Posts Tagged cyprus
Cyprus company and a Nominee, Foreign or Local?
Posted by Offshore Expert in Cyprus Company on August 24, 2011
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.
For more information about how to incorporate a company in Cyprus and to open a Cyprus bank account feel free to visit CCLOGIC Ltd who is one of the leading Company Service Providers on the Internet.
Cyprus Company Incorporation 2011 – why Cyprus Company?
Posted by peter in Cyprus Company Formation, Holding Company on January 6, 2011
First of all I whish all our readers a happy new year 2011, we want to start this year by quickly outline the different benefits a Cyprus Company has compared to many offshore jurisdictions.
A Cyprus Company can be registered for VAT (actually the rate is 15%) this is of the benefit for the owners and the companies business customers because they are able to deduct the VAT they have paid to your company from their local VAT amount they have to pay to the local VAT / Tax office. Further Cyprus has the lowest VAT and Tax within the European Union which is from a competition point of view a great advantage since you can offer your services and goods to a lower price than your competition in other EU countries can.
A Cyprus Company only pays 10% corporate TAX which is the lowest in the entire European Union, again from a competition point of view it is a great advantage since the company will be able to reinvest more money into the business activities or to the owners in order to be more profitable and to grow, then the competition in other EU countries.
A Cyprus Company don’t pay any tax on Interest or Dividends, means more profit to the owners, further it is allowed to make loans in a Cyprus company which is not allowed in almost any other EU company.
Cyprus has a Double Tax Agreement with the Seychelles which means the company has to pay tax in the Country of operation, so towards your clients it can look like it is a European Company they do business with but structured correctly it is a Seychelles company, so the operation has to be managed in the Seychelles which is properly not an issue to prove, since the tax rate in the Seychelles is 0% the corporation has no tax to be paid.
With a Cyprus Company the owners comply to European Laws which means more trust to your company compared to any Offshore jurisdiction like Panama, Belize, St. Kiits etc. – it also means that the Cyprus company avoid to be on different governments radar while doing legal business, this also towards the banks who have to transfer money to the bank from customers who bought a service or products from the company.
A Cyprus Company can help you to grow your wealth if structure right, no other country will offer you that benefit that’s why Cyprus is the most popular jurisdiction even in 2011 to do business.
A Cyprus Holding Company has a lot more to offer than just the above mentioned, for instant if the goal is to make huge profits but at the same time to achieve Asset Protection then a Cyprus Holding Company offer you all this, do you for instant know that it costs a lot of money to try to sue a Cyprus company for any reason or to try any debt collection? – No this is not known by many, but compared to for instant UK, Germany, Sweden or Denmark where you can get a court order for almost free in order to collect your debts then it costs a fortune for the creditor to collect those money. Also all asset’s in a Cyprus Holding company are “moveable” means you can if done right move your assets to another company so that if a creditor should penetrate the company in question there will be no assets.
A Cyprus Company can be structured by using Nominee Directors and Shareholders 100% anonym, that’s not possible in most other European Countries and one of the strongest benefits Cyprus has to offer.
Why do I need to be anonymous?
The reasons are many, it could be in a process to take over a competing company but where the real buyers want to stay anonymous to avoid any complications in the take over. It could as well be that the owners have a business running to 1 target group of industries as retailers but as well want to be Whole Sale for the competition, who would buy from a competitor if they know? – no one will so it can be of benefit to have the ownership of the Whole Sale company to be anonymous, in order to get the business from the competition. These are only a few reasons, as first mentioned there are many more.
Most important is that regardless what the purpose of the Cyprus Company is, you are always in front of your competition.
We hope you enjoy reading, stay tuned to the next publication.
Did you know that there is a Offshore Company Forum available where you can ask questions but as well read about others experience, issues and much more, forums are born to help the public, so use it this opportunity to learn more and be prepared to take out your competition or simply start a profitable business.
Tax Submission for 2010 for Cyprus Companies
Posted by peter in Cyprus Company on July 26, 2010
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
Incorporation of a Company: Why Cyprus?
Posted by Offshore Expert in Cyprus Company Formation on February 11, 2010
Cyprus is an upcoming country in business and it is an ideal country for investing. Like any other country, most of the citizens live around the towns and cities. Out of a population of 700,000, 200,000 live in the urban areas. The growth rate is not high in the country though the weather is favorable. Read the rest of this entry »
Things to Remember while Incorporating a Company in Cyprus
Posted by Offshore Expert in Cyprus Company Formation on February 10, 2010
Cyprus is an island in the Mediterranean Sea. It is the largest island and is home to over 700,000 citizens. Most of the citizens in Cyprus are businessmen while the rest work for the government. The process of incorporation of a company in Cyprus will require a number of things. Read the rest of this entry »
Incorporate Cyprus Company
Posted by Offshore Expert in Cyprus Company Formation on February 9, 2010
Cyprus, a country to the west of Syria and Lebanon, is a country that has many things to offer both the individual and the company within its jurisdiction. For the individual that wishes to open a company or companies there are many areas that are of significant importance. Read the rest of this entry »
Register Cyprus Company – Things Needed
Posted by Offshore Expert in Cyprus Company Formation on February 8, 2010
The recent days, the centre of business attractions is being concentrated towards the Cyprus. Cyprus is an island existing on the eastern Mediterranean lying in between the three major continents of Asia, Africa and Europe. All these three major continents are already started emerging as business continents Read the rest of this entry »
Register Cyprus company – The registration process
Posted by Offshore Expert in Cyprus Company Formation on February 5, 2010
Rapid development:
Among the three continents lies the company lays Cyprus, which is the birth of many new companies. The land and its resources gives it the maximum advantage to be the leading business networks every to be formed. Read the rest of this entry »
Register Company in Cyprus, an Emerging Business Hub
Posted by Offshore Expert in Cyprus Company Formation on February 4, 2010
Cyprus is an emerging business hub, which gives space to many foreign business companies to establish their firms. As per geographic location, Cyprus is a crossing point between Asia, Africa and Europe, which makes suitable for many International Business Companies to set their offshore company Read the rest of this entry »