Offshore Company in Cyprus - Incorporate in Cyprus

Fletcher kennedy are offshore company formation specialists. We incorporate limited liability companies in Cyprus. Cyprus is an established and popular place to incorporate limited liability companies. Cyprus is a full member of the European Union with the lowest corporation tax rate within Europe. Companies incorporated in Cyprus pay 10% tax on profit. However if a company is owned by non residents and is managed outside of Cyprus there is no corporation tax liability.

Why Incorporate in Cyprus?
Companies established in Cyprus and their foreign employees enjoy many privileges.  A summary of these is given below and details of the facilities and concessions extended to international companies and their expatriate employees are given towards the end of this section.

Benefits of Incorporating in Cyprus

• full member of the European Union
• no withholding of tax on dividends
• net profits of international business companies are subject to tax at the rate of 10 per cent only (companies incorporated before 2003 4.25%)
• full tax exemption on profits of international business branches if their management and control is outside Cyprus
• net profits of international business branches are subject to tax at the rate of only 10 per cent if their management and control is in Cyprus
• all expenses incurred for the earning of income, as well as annual allowances on fixed assets, are allowed as a tax deduction
• full estate duty exemption on inheritance of shares in an international business company
• full capital gains tax exemption on capital gains, except on sale of immovable property situated in Cyprus
• full exemption from local social insurance schemes in respect of foreign employees of international business entities
• full stamp duty exemption on contracts entered into by international business entities
• foreign employees of international business entities providing their service in Cyprus, are liable to Cyprus income tax at a rate equal to half the normal Cyprus rates.  Normal rates range from nil to 40 per cent and, therefore, the maximum tax rate of such employees is 20 per cent
• foreign employees of international business companies living and working outside Cyprus are exempt from income tax if they are paid through a bank operating in Cyprus.  If such employees are paid directly abroad they are taxed at a rate equal to one-tenth of the standard rates and, therefore, their maximum tax rate is 4 per cent
• full import duty exemption for the importation or purchase of cars, office and household equipment (except furniture and air-conditioning equipment) for the use of the of the international business entity and its foreign employees if the international business entity maintains a fully fledged office in Cyprus
• residence and work permits for the foreign employees and residence permits for their families can be readily obtained if they maintain an office in Cyprus
• freely transferable currency accounts (in any currency) can be kept both in Cyprus and abroad
• no exchange control restrictions

If you would like further information or want to discuss any aspect of incorporating offshore please contact us

Our fee to incorporate a Cyprus limited liability company is £3250. This includes all government fees and provides a fully configured Cyprus Company with all the necessary services for the first year.

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See Also:

Cyprus - FAQ
Cyprus - Benefits
Cyprus - Prices and Fees
Bank Account for Offshore Companies
Benefits of an Offshore Company

If you would like further information or want to discuss any aspect of incorporating offshore please contact us