven days;
The preparation and submission of the memorandum and articles of association of your company (in English & Greek languages);
The provision of a registered office address in Nicossia (which is statutory requirement in Cyprus) for 12 months is included in the price of this package (our registered office address service is charged annually);
A local nominee secretary for 12 months is included in the price of this package (our nominee secretary service is charged annually);
A local nominee director for 12 months is included in the price of this package (our nominee director service is charged annually);
A local nominee shareholder for 12 months is included in the price of this package (our nominee director service is charged annually);
The formation of a private company limited by shares usually takes as little as fifteen to twenty days from the time that your application and payment are received by Coddan;
To receive an original of the certificate of incorporation from the Companies Registrar usually takes as little as one to two days from the time of incorporation.
The following hard bound copy legalised with an official apostille of corporate documents, will be posted to you upon formation of your company:
The original certificate of incorporation (both in English & Greek);
A bound copy of the memorandum and articles of association of your company (both in English & Greek);
The minutes of the first meeting of the board of directors (both in English & Greek);
A completed register of directors and shareholders (both in English & Greek);
Share certificates;
Company seal;
Pre-signed, undated letters of resignation from a nominee director and a nominee shareholder (in English only);
A general power of attorney signed by a nominee director (in English only);
A declaration of trust from a nominee shareholder (in English only);
An indemnity letter for the power of attorney (in English only);
A nominee agreement which provides for the indemnification of the nominees (in English only).
Incorporation: Legal Requirements
A tax-resident company in Cyprus can trade within Cyprus, also can own real estate in the jurisdiction of Cyprus.
The company is required to have a registered office address in Cyprus.
The company is required to have a registered agent in Cyprus.
At minimum, one director and one secretary must be appointed.
There is no maximum number of directors.
In theory, director and secretary can be of any nationality. In practice, if you would like too enjoy the benefits of Cyprus Double Tax Treaties, you should have a local resident who needs to be appointed as your company director and as a secretary (you may use our nominee director, also nominee secretary service).
Directors can be corporate bodies or private individuals.
At minimum, one shareholder must be appointed.
The same person may be both a shareholder and a director.
The minimum paid in and issued capital may be just one share which is fully paid.
Shares can be issued with or without par value.
Shares may be issued in euros or in any recognizable currencies.
Every company must prepare a full set of financial statements in accordance with International Financial Reporting Standards, and every parent company that has one or more subsidiaries, other than a company which is itself a wholly owned subsidiary, should present consolidated financial statements.
Every company must complete an annual return within a period of 42 days from the date of its annual general meeting and must file immediately with the Registrar of Companies a copy of the annual return, signed by a director and the company secretary.
The annual return filed with the Registrar of Companies must be accompanied by the full set of financial statements.
Other packages:
Cyprus: VAT Registration. Introduction
After having received many questions about changes in legislation in Cyprus and about the VAT organisation (application, requirements, terms and etc) for all Cyprus companies, we have decided to give our client small review on this matter. First of all in need to be noted that the opening of a VAT account is very difficult procedure and all companies will be charged extra for this service. A fee of £200 will be charged for the Registration of VAT Number.
Accountancy and VAT work rate: Accountant £25. Senior Accountant £35. Manger £50. Estimate (normal Value) depends on the difficulties of the Accounts, £150, per month, (plus VAT, current 15%).
Audit, Taxation - Annually, depends on the value of work and complexities, estimated from € 1,000 (plus VAT, current 15%). The company wishing to be registered for VAT in Cyprus should answer the following enquiries: give a full description of your company's main activities. If you are not obliged to register but wish to register voluntarily. State the value of your estimated taxable transactions for the next 12 months. Standard 15% of VAT. Reduced 5% VAT. Zero VAT.
The responsibility of VAT return is undertaken by the Director and Secretary. Every 3 months we must fill in and hand in to the VAT Authorities the VAT forms. In order to have these forms filled in we must have all original contracts, invoices, bank statements etc. in our office "in time" about 15 days after each month.
