With Cyprus making its effort to expand the financial bonding, it is a direct sign that you will also have a legit way of making some good financial investments by becoming part of it. But investment simply doesn’t assure you the complete capability of understanding the ins and outs. And any investment made without the proper knowledge on the subject is more or less threatening to your investment entirely.
Before taking any investment decisions, there are a few factors that you should take into consideration. Out of all the other issues, Tax planning is one of the most valuable and noteworthy factors. A proper tax planning may end up with great and valuable rewarding sessions. On the other hand, ignoring that fact may end up making you fall into huge financial crisis and enforcement issues along with the company associated.
Putting your faith in matters of tax on the Cyprus company formation is a good way to make sure that you don’t get stuck on any loopholes. With all the better factors and attractive incentives that Cyprus offer, it has now been declared as the most profitable business setup in the world with many success stories witnessing them.
There were two categories of companies taken into consideration for business. One of them was the off shore and the other was the overseas. But with the new initiative, the differentiation is eliminated. The overseas companies have a decreased level of tax at 4.25% in their business. Now the standard procedure of tax is done at 12% for all the companies. Even considering 12.5%, the rate of tax is the lowest in the entire Europe.
If you want company formation in Cyprus, there are a few steps that you should take. Below are the following measures necessary for you to take in order to set your company.
1. Approval of your company’s name from the Registrar of the companies
One must submit his application for in a conventional way to One Stop Shop Cyprus via email or personally. You can also use the E-filing website for an e-filling procedure. An EUR 30 charge will be charged. In that charge, the EUR 10 is for processing and mandatory and the remaining EUR 20 is for the fast processing and is optional.
2. Article and Memorandum preparation by a lawyer:
The memorandum and article must be prepared according to the terms of the company law. For such measures, one must understand the necessities and is best if they take the help of a lawyer. The lawyers at the Cyprus company formation will make sure that you have all the things cleared out. After they determine, they will put their signature on it and will pass the document. The charges for this entire procedure are 1000 Euros.
3. Submission of documents at the Department of Registrar of Companies and Official Receiver
The procedure will take a time period of 2 days and will have a mandatory charge of EUR 205 registration fees + 0.6% on the capital authorized + EUR 220 for the certification.
4. Register at the Tax Department for tax
5. Register at the Tax Department for VAT
6. Register for Social Contribution at the Ministry of Labor, Welfare, and Social Insurance
After you have all the formalities approved, you can now have your company set up with all the benefits of working on a progressing business environment.
All the company formation Cyprus must come under the subjected Company Law under British Companies Act of 1948. Below are the following considerate factors.
Private Company Limited by shares
Considered as one of the most popular company categories throughout the entire country, the privilege with this country is that you can start it alone.
Private Company that is Exempt
This is a special case company which is formed by incorporating with another company with a maximum number of fifty debenture holders in the company. There are no statutory restrictions on such companies regarding loans and directors.
Company Limited by Guarantee
This is a non-profitable and charity based company category and the liability of the company is guaranteed by a special memorandum.
Overseas branches of a company in Cyprus
Any overseas company may open a branch and will be helped by the government to promote foreign investments directly in the country. Documentation in Greek must be completed and then the company will be eligible to open the branch.
A company with at least 7 shareholders and 2 directors are mandatory. The share capital amount must be a minimum of Euro 25,630 with a confirmation before the trading certificate.