Cyprus

General Information on Cyprus
Cyprus company

General Information on Cyprus:

About Cyprus:

Cyprus is an island in the Eastern Mediterranean, at the meeting point of three continents, Europe, Asia and Africa. It has a long and remarkable history of seven thousand years. The island’s population is estimated to be 770,000 inhabitants occupying 9.251 square kilometres. Cyprus, lying as it is at the hub of the three older continents, has a strategic location. This has been known for thousands of years and has been one of the reasons why so many different empires considered it important to use Cyprus as a regional base (Alexander the Great, Roman Empire, Byzantine Empire, Ottoman Empire, British Empire). Today, Cyprus is the most eastern bastion of the European Union and its springboard for the Middle East, North Africa and Eastern Europe.

Legal System in Cyprus:

Cyprus became an independent Republic in 1960 after 82 years of British administration which left a strong mark on its way of life. The Cypriot legal system and all statutes regulating business matters are based upon English Common Law. Being a full member of the European Union, Cyprus incorporates all European Laws and Directives (Acquis Communautaire)

Infrastructure in Cyprus:

Cyprus' main international airport, Larnaca Airport, situated 50 kilometres from the capital, Nicosia, is served by a wide network of air-routes connecting Cyprus with Europe, Africa and Asia. There are frequent flights connecting with many cities.

Cyprus, recognising the importance of telecommunications, has invested heavily in this sector. As a result, the island may claim to be amongst the most advanced countries in the world in this respect.

Cyprus Economy:

Cyprus has an open free market economy which has performed consistently well for more than 20 years, leading to a high standard of living for its people. Tourism has been and still is the backbone of the economy while the agricultural and manufacturing sectors make up a progressively smaller proportion. Cyprus has developed into a commercial, financial and maritime centre and this has led to the growth of related service industries.

Currency in Cyprus:

The Cyprus Pound (CYP).
Exchange rates as at 01.10.2004, CYP1,00 = USD2,19 = EUR1,76 = GBP1,21
The government of Cyprus is planning to join the EURO zone and this is expected (but not certain) to take place in 2007.

Language in Cyprus:

Greek and Turkish are the official languages of Cyprus, although English is widely spoken and used in all sectors. A large number of Cypriots have studied abroad and are fluent in other languages too.

Time Zone:

(GMT +02:00)

Cyprus' time zone is 7 hours ahead of New York and 7 hours behind Tokyo, allowing executives to work with the world's most important financial centres in the same working day.

Cyprus company:

Types of a Cyprus company:

International Business Company (IBC)
This company can be used for many different purposes, and can be treated as:
            - A Cyprus Trading company
            - A Cyprus Holding company
            - A Cyprus Investment Company
            - A Cyprus Consultancy company

Company Law in Cyprus:

Companies Law, Cap.113.
The main body of the Law in Cyprus is in force since 1952 and it was an exact copy of the Companies Act 1948 of the UK. Recently it has been amended to incorporate European Union directives.

Capital requirement of a Cyprus company:

Minimum paid up capital – CYP1.000. For a company with a fully fledged office in Cyprus,the minimum capital is CYP10.000.

Restrictions on activity of a Cyprus company:

Special permission required for banking, insurance and financial services.

Taxation of a Cyprus company:

A Cyprus Trading company:Tax at the rate of 10% on the net profits of an IBC
A Cyprus Holding company: No taxation on income from dividends or disposal of securities
A Cyprus Non-resident company: No taxation
Non Cyprus resident shareholders of a Cyprus company are not subject to any tax on dividend distributions by Cyprus IBCs.
Resident shareholders are subject to additional tax on dividends of 15%

Double Tax Treaties between Cyprus & other countries:

Cyprus has tax treaties with many countries, including the main Western European and North American countries and almost all Eastern European countries. The combination of low or no taxation with the benefits provided by its treaties with many countries, make Cyprus one of the prime locations for international tax planning schemes. See relevant Table of Tax Treaties.

Annual Returns of a Cyprus company:

Annual Returns are required to be submitted

Annual Licence Fee in a Cyprus company:

CYP7 or CYP15 for late filing

Annual Financial Reporting of a Cyprus company:

Annual Financial Statements are required to be prepared and presented to members. A copy is filed with the Registrar of Companies, together with the Annual Returns.

Registered Office & Registered Agent in Cyprus:

Registered office in Cyprus: Yes, must be situated in Cyprus.
Registered agent in Cyprus: Not required.

Company Secretary in a Cyprus company:

Yes. Can be of any nationality and residence and can be a physical person or a corporate entity.

Directors in a Cyprus company:

Minimum of one. Can be of any nationality and residence and can be a physical person or a corporate entity.

Shareholders in a Cyprus company:

Minimum of one

Disclosure of Beneficial Ownership in a Cyprus company:

There is no requirement to disclose the beneficial ownership to any Government Authority. It has to be disclosed, in confidence, to banks, if a bank account is opened in Cyprus.