IS PREFERRED:
A deposit of minimum £1,800 must be made to our account. (Depends on the work, turnover and the responsibilities of the company). Moreover, we must be appointed as the second signatory for the bank account either opened abroad or in Cyprus for the getting from the bank information and documentation needed for the VAT procedure quickly and on time.
We suggest you to appoint our nominees as a second Director and Secretary of the company for the applying of a VAT number in Cyprus. For the other Director appointed by you, we must have his/her passport copy and biography sent to us and accompanied by a letter from the Beneficial Owner who will be appointing this Director, also a letter (with forms of the VAT Organization signed by the Beneficiary) addresses to us asking to registered VAT, a form from the VAT Organization will be also sended to the Beneficiary Owner to be signed and kept it in our files, after will be sent by UPS to the client (every case will be considered it separately).
Due to the responsibilities of the Nominee Director and Secretary of the company for the VAT, it would be better to give a salary to them on a monthly basis (as the services which are given to the clients are without any responsibilities etc.) We also suggest you to study the following samples in which Cyprus company registered with VAT may be involved:
SAMPLE:
If a Cypriot company purchases goods/services from a German company or any other European company which has a VAT organisation number then the VAT charge is 0%. Furthermore, if the Cypriot company sells to a French company or any other European company which has a VAT organisation number then the VAT charge is 0%.
If a Cypriot company, which has a VAT number has a trading activity with French or any European company, which does not have a VAT number - 15% VAT charge.
If Cyprus company, which has a VAT number has a trading activity with the Russian or non -European company - 0% VAT charge.
If the European company, i.e. German company has a VAT number and it has trading activity with the Cypriot company or with any other European company without VAT number registration, when the German company will be charged for VAT.
The Cypriot company which does not have VAT number has the trading activity with the French company or any other European company - 0% VAT charge.
The Cypriot company which does not have VAT number has the trading activity with the Russian company or any other non- European company - 0% VAT charge.
In order to open a VAT account for a UK company, this company must have a Branch in Cyprus.
If the ship is over 15 tones and will carry passengers then no it doesn’t pay VAT If it a second ship is bought from an EU country and is less than 15 Tones then again no VAT is paid if the ship was bought from a non EU Country then yes it will have to pay VAT. The main objective of the EU is to have all EU countries only pay VAT once. But please not that changes may be made and every case must consider separately and looked over it with our Accountant.
UK - Cyprus Attractive Tax Planning Features
For small trading and other active business groups, Cyprus can be used legitimately to reduce tax liabilities of their UK related entities. UK residents can transfer assets to Cyprus entities, collect profits in Cyprus and defer payment of UK tax indefinitely. Cyprus is an ideal route through which non-EU residents can extract profits from their EU operations for interest and royalty payments. Dividends can be extracted out of the EU with zero tax. It is the most advantageous jurisdiction for holding shares of EU companies.
"Small" UK Groups Use Cyprus To Reduce Tax Liabilities
EU has ruled that thin capitalization rules between EU countries is illegal, as harmful to competition. Thin capitalisation is the restriction on interest payable as a result of financing arranged by a parent company considered as excessive compared with the company's share capital.
UK has abolished thin capitalization rules and has introduced transfer pricing rules to all transactions between entities irrespective of whether those entities are both UK or whether they are cross border transactions.
But as this would make the system unmanageable, the UK has exempted "small" companies transacting with related persons in qualifying territories completely from transfer pricing and thin capitalisation rules. Cyprus is a qualifying territory because it has a double tax treaty with the UK with a non-discrimination article. Equally, all European countries are indeed on the list of qualifying countries, including Russia. "Small" means the fulfillment of two of the following three conditions by the company and the group: less than 50 employees; turnover less than ?9.5 mil; gross assets less than 9.5 m.
