Set Up Your Cyprus-Based Business the Smart Way!
- A company in Cyprus is considered as a respectable EU entity
- 15% corporate tax rate, one of the lowest in the EU!
- Business setup is done remotely, no personal visit required
- If you are in a hurry, we offer pre-approved Cyprus entities ready for activation
- 0% tax on dividend payments (by the Cyprus company to its foreign shareholders)
- 0% on dividends received from subsidiary companies all over the world
- 0% tax on dividends received by a Cyprus company (on certain conditions)
- 0% tax on profits made from trading in own shares, shares of other companies or securities
- 0% taxes on outbound dividends, interests and royalties
- No thin capitalization rules, no exchange controls and no capital gains tax (except on real estate located in Cyprus)
- Wide network of favorable Double Tax Treaties
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Why us
30 Years of Excellence in Cyprus Company Services
- Oneworld Ltd is an established, well known professional firm in Cyprus for 30 years
- We are leaders in setting up, managing and administering Cyprus companies of all kinds of structures and operations
- Our team includes professionals from all disciplines – chartered accountants, tax consultants, business consultants and administrators
- We offer one-stop-shop and bespoke services to suit each client’s needs
- We guarantee ease of mind throughout the process, ensuring a fast and efficient business set-up
- Competitive fees and highest quality of services
Key Features of Cyprus Entities
Name approval
Before any other steps are taken with regard to the Cyprus business setup process, the Registrar of Companies must be approached to ascertain whether the proposed business name is acceptable. It is advisable to submit two or three alternative name options for approval, as this can help avoid delays. If the proposed Cyprus entity is intended to have a name similar to that of its parent company, the Registrar will require written consent from the parent company for the use of such name.
Share Capital
Shareholders
Registered office
Secretary
Directors
The powers in a company are distributed between the board of directors and the shareholders as stipulated in the Articles of Association. The power of the directors can therefore be as wide or narrow as the Articles provide except that the exercise of certain powers are specifically reserved for the shareholders. For example, the shareholders always have the right to remove directors.
The company must have at least one director, and they can be either corporate or physical persons (individuals). Although there is no requirement that the director(s) are local, we strongly recommend that the majority are Cyprus residents, so that the company is considered to be a tax resident of Cyprus.
Accounting & Audited Financial Statements
Every Cyprus company must maintain accounting records that enable the preparation and audit of financial statements that show a true and fair view of the company’s financial position and performance in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS).
The accounting records must be held either at the registered office or at another place in Cyprus and must always be available for inspection by the directors.
The financial statements must be accompanied by a report of the board of directors which includes:
- details of any changes in the nature or volume of operations
- any changes in the share capital
- any significant change in the constitution of the board of directors or the duties assigned to its members
- directors’ proposals regarding the distribution or not of the retained profits
Failure to comply with these requirements leaves the directors open to prosecution with the possibility of a fine of up to €10.000 and imprisonment of up to 12 months. The financial statements must be audited by a registered auditor.
Popular use of Cyprus companies
- For a group that is relocating to a new jurisdiction or on formation of a new publicly-traded corporation with international operations
- For a group that is relocating to a new jurisdiction or on formation of a new publicly-traded corporation with international operations
- To hold subsidiaries that have scope for significant capital appreciation, that may be spun off or sold in the future. Profits arising from disposals are not taxable in Cyprus
- To benefit from the favourable withholding tax provisions of the Cypriot double tax treaties network, the EU Parent Subsidiary Directive and other EU Directives
- To avail of the favourable repatriation provisions under Cypriot tax law which allows payment of dividend, interest and royalties, in most cases, without payment of withholding tax
- Suitable for any fund or investment vehicle, as there is no tax on transactions in securities even if this is the trading activity of the entity
- Where it may be important to unwind the holding company structure at some stage in the future in a manner with no tax implications. No capital gains tax on disposal of shares, dividends exempt from taxation subject to easily met conditions, no taxes on liquidation or capital reduction to non Cyprus resident shareholders.
- To hold real estate companies for a disposal of property without taxation. Since Cyprus imposes no tax on the disposal of shares (with the exception of gains derived from real estate situated in Cyprus) a Cyprus company offers an ideal way of holding a subsidiary real estate company. By selling the shares in the subsidiary real estate Company to a prospective buyer effectively allows for the tax free disposal of the property
- To hold IP companies for an exit route without tax implications. Since Cyprus imposes no tax on the disposal of shares, a Cyprus company offers an ideal way of holding a subsidiary IP company. By selling the shares in the subsidiary IP company to a prospective investor effectively allows for the tax free disposal of the intangible assets
Interested in setting up your company in Cyprus ?
Contact us today and receive a complimentary consultation with one of our advisors!
About Us
Oneworld Ltd employs a team of 75 professionals and corporate administrators and provides business setup, fiduciary, management, banking, accounting, redomiciliation services, as well as setting up and administering private funds and trusts.
We advise on tax planning, help establish and administer companies in zero and low tax jurisdictions, and provide boutique services including international mobility and relocation support. Oneworld Ltd is authorised by CySEC as an ASP (Administrative Service Provider), authorisation no. 146/196.
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