The registration of an international business company in an other jurisdiction is a popular choice for the majority of the most prestigious multinational companies, due to the benefits other jurisdictions have to offer. Cyprus has become a traditional center incorporating thousands International (Offshore) Business Companies per year.
Not only the beneficial geographical position of the island at the crossroads of Europe, Asia and Africa, but also the Cyprus Laws are considered to be the most beneficial in Europe and other jurisdictions. Since 1st October 2004, Cyprus is a full member of the European Union. As a fact, several Cyprus Laws have gone through reform in order to be in line with all the requirements of the European Union. It is worthy to note that Cyprus has been positively ranked by 2012 Index of Economic Freedom of the Heritage Organisation, the 20th country worldwide enjoying freedom in business, monetary, trade, investment, financial and labour markets.
Despite the world economic crisis Cyprus is still considered to be a Tax Heaven for IBCs. There is an array of advantages the companies incorporated in Cyprus can enjoy.
Benefits of Cyprus Tax System
Over the years, Cyprus has created a wide network of double taxation treaties with several countries, which supersede the local tax laws, allowing companies to enjoy considerable advantages. International businesses can take advantage of the treaties as a tax planning tool in order to take protection again double taxation of income which is earned in other countries.
Other important tax incentives for a Cyprus International Business Company are among others the lowest corporate tax percentage on net profits in Europe at 10% where in other countries, the respective taxation is substantially heavier. In the occasion that the management and control of a company is held outside Cyprus then the company is not obliged to pay any tax. Another benefit of Cyprus Tax System is the fact that there is no withdrawing tax on payment of interest, dividends and royalties while dividend income and profits derived from sales of shares or securities are exempt from tax in Cyprus. Regarding capital gains tax there is zero taxation on the sale of overseas properties. Further to that, there are no exchange control restrictions.
Cyprus Company Registration Laws
Apart from the favourable Taxation System in Cyprus there also several considerable advantages regarding the Cyprus company registration Laws in Cyprus. For example, a Cyprus company formation can be made with full foreign ownership. A Cyprus private company requires only one shareholder and one director for the registration of the company while the nationality of the people holding the above positions is not subject to any restrictions.
Opening Holding and Investment companies in Cyprus is extremely favourable for the business, not only because of the E.U. membership but also due to a wide spectrum of benefits. Such benefits include the anonymity of the beneficial owners of the company, low operating costs, the provision of high quality standards of professional services in reasonable prices and the excellent telecommunication system.
Of immense importance is also the fact that Cyprus provides an excellent choice for relocation for families too. English language is widely and fluently spoken by the locals, the country provides a well organised health system and crime rates are significantly low. There are several approved english speaking schools and universities throughout the island and the local climate is pleasant. It is unquestionable that Cyprus enjoys a quite high standard of living.
Currently there are numerous Cyprus law offices, accounting firms and business consultants providing a high level of company formation services, attentive company administration services and professional consulting and guidance through the registration procedure. Businesses can trust the incorporation of an international business company in Cyprus to skillful and experienced professionals who are ready to timely deliver tailor made solutions to exceed business expectations.