This constitutes a key development and it means that for small groups Cyprus is an ideal location for reducing the taxable base of a UK related enterprise by having in Cyprus legitimately higher than market interest rates on loans, triangular trading etc. The UK Tax Authorities have no right to dispute the transaction or its deductibility in the UK.
UK Residents Transfer Assets And Profits In Cyprus Companies
UK's s.739 ICTA 1988 states that where a UK tax payer transfers assets to an offshore entity that result is a future income stream to that entity and the transferor has the power to enjoy that income stream then the income of the offshore entity will be treated as being the income of the transferor and subject to UK.
However, s.739 can be overridden by a suitable tax treaty and the UK - Cyprus double tax treaty states that the profits of a Cyprus company are taxable only in Cyprus unless the Cyprus entity carries out its business in the UK through a permanent establishment. It will be necessary to show that the effective management of the Cyprus company is carried out in Cyprus.
Consequently, UK residents can transfer assets to Cyprus entities, collect profits in Cyprus and defer payment of UK taxes indefinitely.
Interest And Royalty Directives
The directive is required to be implemented by EU member states as of I January 2005. Interest and royalty payments arising in one EU member state shall be exempt from any taxes imposed on these payments in that state provided the beneficial owner of the interest is a company in another EU state.
The companies must be associated and the company receiving the interest or royalty payment must not be acting as a trustee, agent or intermediary. It must receive the income for its own benefit. The interest or royalty must be on an arm's length basis.
Cyprus is an ideal route through which non-EU residents can extract profits from their EU operations. Interest and royalties are allowed as an expense in the EU reducing its tax base and is taxed at low rates (often nearly zero) in Cyprus. As an example: Cyprus entity receives loan from a BVI company and in turn lends the funds to its German subsidiary. A small interest margin is left in Cyprus on which tax is paid at 10%, whereas tax relief is obtained in Germany at over 30%.
Parent - Subsidiary Directive (Dividends)
Dividends paid from one entity in the EU to another associated entity situated within the EU are made without any withholding taxes. An associate is a related entity having a 5% shareholding (reduced to 10% by year 2009). Dividends received by a Cyprus resident company are normally subject to defence tax of 15%. Such dividends are exempt where the dividends are received from a foreign entity in which the Cyprus entity owns more than 1% of the share capital and the foreign entity derives more than 50% of its income from non-investment activities.
Consequently, in most cases where Cyprus company acts as a holding company to an entity registered abroad, we would expect the dividends received to be exempt from taxation in Cyprus. In conclusion, Cyprus is the most advantageous jurisdiction for holding shares of EU companies. It allows dividends to be extracted out of the EU with zero tax.
1. A uniform corporate tax rate of 10% is introduced for all companies.
2. Dividend income is exempt from tax in Cyprus irrespective of its source, provided certain conditions are satisfied. Where the exemption does not apply, 15% defence tax is payable but credit for foreign tax suffered is given irrespective of the existence of a treaty.
3. Interest income is 50% exempt from corporate tax, unless it is received in the ordinary course of business in which case it is taxed like normal trade income. That portion of interest income which is exempt from corporate tax, is subject to defence tax at 10%, but credit is given for foreign tax suffered irrespective of the existence of a treaty.
4. Profit from the disposal of securities is exempt from tax in Cyprus.
5. Profits of a permanent establishment maintained abroad by a Cyprus company are exempt from tax in Cyprus.
6. There is no withholding tax on dividends paid to non resident shareholders.
7. There is no withholding tax on interest payments made abroad. There is no withholding tax on the payment of royalties derived from outside Cyprus.
8. Corporation or physical person of any nationality may act as directors. Minimum of one (1) director. A registered office in Cyprus is required.
9. Cyprus has concluded over 34 Double Tax Treaties.
10. All Cypriot companies must appoint a company secretary, who may be a natural person or body corporate. It is advisable to appoint a resident company secretary.
The registration your private limited company in Cyprus from scratch using our registered agent & registered office address, and appoint your own candidates to the roles of director, secretary, and shareholder;
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