Archive for category Cyprus Company
This is one of the frequently asked questions we receive on a daily basis so we decided to make a block post about it for the public interest and the clients who consider to incorporate a Cyprus company but require more help and information before they are able to take a decision.
Foreign Nominee (director/shareholder)
When do I need a foreign nominee?
If you have incorporated your company in Cyprus and you personally don’t want to be listed on any public company register, and nor do you want to pay any corporate tax, then you will need to appoint a nominee shareholder and director who are NOT resident in Cyprus. This is a much more expensive service for a startup company; however, if you do your maths then you will see that you don’t need to make a very high profit before you have earned this money back several times over.
What are the downsides of a foreign nominee?
The company can’t be registered for VAT.
Your can’t get a tax certificate in Cyprus for the company.
Local Nominee (director/shareholder)
When do I need a local nominee?
It depends very much on what you are trying to achieve. Many clients want to avoid paying the high tax rate they have to pay in their own country and would rather pay 10 per cent corporate tax in Cyprus than perhaps 20, 30 or even more. In addition, a Cyprus resident company can obtain a VAT and TAX certificate and can also be registered for VAT, which for trading businesses can be a benefit and also necessary from a legal point of view.
It is cheaper for the client to appoint a local (Cypriot) nominee than a foreign one.
In simple terms, the European Union (EU) Citizenship is the complementary citizenship (referred to as “additional to national citizenship” in the Treaty on the functioning of the European Union) automatically granted to the nationals of an EU Member state. So in order gain EU citizenship, you have to be a national of any of the EU member States first.
Citizens of the European Union enjoy many of the associated rights including the right to move and reside feely within the territory of the member states. But, it is getting increasingly tougher to gain the citizenship of the most of the EU member states. This is partially fuelled by the concerned voices raised by the nationals of the EU member states in light of the high unemployment rate and the global financial crisis. One of the EU states which is actively promoting investment and immigration into its country is Cyprus. Cyprus offers Immigration Visas, which can be leveraged by the financially healthy individuals (/ their companies) of the Non-EU Nationals to move to Cyprus permanently with a view to gain Cyprus / European Union citizenship in due course. Of course, there are immigration policies that need to be complied with and these are set below. Please ensure you read and understand the requirements set out below if you are looking to immigrate to Cyprus.
When Cyprus Immigration approves you for a “Category F” Visa permit, you are automatically allowed to stay in Cyprus permanently, for an indefinite period of time – No need to apply for a visa or to reapply for a new Cyprus entry visa. While this offers a route to become a European Union (EU) Citizen, it is also true that Cyprus offers its unique advantages for a healthy and prosperous living through an advanced infrastructure, efficient professional services, highly qualified and multilingual labour force, favourable tax regime, lot of investment opportunities and one of the best climates in whole of the Europe.
If you apply for a Cyprus Category F permanent migration / immigration visa you automatically have the option to become a Cyprus Citizen (you can apply for Full Cyprus Citizenship in the sixth year of residency) which means you can travel to any European Union Country or European Member State and move freely in these Countries. You can also start up your own business, buy a new home and there are no restrictions. For example, if you become a Cyprus Citizen you are free to move permanently into the UK and you will no longer require a visa to get entry into the UK. Cyprus Category F visa also allows your dependants to be included and therefore your whole family can move to any part of Europe e.g. UK (as mentioned in our previous example). In essence, you are also free to further migrate to UK, Germany, Ireland, Spain or any other European Member state Country, if you wish to.
We would suggest you speak to Prosperous Consultants Immigration Visa Specialists in Cyprus who will be able to give you all the advice on how you should proceed.
For further information please contact us
In accordance with the Cyprus Tax legislation, every company must make every year a provisional tax assessment for the current tax year and pay the provisional tax in 3 equal installments – on 1st August, 30th September and 31st December.
Therefore, please inform us as soon as possible, if your expectations, whether you will have a taxable profit for the year 2010 and if so, to submit the computation of temporary tax assessment together with the 1/3 of the provisional tax on 1st August.
Failure to make a tax provision of at least 75% of the final year’s taxable profits will result in payment of an additional tax of 10% on the difference between final tax and provisional tax. Failure to pay the provisional tax on time will result in an 8% interest payable on overdue tax.
The installment payable on 1st August can be paid until 31st August 2010 without any interest charged. It is possible to revise an assessment upwards before the end of the year.
Thanking you for your kind co-operation at all times.
CCLOGIC Ltd – Cyprus Company Incorporation
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