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Cyprus is an island in the far eastern
Mediterranean. It's a hub of the busy trade routes linking Western
Europe with Middle East and North Africa. While Greek and Turkish
are the two official languages, English is wide spread, especially
in the business community. The country is a Western type democracy.
The legal system is very close to British
Common Law, especially the corporate law.
Cyprus is not a classical "straight"
tax haven, like the Bahamas,
BVI, and many others; rather it's a well-recognized
tax-incentive country with a wide network of
treaties for the avoidance of double taxation. It found
a very distinctive niche among Offshore
Financial Centers.
Our clients' favorite applications for Cyprus private limited
companies are as follows:
- A powerful and respectful vehicle for withholding tax
exempt investments, international holdings structuring,
making entry into and gaining new markets. The
27 double taxation treaties having been ratified by
Cyprus may be efficiently used for the above purposes.
- Worldwide commerce, transit via the island's seaports.
- A headquarters' company for administration of multinational
operations with a real office in Cyprus.
- A shipping
company (Cyprus is one of the top maritime nations:
its merchant fleet ranks 6th in the world).
- A Cyprus Private Limited Company is an effective tax planning
vehicle when it is necessary to provide audited statements
for some transactions and/or investments (i.e. tenders (bids),
mergers and acquisitions, etc.)
Suffice it to say, some of the above applications and/or features
are just unique in the offshore world.
The best low tax corporate tool in Cyprus: Private
Limited Company
Outstanding features:
- Corporate tax: 10%, possible advantages under Double
Taxation Treaties.
The companies which had income from activities as at 31
December 2001, may choose to be taxed at the rate 4.25 per
cent until tax year 2005.
NO capital gains tax is payable on the sale or transfer
of shares in an IBC.
- Names disclosure in public records: shareholders - YES,
directors - YES, but to retain confidential status of the
beneficiary nominees are widely
used
- Bearer shares:
NOT ALLOWED
- Non-resident directors: ALLOWED
- Annual return filing requirements: YES
- Annual financial statements: YES
- Audit of financial statements requirements: YES
Applicable legislation: Cyprus Companies Law CAP. 113, based
on the UK Companies Act 1948.
Our fees and services in Cyprus:
Please click here for the details
regarding our fees and services in Cyprus.
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