The Commonwealth (formerly known as the British Commonwealth) is an organization made up of 54 member states that were once a part of the British Empire ruled by the monarch of the time during what is famously referred to as the colonial era. As a member it shares the same values with the other 53 member states in as far as issues of good governance, human rights, free trade and world peace is concerned. In addition, it is one of only two member states of the Commonwealth whose official language is not English. This however does not pose any hindrance or act as a disadvantage to any company or companies (English speaking or not) that may wish to do business in Cyprus.

It is an island known worldwide for its sandy beaches, beautiful scenery and near perfect weather all year round. For decades, it has and continues to serve as one of the world’s popular holiday destinations. It joined the European Union, a political and economic union with 27 primarily European member states, on May 1, 2004 and this opened up new avenues of business for this island nation.

In Cyprus, several tax incentives are available for any offshore company that is willing to open and run its business on this island nation. Within the European Union, Cyprus has the lowest taxation charges in a country that is not considered to be off shore. The standard corporate tax in this nation is 10 percent. For shipping of goods, Cyprus has a very attractive percentage tax of zero percent (0%), which is truly unbeatable. The maritime management companies that are responsible for this shipping are taxed at 4.25 percent.

This is also on record as being the lowest taxation rate for maritime management companies as well as corporate companies in the European Union. These taxes and many others can be reduced by using the various management options available to off shore companies in Cyprus. Different types of contracts can also be put together by the company or companies in question to reduce the amount of corporate tax deductible even further. This beautiful island nation that has Turkish listed as one of its official languages is also considered a premier destination for finance companies, holding companies, and royalty trading companies. It is a not only a friendly nation but an investor friendly nation and one of the best places on earth to run a successful, profitable company from.

In Cyprus, company incorporation starts with the business name. You send a suggestion of business names to the registrar and after they are approved, you meet the other standards that are set for companies. These include having a physical address in form of a building or office. The physical address could be a plant if it is a manufacturing company. The premises of the company must be inspected to ensure that they are fit for operation. Together with the inspection of the premises, the company management must get licenses for operation in their respective councils.

In Cyprus, a company must have a minimum of one director, one shareholder, and one secretary. This makes sure that it fits the definition of a company as required by the civic law of the land. The work of the director is to make decisions and he acts as the point of reference in any case that concerns the company. The government demands the company gets a secretary so that at any one time when it is operation time for the company, the physical address of the company has someone who the government can refer.

A company in Cyprus is expected to file its tax returns with the income tax department and before a company is incorporated, it has to submit a tax certificate of registration and an affidavit that acts as proof that the management of the company have agreed to pay tax on income at the rate of 10% for corporate. The affidavit is issued by a court of law and it acts as an oath of compliance. Many company titles require consent before they are registered and these are mainly related to the professional practitioners like doctors, teachers, and pilots. Cyprus restricts operation of foreign companies as banks, financial institutions, and insurance institutions.

There are no government charges for company incorporation. The process of incorporation takes a week at most. The law of Cyprus requires the company proprietors to submit the financial statements at the end of the financial season. This is sworn in the affidavit that is presented at the registrar of companies’ office as a way of declaration that the management has agreed to submit the information. This information is important to the government so that it can calculate its GDP and confirm that the tax returns are genuine. On completion of the incorporation process, a certificate is offered to the company as a sign of compliance.

Cyprus Company Formation
|Cyprus Bank Accounts| Offshore Company Formation