The usual authorised share capital of a Cyprus company is 5,000 EUR and the usual minimum issued capital is 1,000 EUR.
Statutory minimum paid up capital requirements
One share must be subscribed to at the date of incorporation but there is no requirement that this be paid up. There is no minimum share capital requirement under statute.
The following classes of shares are available registered (nominative) shares, preference shares, redeemable shares and shares with special (or no) voting rights. It is not permissible to have shares of no par value or bearer shares.
A minimum of one director required. An individual and corporate directors are permitted. None of requirements the nationality and residency of directors.
Minimum of one, maximum of 50 nominee shareholders are permitted as is holding shares on trust.
Due Diligence required on each Beneficial Owner (UBO) by providing documents and information as required for the incorporation of a Cyprus Company.
As a stable and neutral country, coupled with an EU and OECD-approved tax system and one of the lowest corporate tax rates in Europe, Cyprus has become one of the most attractive international business centres in the region.
For the Resident Companies
Resident Companies are the Companies whose management and control is exercised in Cyprus.
The Corporation Tax for Resident Companies is 1 %.2.5
For the Non - resident Companies
Non-Resident Companies are the Companies whose management and control is exercised outside Cyprus. The Corporation Tax for the Non-Resident Companies is Nil.
Companies are required to complete financial statements compliant with International Financial Reporting Standards, and certain companies must appoint an approved local auditor to inspect the financial statements.
All Cyprus companies are required to hold a yearly General Meeting and file an annual return with the Registrar of Companies. A return outlines changes that took place with the shareholders, director or secretary of a company.
Cypriot companies require a company secretary. If you need to establish tax residency for the company, your company needs to demonstrate that management and control of the company takes place in Cyprus.
Double Taxation Agreements
Cyprus has managed throughout the years to establish a wide network of double tax treaties enabling businesses to avoid being taxed twice on income earned from dividends, interest and royalties.
In accordance with the Cyprus tax legislation payments of dividends and interest to non Cyprus tax residents are exempted from withholding tax in Cyprus. Royalties granted for use outside Cyprus are also free of withholding tax in Cyprus.