Advantages of company formation in Cyprus
We all have probably heard an old cliché saying “If opportunity doesn’t knock, build a door”. So if you are looking for new opportunities, it’s time to build your “door”. But first you need to make sure you are building it in the right place. Prospectacy is here to assist you in finding it.
The country, in which you decide to establish your company, with all its systems can be your key to success. Therefore, if you consider Cyprus an ideal place for your company, it’d be useful to learn about Cyprus company formation and all the advantages it has over other countries. Now, let’s not bit around the bush and get to the point. Cyprus is truly a perfect place for company formation. We will try to present you some of the significant privileges your company may have here.
Cyprus ensures accessible and convenient process of company registration. Unlike Cyprus, some countries require tiresome and sometimes even unnecessary paperwork for registering your company. It offers transparency of the taxation system, which often turns out to play a decisive role for a foreign entrepreneur. Another great offer by Cyprus for foreign investors is a highly favorable tax system. Local taxation system provides a number of benefits for wealthy foreigners. So, all received dividends, interest and royalties are not taxed. In this respect, Cyprus is considered to be the most profitable country in the whole EU. The island uses the lowest in Europe rate of VAT and corporate tax. A company may also be exempt from VAT if it provides its services and goods to non-residents of Cyprus. Its tax rate at 12.5% is one of the lowest in the European Union. All of the above makes the island an ideal place for tax planning, which is actively used by many global holdings and companies.
Another advantage is that, the country has signed a series of treaties on avoidance of double taxation with the majority of developed countries. The existence of such agreements gives international companies the right to pay the necessary taxes and fees in only one country. Apart from this Cyprus provides the most comfortable conditions for running business. The island has a well-developed outsourcing in financial sector. You can hire both local professional and citizens of other countries, depending on the specifications of your business. If necessary, the process of opening a bank account can be carried out online as well. In Cyprus you’ll be given the opportunity to repatriate your capital to any country in the world, regardless of currency. You can also run your company anonymously using only nominee shareholders.
With all these factors you can be sure that forming a company in Cyprus won’t be just a waste of your time, money and efforts. It will be an investment that will ensure welfare of you and your family.
