A Cyprus company, if structured correctly, can provide a tax-efficient way to conduct international business. The following information will help you determine whether a Cyprus company formation is the optimum corporate structure to fulfill your international business objectives:
Advantages of Cyprus Company Formation include:
- Cyprus company formation allows entrepreneurs to legitimately conduct business in Cyprus and internationally subject to a corporate tax rate of 12,5%, among the lowest rates in the European Union (EU). Furthermore, Cyprus is positively ranked as the world's 20th freest economy in the Heritage Organisation’s 2012 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
- A Cyprus company incorporation can be made with 100% foreign ownership. For a Cyprus private company, a minimum of one shareholder and one director is required for company registration. Corporate shareholders and directors are permitted and can be of any nationality.
- Dividends paid to a Cyprus resident company are exempt from corporation tax, whether they are received from a foreign company (subject to certain conditions) or another Cyprus resident company. There is also no withholding tax on dividends that are repatriated to a non-resident shareholder individual or company.
- A Cyprus company can benefit from double taxation treaties with almost 50 countries, including; Canada, Russia, Poland, China, France, India, Ireland, Singapore, South Africa, the UK and the US, further adding to the potential benefits of a Cyprus company formation.
- A Cypriot company is ideal for holding and investment purposes.
- Once we have assisted with Cyprus company formation, Yama Holdings Ltd can open a corporate bank account with any of the Cyprus banks or with one of the world's leading retail banks.
- Forbes Tax Misery Index 2009 rated Cyprus as having the 6th lowest tax misery in the world. The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent.