CYPRUS as a principal headquartering destination

The list of large companies that have relocated their headquarters or part of their international operations to Cyprus is not only long but also impressive.

Wargaming, Amdocs, Sykes, Thomson Reuters, Nielsen, 3CX, eToro, NCR, VTTI are amongst some of the major foreign companies that have established their headquarters in Cyprus in recent years.

These companies are essentially operating in different sectors of the economy, and their presence in Cyprus has undoubtedly helped the Cypriot economy on a large scale.

Despite the difficulties faced by Cyprus over the past few years, it is significant to note that it has managed to maintain its comparative advantage as a financial centre, whilst at the same time move forward with the development of new sectors, recognizing the great importance of attracting foreign investment for the advancing of the economy.

Cyprus has several features that make it a competitive business hub.
Primarily the country has an extensive network of constantly expanding double tax avoidance agreements, as well as an appealing tax system.
At the same time, Cyprus offers high-quality and low-cost support services, with an additional advantage of its geographical location and the fact that it offers access to developed markets in the Middle East and Europe.
Simultaneously, Cyprus offers high quality of life, security, pleasant weather conditions, appealing tax incentives for fund managers and suitably qualified human resources.

Given these facts, it is no coincidence that leading overseas companies looking for an alternative destination with a friendly business environment have chosen Cyprus to establish their headquarters.
The shipping industry, the investment industry, the funding industry, the higher education industry and the high-tech sectors are the main areas attracting foreign companies.

Particularly for companies operating in the field of technology and IT, Cyprus offers additional incentives, such as, the country’s current intellectual property system. All these factors answer reason why large international companies have chosen and continue to choose Cyprus for establishing a corporate base. Nonetheless, in order to be able to meet the challenges of tomorrow and to effectively be competitive, it is crucial
to continue working to generate additional conditions that will further contribute to making Cyprus a distinct competitive business centre.
In this regard, both the private sector and the government need to work together to endorse more promotional activities such as organising large conferences in Cyprus and abroad in order to highlight the incentives and the comparative advantages offered by Cyprus. The participation of Cyprus in international financial forums as well as the formation of targeted contact with foreign companies should be the aim of promoting Cyprus as the ideal choice for founding a base for their business.

In order to continue the upward trend in this international competitive environment, the confrontation of the bureaucracy that continues to afflict businesses and citizens must be addressed. Additionally, the strengthening
of economic diplomatic ties in line with the expanding network of mbassies and consulates of Cyprus abroad is crucial. In addition, the digital transformation of the government, the addressing of the long delay in administration of justice and the passing of the investment law, are just some of the stages needed to propel development in a favourable complimentary direction.

While providing an end-to-end back office support system including a variety of corporate,
legal and financial services Prospectacy can assist on moving your headquarters in Cyprus,
ensuring that all the processes and procedures are compliant with the laws and regulations of
Cyprus.

Written by Sergey Babayan

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Business Relocation Services to Cyprus

The importance of location in business should never be overlooked. While the right location can present your business in a positive light, an inconvenient or unfavourable location could negatively impact your potential income, increase your expenses and compromise your business’ prospects for growth. Benefits of Relocating to Cyprus

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The Role of Technology in Wealth Management

Technology has long had a role in the business of wealth management; however, historically its role was to
support the internal needs of wealth managers in areas such as portfolio management and accounting.
Since 2010, we have witnessed a significant revolution in the application, flexibility and deployment of technology
in the wealth management sector. Today, there are more solutions than ever before, all of which are powered by
big data analytics.
From Artificial Intelligence to robo advisors, there are many changes taking place which are affecting different
areas of the wealth management industry, including regulation, privacy and transparency. And while robo
advisors are in no way going to take over the industry, they are changing the way we interact with it.
Here are four ways in which technology is influencing the wealth management industry:

