Cyprus is an island located in the north eastern Mediterranean Sea at the crossroads of Europe, Asia and Africa. The capital city is Nicosia.
Cyprus gained independence from Britain in 1960 and adopt a presidential system of Government with elections for the President taking place every 5 years. In 1974 Turkey invaded Cyprus and has since occupied the northern 40% of the island. In recent years, access was allowed from the southern Cyprio held area.
The official languages are Greek and Turkish but English is generally spoken and is the language mostly used in business, government and the courts. Laws are based on the English legal system and company law is modeled on the UK Companies Act 1948. Cyprus got full membership of the European Union in 2004.
Cyprus Companies characteristics:
- Local Requirements
As a matter of local company law the company must maintain a registered office address within Cyprus and must also appoint a company secretary which, for practical reasons, must be resident in Cyprus.
- Restrictions on Name and Activity
Names must end with the word “Limited”. The following words and their associated activities can not be used: Assurance, Bank, Building Society or any other words consider sensitive or offensive.
- Companies’ Directors
A minimum of one director is required and details appear on the public file, but anonymity can be retained by the use of 3rd party directors.
- Shareholding
A minimum of one shareholder is required, whose details appear on the public file but anonymity can be taken by the use of a nominee shareholder. Bank references on the beneficial owners must be submitted to the Central Bank of Cyprus but these details are protected by secrecy laws. Bearer shares are not allowed.
- Taxation
Tax is charged on worldwide income at a rate of 10% on profit. As such, Cyprus is a low tax country rather than a no tax jurisdiction. Nevertheless, one of the great benefits of these companies is that Cyprus has signed a large range of tax agreements which can be held to avoid double taxation. Management & Control must be based in Cyprus and this can be attained by the provison of third party directors.
- Annual Reporting
An annual return which gives details of all those who have held shares throughout the year and the current directors must be filed. In addition, every Cyprus company must prepare audited accounts and submit these to the Central Bank and the income tax office.
- Secrecy
Although details of the shareholders and directors appear on the public file, details of the beneficial owners supplied to the Central Bank are protected by statutory secrecy provisions.
