Cyprus is an island nation in the Eastern Mediterranean situated at the crossroads of Europe, Asia and Africa. It is a highly popular place for company formation thanks to its attractive business environment, favourable tax rates and strategic location. In recent years, Cyprus has elevated its status as a leading location for company formation, especially for entrepreneurs and companies looking to establish a presence in Europe.
Benefits of Registering a Company in Cyprus
Below, we explore the benefits of registering a company in Cyprus, and discuss how Chesterfield can support you at every step of the process.
Low Tax Rates
One of the most notable advantages of registering a company in Cyprus is the country’s low tax rates. Cyprus has one of the lowest corporate tax rates in the European Union, with a flat rate of 12.5%. This is significantly lower than the average corporate tax rate in Europe, which is around 21%.
The low tax rates make Cyprus an appealing destination for businesses looking to reduce their tax burden. Other tax incentives available to businesses include exemptions on dividends, interest, and royalties received from overseas subsidiaries.
Double Taxation Treaties
In addition to its low corporate tax rates, Cyprus has an extensive network of double tax treaties with over 60 countries, including the UK, Germany, Qatar, China, and India. These treaties ensure that companies that operate in Cyprus are not subject to double taxation, making it an attractive location for businesses looking to expand globally.
For example, if a company registered in Cyprus has a subsidiary in the UK, the profits earned by the subsidiary may not be taxed in the UK. Under the double taxation treaty between Cyprus and the UK – and many other EU and non-EU countries – the profits may be exempt from tax in Cyprus, ensuring the company is not only not taxed twice, but in some cases, a complete deferral of taxes may be achieved.
Simple Company Formation Process
Registering a company in Cyprus is a simple, straightforward process, especially when you employ the services of a company such as Chesterfield, which is a leading provider of offshore company formation services.
The company registration process involves minimal paperwork and bureaucracy, and the entire process is typically completed within ten days. Once you have appointed a licensed lawyer, the next steps involve selecting a company type, filing the necessary documentation with the Registrar of Companies, and obtaining the necessary licenses and permits.
The cost of setting up a Cyprus company is relatively low compared to other European countries, while there are no mandatory minimum capital requirements in place. These low costs make Cyprus an appealing destination for entrepreneurs, startups, and small businesses.
Cyprus’ economy is open, stable and robust, and has grown steadily in recent years. It is dominated by various services industries, including professional services, communications, financial services, energy, and real estate. The startup and innovation sectors are also booming, thanks to significant incentives to boost innovation and entrepreneurialism.
As a prominent international business hub, Cyprus’ economy has diversified considerably in recent decades, with more than 80% of the country’s economy now dominated by different services industries.
Favourable Business Environment
Cyprus is home to a highly skilled, highly educated and multilingual workforce, which is a significant asset for any business operating in the region.
The island’s legal system is based on English law, and is widely recognised as an effective, transparent and business-friendly system. Cyprus is fully compliant with the EU Directives and Regulations, the Financial Action Task Force on Money Laundering, and the Financial Stability Forum Laws.
What’s more, the country has a favourable business environment that is supported by the government, which has implemented several measures to support businesses, including tax incentives and subsidies.
Developed Banking Sector
A key development that has changed Cyprus’ banking landscape in recent years has been the establishment of international companies here. The country has a highly developed banking sector that provides a wealth of financial services to businesses. Cyprus’ banking sector is regulated by the Central Bank of Cyprus, which has strict anti-money laundering and anti-terrorist financing measures in place.
Access to the EU Market
As a member of the European Union, Cyprus provides businesses with access to a market of more than 500 million consumers. This market access is particularly advantageous for businesses seeking to expand their operations in the EU. What’s more, businesses registered in Cyprus can benefit from the EU’s trade agreements with other countries.
Intellectual Property Regime
Cyprus has a well-established Intellectual Property (IP) regime that many companies capitalise on. Tech countries and startups choose Cyprus not only because of its tax benefits, but also because of the security of their assets under the structure IP Law in compliance with a number of international IP, patent and trademark agreements.
Are you ready for the process of registering a company in Cyprus?
As you can see, registering a company in Cyprus comes with numerous benefits. From an easy company formation process to favourable tax rates, this is a superb location for any individual or business seeking to expand their operations globally. So if you’re considering registering a company overseas, Cyprus is certainly the ideal choice, especially when you partner with a leading firm like Chesterfield, who will make the entire process even more streamlined.
Allow Chesterfield to support you with the Cyprus company formation process. Contact our team of experts today.