  1. Improved Customer Interactions
    A study by the Shullman Research Centre found that 23% of the world’s millionaires are millennials, while over
    50% of all wealth will be held by generation X and millennials by 2020. These groups, who are renowned for
    moving their wealth around a great deal, will also be on the receiving end of the $30 trillion transfer of wealth
    from the baby boomers.
    Technology has enabled wealth managers to interact with new generations and manage their expectations like
    never before. From around-the-clock availability to effortless interactions, wealth managers are using AI
    chatbots to simulate customer interactions and improve communication with their customers.
  2. Predicting the Future
    One of the greatest benefits of AI is its ability to sift through big volumes of data. What would typically take a
    wealth manager weeks or even months to do can now be achieved in a matter of days – or even hours.
    Wealth managers are using robo advisors and AI to view and constantly assess their clients’ portfolios in more
    dynamic and accurate ways. These advanced systems can quickly predict financial outcomes by looking at past
    and current trends in wealth, as well as outside factors such as the news, social media and product reception.
  3. Create Unique Offerings
    Modern clients expect wealth management services to be tailor-made to their lives. Using the data gathered,
    along with information on the client, AI systems can determine where customers’ money can be spread, or which
    products they should invest in. This expedites the wealth manager’s role, enabling them to refine the information
    and create customized product offerings on a client-by-client basis.
  4. Facilitated Operations
    Sifting through large volumes of data is always subject to human error. With AI, wealth managers can look at
    specific data and monitor every aspect of their workflow. These systems provide information to managers and
    assist them in rectifying errors and facilitating operations.
    The Evolution of Wealth Management
    Technology is freeing wealth managers from repetitive and complex tasks, while enabling them to provide
    specific insights based on the individual needs of the customer. To stay competitive, wealth managers must
    embrace this new era of modern technology in order to become more proactive, stay ahead of the curve and
    offer solutions that meet clients’ precise goals.

Prospectacy Limited offers both personal and corporate wealth management services.
With absolute dedication to our clients’ objectives, we embrace the technological
advancements in the sector, being able to deliver the best possible solutions.

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What Is Corporate Tax?

When it comes to Cyrus company formation, there are certain rules and regulations that entrepreneurs and business must adhere to in order to operate their business, including the need to pay for corporate tax. The country has a favorable taxation regime that’s why a lot of foreign investors are very interested in registering their company in Cyprus.

What does Corporate Tax Mean?

Corporate tax refers to the tax placed on the taxable profits of companies and other profitable organizations, such as societies, associations, clubs and unincorporated entities. The taxable profits include the profits from capital gains, also called as chargeable gains, and taxable income, including investment or trading profits.

Organizations and companies based in the UK are expected to pay a corporate tax on every taxable profit, regardless of where in the world the profit comes from. Once a company is operating in the United Kingdom, but is not based in the country, like operating through a branch or an office, the corporate tax must then just be paid on taxable profits that arise in the UK.

How to Pay for Corporate Tax?

To make sure that your business is paying the required tax, your corporation has to register for corporation tax as part of establishing a private limited company within 3 months of the beginning of the trade (e.g. receiving payments and making sales.) As a corporation, you are responsible for keeping accurate accounting records that you can use in preparation for the annual tax return of your company.

Corporation tax is actually paid on every profit earned by the company of business, which include the trading profits, investments and the money made from chargeable gains or selling assets.

Also, business tax is imposed on every relevant business entity at the end of each accounting year. It is charged for the profits accumulated during the accounting periods of the business. The tax must be paid within the deadline. Filing of tax return should be completed twelve months after the end of the period of accounting.

If correctly structured, a company in Cyprus can conduct an international business in a tax efficient manner. Cyprus company formation enables business owners to legitimately conduct a business in the country and internationally subject to a tax rate of only 12/5 percent, which is among the lowest rates in the EU. Also, Cyprus is ranked as the twentieth freest economy in the world in the 2012 Index of Economic Freedom conducted by the Heritage Organization.

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