Cyprus is a leader amongst international tax planning jurisdictions and registration of a company in Cyprus is the ideal mechanism for protecting a business. In the last decade the role of Cyprus in international tax planning has increased dramatically. As a member of the EU Cyprus has quickly gained a reputation as a reliable, legitimate jurisdiction with some of the lowest taxes in Europe in addition to having over 40 double tax treaties to assist in international tax planning.

Some of the advantages of incorporating Company in Cyprus are laid out below:-

• The incorporation process for a Cyprus company is simple and straightforward. A Cyprus company can be incorporated with only one Director and Shareholder in addition and there are no restrictions on foreigners acting as Director or Shareholder. Prior to incorporating the name must be approved by the Registrar of Companies. Providing there are no companies with similar name approval will be granted quickly. Filing in English is permitted.
• Lowest corporation tax in Europe of 12.5%.
• Favourable tax regime for Cyprus holding companies, including no tax on consolidation, no controlled foreign company (CFC) rules, etc.
• No taxation on inward or outward dividends and no Capital Gain Tax (CGT) on sales of securities. Due to this many security traders have trading offices in Cyprus.
• There are more than 40 double tax treaties (DTT) concluded with other countries.
• A bank account for a Cyprus company can be open quickly and efficiently without the directors of the company being present. To open a bank account remotely notarisation and legalisation of documents of directors and shareholders of Cyprus company is required.
• Cyprus has adopted International Financial Reporting Standards (IFRS).
• One of the lowest corporate income tax rates in the European Union (12,5%)
• Applicability of all EU directives;
• Advance tax ruling practice exists;
• Extensive Double Tax Treaty network;
• Exemption from tax on incoming dividends;
• Tax free re-organisations;
• Full exemption from tax on profits from the sale of securities (including shares/units);
• No withholding tax on outward payments (Dividends-Interest-Royalties);
• Zero tax if management and control is outside Cyprus;
• Foreign Permanent Establishment profits exempt;
• Tax losses carried forward indefinitely;
• Specific schemes available for obtaining up to 80% deemed deduction on new capital injected in a Cyprus company which is used for producing taxable income.

 

New company registration applications recorded an increase of 1.2% in the
first half of 2017. Specifically the number of applications amounted to 6.442,
compared with 6.366 in the same period last year. According to the Department`s data, in June the number of applications for registration of a new company amounted to 954, compared with 1.016 in June 2016. The number of new company registrations recorded a decline only in 5 out of the 20 last months.

Compared to May 2017, the number of applications has decreased by 16.4%.
Moreover, according to the Registrar of Companies, the number of applications for name approval rose to 2.255 in June 2017, compared with 2.325 in June 2016, showing an increase of 4.2%.

The total number of registered companies stood at 213.276 at the end of
June 2017, compared with 213.206 at the end of the previous month. The new registrations in the first half of 2017 amounted to 6.308.

(Source: www.stockwatch.com.cy)