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Starting a Business in Cyprus
Starting a business in Cyprus is an excellent, tax-efficient way to conduct international business, and portrays a positive image to customers, suppliers, investors and venture capitalists. Internatrional entrepreneurs choose to set up a company in Cyprus for a variety of reasons, e g as a holding company. The following information will help you make an informed decision on whether starting a business in Cyprus meets your corporate objectives. |
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Cyprus joined the European Union in May 2004 and enjoys European standards of commercial and financial infrastructure, as well as a stable government, economy and legal system. Thanks to transparent legislation, starting a business in Cyprus is quick and simple. |
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When starting a business in Cyprus, a low corporate tax rate of 10% is applicable to both onshore and offshore companies. There is no tax on profit moved from non-resident investments after starting a business in Cyprus. Cyprus has signed double taxation treaties with more than 40 countries, many of which are developed eastern and western European economies. |
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After starting a business in Cyprus, dividends, interest and royalty payments have no withholding tax. Furthermore, there is no capital gains tax when starting a business in Cyprus. |
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100% foreign ownership is permitted when starting a business in Cyprus. |
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After starting a business in Cyprus, Healy Consultants will open a corporate bank account for our Client. |
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A major financial advantage of starting a business in Cyprus is that losses incurred by a company can be set against profits in the future years for tax reasons. |
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After starting a business in Cyprus, a full set of annual accounts must be prepared and submitted to the Cyprus Tax Authority. |
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A disadvantage to consider when starting a business in Cyprus is that worldwide income is taxable for Cyprus-resident individuals and corporations. |
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Disclosure laws in Cyprus should also be considered before starting a business in Cyprus. Cyprus has agreed to share information about savings held in Cyprus banks by EU nationals with the account-holders' countries. |
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Investors planning to set up a company in Cyprus should note that groups investing outside Cyprus may throughflow income streams which are exempt from tax in Cyprus and do not pay withholding tax upon leaving Cyprus. |
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Entrepreneurs planning to set up a company in Cyprus should note that subsidiaries which have potential for significant capital appreciation may be held in Cyprus and sold without any liability to tax on the gain. |
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Entrepreneurs should note, before they set up a company in Cyprus, that assets that have potential for significant capital gain may be placed in a Cypriot corporate wrapper and sold without any tax liability on the gain. |
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Cyprus has a network of 40 double tax treaties with other countries, offering many tax advantages for investors planning to set up a company in Cyprus. |
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Entrepreneurs who hope to set up a company in Cyprus should note that Cyprus offers a favourable exit strategy under Cyprus law which allows payment of dividend, interest and royalties without paying withholding tax. |
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Investors and entrepreneurs who plan to set up a company in Cyprus should note that Cyprus can be used an an ultimate holding Company. For example, in a group that is relocating to a new jurisdiction or on formation of a new publicly traded corporation with international operations. |
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A Cyprus Company is particularly attractive for any fund or investment vehicle because securities transactions are not taxed, even if this is the Company's core activity, a great benefit for those hoping to set up a company in Cyprus. |
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Investors planning to set up a company in Cyprus should note that Cyprus has recently enacted legislation to implement the European Council SE Regulation, and has already implemented the EU Mergers Directive, allowing Companies from other member states to re-form in Cyprus free of tax costs. |
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Entrepreneurs and investors alike planning to set up a company in Cyprus should note that a Cyprus holding Company must produce financial statements of consolidated accounts. |
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Investors with plans to set up a company in Cyprus should note that the Company must be genuinely resident in Cyprus to avail of the advantages outlined above. |
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Cyprus is a reputable, politically-stable European country. A Cyprus corporate bank account is therefore a secure long-term solution with which to support a business on the island and internationally. |
Although Cyprus is not as developed a banking centre as other jurisdictions, some of our Clients choose to open a Cyprus corporate bank account to support their business activities on the island or offshore. As a member of the European Union (EU), Cyprus is a stable, regulated financial market. A Cyprus corporate bank account is therefore an attractive option for certain international Companies. Thanks to Healy Consultants' solid working relationship with the largest bank in Cyprus, our Clients are not required to visit Cyprus to open a Cyprus corporate bank account. |
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A Cyprus corporate bank account portrays an excellent image internationally, especially to your suppliers and customers. |
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Without our Client needing to visit Cyprus, Healy Consultants can open a Cyprus corporate bank account on their behalf . |
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A Cyprus corporate bank account is available in multiple currencies. |
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A Cyprus corporate bank account is supported by a range of additional banking services, including medium-term specialised finance, working capital finance (e g overdrafts, inventory finance), trade finance (e g letters of credit, guarantees etc), cash management, foreign exchange and project finance (e g loan syndication, co-financing and capital markets execution). |
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For Healy Consultants to assist our Clients to open a Cyprus corporate bank account without them visiting Cyprus, we require certain due diligence information including: notarised copies of Passport and Driving Licence of all directors; the Company's corporate documents, including Certificate of Incorporation, Memorandum and Articles and Directors/Trustees resolutions. This documentation must be certified by the local branch of the Cypriot bank (or by a notary public) in the Client's home country, as well as and evidence of the Company's nature of business (e g sample invoices or purchase orders etc). |
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Our fee to assist you to open a Cyprus corporate bank account amounts to US$2,100. This fee includes:Healy Consultants International Banking Team completing the Cyprus corporate bank account application form on behalf of our client, and obtaining our Client’s signature. |
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Additional Cyprus corporate bank account includes Healy Consultants' International Banking Team preparing a detailed Business Plan relating to our Client's Company to support the Cyprus corporate bank account application. The Business Plan provides details of the Company's activities, products and services offered, details of the Company's suppliers and some information on its Clients and intended markets. |
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Healy Consultants International Banking Team will next submit the Cyprus corporate bank account application form and Business Plan to the bank, together with the corporate and personal information outlined above. |
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Healy Consultants' local officer attending a bank interview in Cyprus on your behalf, describing your global business activities and explaining why you require a Cyprus corporate bank account. As described above, Healy Consultants can open a Cyprus corporate bank account without the bank signatory and beneficial owners’ presence. |
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Paying the initial bank deposit to the Cyprus bank on our Client's behalf. A scanned copy of the bank deposit slip is emailed to our Client as verification of the same. |
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Healy Consultants applies for corporate internet banking facilities, on behalf of our Client, to accompany the Cyprus corporate bank account. |
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On behalf of our Client, Healy Consultants applies for a credit card, ATM card and cheque book to accompany the Cyprus corporate bank account. |
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Healy Consultants International Banking Team will then receive approval from Cyprus for the opening of the Cyprus corporate bank account. |
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Healy Consultants receives the Cyprus corporate bank account Internet login and password information and in a sealed letter passes it directly to our Client. |
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Healy Consultants receives a corporate cheque book and sends it in a sealed letter directly to our Client. |
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Finally Healy Consultants receives credit and ATM cards and sends it in a sealed letter directly to our Client. |
Contact Us For more information on starting a business in Cyprus and opening a Cyprus corporate bank account, email email@healyconsultants.com or telephone us in Singapore at (+65) 6735 0120. Back to Cyprus Company Formation page. |
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