INCORPORATING IN CYPRUS: A GUIDE FOR GLOBAL ENTREPRENEURS.
Whether you are seeking to start your own business or simply expand your existing business, Cyprus is one of the best places to incorporate. There are 3 key elements all types of businesses need to be successful:
1. A large market;
2. Legal certainty;
3. A favorable tax regime.
Let’s explore each element in turn…
i) A Large Business Market.
In 2004 Cyprus acceded to the EU as a Member State and has since been the springboard for hundreds of thousands of companies to conduct business in the EU. You may be surprised to discover that the EU has a population of 512 million people – that’s 185 million more people than the United States. And once you incorporate in Cyprus, you have the right to “passport” into this large pool and freely conduct business.
ii) Legal Certainty.
Although there is much discussion of investor protection, businesses need to know that they are protected too. Cyprus has a very well-established legal regime with English common law as its basis and has adopted EU directives making it congruent to all other EU Member States. In fact, Cyprus also has a well-developed business and financial case law and laws which make it easy to operate in Cyprus. A testament to this is the high volume of start-up companies that began in Cyprus and have gone on to become multi-million (and even billion!) dollar companies. These industry giants include Viber, PumaPay, and CardPay, to name a few.
Cyprus also boasts advanced financial legislation which has allowed forex companies to establish themselves and grow in Cyprus. Coupled with the tax legislation providing for a tax exemption on capital gains from the sale of securities, it is no wonder why more investment firms establish branches in Cyprus.
iii) A Favorable Tax Regime.
With a 12.5% tax on net income, Cyprus has one of the lowest corporate tax rates in Europe. The tax legislation also provides for:
Capital gains on the sale of securities is tax exempt,
no withholding taxes or tax on dividends for foreigners,
double tax treaties with over 60 countries,
no inheritance taxes,
no immoveable property taxes,
option for foreign Permanent Establishment profits to be tax exempt, and
tax deductions for investments into startups.
Moreover, startups can apply to become certified innovative companies which would allow them to receive EUR 75,000 in grants.
A favorable tax regime provides companies the possibility to grow exponentially by allowing for greater overall profits.
With a large business market that allows for greater potential sales, a legal regime that allows for companies to grow in a safe environment that provides protections for companies, entrepreneurs and investors alike, and a tax regime that helps you reap greater profits, naturally Cyprus is the business nation to set-up and expand your company.
For more information on any of the above and how to incorporate in Cyprus, please contact us at email@example.com