Corporate Services
Choosing the right vehicle with which someone will be operating its business is important, since several factors must be taken into consideration in selecting the appropriate vehicle. In most cases both Cypriot citizens and foreigners alike choose a Cyprus Private Company as their vehicle. The reasons are the limited liability of the shareholders for the debts and obligations of the company, the fact that the company can be incorporated with the same person as shareholder and director and the low corporate tax rate of 12.5% on the profits of the company wherever they occur, as well as the statutory deductible expenses that reduce the taxable income of the company.
Our firm can advise you on the most advantageous way of doing business. The following services among others are offered by our law firm.
1
Incorporation of companies
In Cyprus the incorporation of companies is a controlled procedure which is carried out exclusively by law firms. The vast majority of companies incorporated in Cyprus are private companies with share capital. The time to set up such a company today is between 10 to 12 days.
2
Partnerships
In Cyprus, general or limited partnerships may be established, the main difference being that in limited partnerships only one person will have unlimited liability for the debts and obligations of the partnership and the liability of the others will be up to the amount of their share capital. The main advantage of the partnership is that while its income/expenses from an accounting point of view are the income/expenses of the partnership, the profits are taxed in the hands of the partners, since there is no income tax in partnerships as in companies. Each partner will pay income tax on the profits attributable to him as an individual.
3
Branch Registration
It is the alternative to the incorporation of a Cyprus Company if a Foreign Company wants to conduct business in Cyprus. Registering a Cyprus branch gives the advantage to a Foreign Company to operate through the Cyprus branch. The income arising from the Cyprus branch will be taxed at the Cypriot corporate tax rate, and no additional tax is payable on the transfer of profits to the Foreign Company.
4
Redomiciliation
It is another alternative to setting up a new company in Cyprus. With this procedure foreign companies that wish to relocate can do so and thereby become Cypriot companies.
5
Trade Names
It is the name under which a natural or legal person in Cyprus may operate and should not be confused with the trademark which refers to Intellectual Property and concerns the logo of a business that has nothing to do with the name under which a business or natural person operates. The registration of a trade name can take from 10 to 12 days. By registering a trade name, the natural or legal person may conduct its business under the trade name and issue invoices and receipts under the trade name. The only advantage of registering a trade name is the registration of the business name and no other advantages are given in relation to taxation or the liability of the business owner.
