Your Cyprus Partner
Cyprus Company Setup
Cyprus is a very easy and friendly place to start your business and incorporate your company. The local administration has prepared a very straight forward process and your company can be ready in around 7 working days. Not need for physical presence and the process can be followed up from any part in the world.
The system for registering a company in Cyprus has been completely digitalized and the incorporation procedure is fast and easy with the possibility of having your company incorporation in 7 days.
Dedalos Corporate will provide with all the necessary information and documents to have your company ready, so you can focus on do your business.
Guidelines and assistance during the whole process:
1. Name approval. We provide you the consultation in order to successful have your name approved by the Registrar of Companies. Our firm always has available names that we can provide you.
2. Time to incorporate Cyprus Company. Usually we need 5-6 working days.
3. Drafting Memorandum of Association and Articles of Association. The Memorandum of Association and the Articles of Association must be drawn by a local lawyer and is divided into two parts. And it can be drafted depending on the client’s needs.
4. Share capital. Our firm provides with the information in order to establish the share capital of the company.
5. Company’s officers. We assist you in order to establish the structure of the company (Director/Secretary) and we are specialized and cooperate with HR Recruitment for those client that needs specific personnel.
6. Dedalos Corporate will submit all the forms requested by the Registrar of Companies and we will inform you as soon as the company is officially registered and we obtain all the corporate documents.
“Shelf Companies”
Alternatively In cases where companies are required in the same day then we can provide already-registered companies, often referred to as Shelf Companies. The company will be able to obtain a VAT registration number in 24 hours. The director(s), secretary and shareholders will be provided by our firm and can be changed at a later stage.
Cyprus Holding Company
The Cyprus Holding Company is defined as per it is purpose. Typically the Cyprus Holding Company doesn’t sell or offer any services or products, either construct or manufacture products, or business operations. However, holding companies will own shares, controlling stock in other companies which will normally be trading. These companies will be referred as subsidiaries. Cyprus is a very attractive jurisdiction to establish a holding company due to its different advantages.
KEY Advantages – Cyprus Holding Company Main Advantages
1. Corporate tax of 12.5% on worldwide income. This is a flat rate that only applies to the benefits generated by the company in all activities worldwide.
2. No corporate tax on dividends received from companies either in Cyprus or worldwide. Dividends received by a Cyprus holding company from its subsidiaries are exempt from corporate tax.
3. No withholding tax on dividends paid to foreign shareholders either individuals or companies.
4. No defence tax (applies to passive income) on the dividend received provided that.
5. More than 50% of the income of the dividend paying company is derived from trading activities.
6. No tax on the disposal of shares and titles in general.
7. Based on the extensive network of tax treaties there is no or minimal withholding tax on dividends received by foreign companies.
8. Taking advantage, the double tax treaties Cyprus have in place with many countries. Currently, Cyprus has an extensive network of double tax treaties with more than 60 countries, including major economies. These treaties will eliminate or minimize double taxation on income earned by a Cyprus holding company and its subsidiaries.
9. EU Membership and Regulatory Framework, Cyprus is a member of the European Union (EU) since 2004, benefiting from the freedoms of movement, capital and services within the EU market.
Relocation Services
Relocation in Cyprus
With the aim of facilitating the establishment of business in Cyprus, the Council of Ministers approved the Amendment of the Policy for the Registration of Companies in the Register of Foreign Interest Companies. A company owned by Non EU nationals can relocate to Cyprus with a minimum investment of €200,000.
With this purpose the “Business Facilitation Unit (BFU)” has been created and it will be the main contact for the foreign companies. In order to be eligible, the companies should meet the following criteria:
1. The majority of the company’s shares are owned by third-country nationals.
2. If the majority of the company’s shares are not owned by third-country nationals (i.e. equal to or less than 50%) then the company is eligible if the foreign participation represents an amount of at least €200.000.
In both cases above (1&2), the ultimate beneficial owner (UBO) must deposit an amount of €200,000 in an account held by the company in a credit institution licensed by the Central Bank (payment institutions are not included). Alternatively, the company can submit evidence of an investment amounting to €200,000, for the purposes of operating its business in Cyprus (e.g. office purchase, office equipment purchase, etc.).
3. Public companies registered on any recognized stock exchange.
4. Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
5. Cypriot shipping companies.
6. Cypriot high-tech/innovation companies*
7. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
8. Companies of whom the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.
For cases 3-8, the investment criterion is also applicable and the company’s initial investment in the Republic of at least €200,000, must be proven by presenting the appropriate certificates (e.g. bank statement at the time of deposit of the amount or proof of investment (purchase of office space and/or office equipment)).
*An enterprise qualifies as ‘High Technology Company’ if:
(a) It is already established and has a presence in the market, and
(b) It has a high level or experimental R&D intensity, and
(c) It developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, information and telecommunication technology (ICT), pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.
A new policy for the Employment of third Country nationals (Non-EU)
The Government proposed also a new policy for the Employment of third country nationals who will be employed under the following eligible companies:
· Foreign companies/undertakings operating in the Republic of Cyprus or foreign companies/undertakings intending to operate in the Republic of Cyprus, that operate independent offices in Cyprus, housed in appropriate independent offices, separate from residences or other offices OR
· Cypriot shipping companies OR
· Public companies registered in any recognized stock exchange OR
· Cypriot high-tech/ innovative companies OR
· Cypriot pharmaceutical companies or companies active in the sectors of biogenetics and biotechnology
According to this new policy, the employment permit will be issued to third country nationals with minimum gross monthly salary of €2.500, provided that they fulfill that they fulfill certain criteria.
Some of the most important criteria are:
· Valid passport.
· Having in their Possession a university diploma or title or equivalent qualification or certificates of relevant experience in an employment position lasting at least 2 years.
· Having an employment contract of not less than two years.
· The duration of the Residence and Employment permit has been increased from (2) two years, maximum to (3) three years.
· Have a clean criminal record, medical tests and health insurance.
The issue of such Residence and Employment Permit remains 30 days from the date of submission of the relevant application and documents.
The maximum number of third country nationals that can be allowed to be employed under this new policy is 70% of the total number of employees employed within a period of 5 years, from the date the company joined the Business Facilitation Unit.
Right for Family reunification of third country nationals
The spouses of highly skilled employees have an immediate right to free access to the labour market. The afore mentioned right is not afforded to the spouses of support staff.
