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Cyprus imposes the second lowest tax rate for individuals and the lowest taxes on corporate profits among the euro area countries, according to data published by Eurostat. The maximum tax rate for individuals in Cyprus is 30%, while the average in the eurozone is 42.4% and 37.5% in the EU. Regarding the tax on corporate profits, the rate in Cyprus is 10%, while the average in the eurozone is 25.7% and in the EU 23.2%. In addition, Cyprus is one of the most advantageous places of residency for Russian and Ukrainian companies. Also It offers a high level of banking, auditing, accounting and legal services, which developed Cyprus into a successful international business and financial centre.

The following types of companies can be incorporated in the Republic of Cyprus:

• Companies registered under the Companies Law, CAP 113;
• Partnership established under the Partnership Law, CAP 116;
• Foreign company branch established under section 347 of Companies Law, CAP 113;
• Cyprus Investment Firm (CIF) registered under Law 144(I)/2007;
• International Collective Investment Scheme (ICIS) established under the ICIS Law 1999;
• Open - ended Undertakings for Collective Investments in Transferable Securities (UCTIS) registered under the UCTIS Law 2004;
• Societas Europaea company.

Requirements for Company Incorporation in Cyprus

Name: Approval by the Registrar of Companies of the proposed name of the company.

Share capital: The amount of the nominal capital of the company and how it will be divided needs to be declared. This is usually expressed in Euro but may also expressed in any other currency.

Shareholders: The company must have at least one shareholder. For every shareholder, the name, address, occupation, passport details, nationality and number of shares held must be declared at the Registrar of Companies. Owners of shares who wish to keep their anonymity may appoint nominee shareholders to hold the shares on their behalf.

Directors: The company must have at least one director. The names, addresses, occupation, passport details and nationalities of the proposed directors must be declared at the Registrar of Companies. It should be noted that the residency of the directors is one of the key factors determining the residency of the Cyprus company. For this reason, it is recommended that the majority of the directors of the company are Cyprus residents.

Secretary: The company must have a secretary. The name, address, occupation, passport details and nationality of the proposed secretary must be declared at the Registrar of Companies.

Registered office: The proposed address of the company's registered office must be declared at the Registrar of Companies.

Memorandum & Articles of Association: A general description of the proposed main business of the company is required prior to the filing of the memorandum and articles of association of the company.

Cyprus international company advantages

• Introduction of the concept of tax Resident and Non-Resident companies;
• Full adoption of the EU Mergers Directive;
• Full adoption of the EU Parent-Subsidiary Directive;
• Full adoption of the EU Directive on Mutual Assistance and Cooperation;
• Full adoption of the EU Royalty and Interest Directive;
• Taxation of worldwide income for tax Residents and Cyprus sourced income for non-Residents;
• Lowest corporate tax rate in the Europe union of 10%;
• Tax-exempt business profits of Non-Resident companies;
• Tax-exempt gains on the trading and disposal of securities;
• Tax-exempt gains on the disposal of subsidiaries;
• Tax-exempt dividend income (subject to applicable criteria);
• Tax-neutral group reorganisations;
• Tax-relief for group losses;
• The network of favorable double taxation treaties that Cyprus maintains with more than 40 countries including Russia and most of the ex Soviet Union Republics;
• The geographic location of Cyprus, located at the crossroads of Europe, Asia and Africa.