Entity of a Cyprus Ltd Company
Cyprus Limited Company: Registration and Procedures: What is a Cyprus Limited Company or Cyprus Ltd as it is called? How do you register a Cyprus Limited Company? Is a Cyprus Limited Company a common company? Can a Cyprus Limited Company carry on trading as any other company or does it need a special license? Can I open a bank account for a Cyprus Limited Company? These and many other questions are asked of us in the letters send to us with requests for the registration of a Cyprus limited company. In fact the Cyprus limited company is exactly the same company as the offshore company or the holding company or the investment company. Below you will see some of the most basic characteristics of the Cyprus limited company.
A Cyprus Limited Company offers many tax advantages. It is the most common legal entity preferred in Cyprus. It is a private company limited by shares. This means that the liability of its members i.e. the shareholders is limited to the amount they each contribute into the company`s capital by buying shares. So if a member buys say €1000 of shares and the company goes bankrupt he is responsible to pay €1000 only to the creditors of the company or better to the official receiver of the company and that is if he has not already paid for the shares he has bought. if he did then he pays nothing else to the company`s creditors.
His other personal property is not liable to confiscation by the courts. This is the big attraction of a Cyprus limited company. The directors and the secretary of the company are not liable either for the debts of the company, unless they have expressly undertaken a liability or unless by their actions can be made responsible for them.
Cyprus Limited Company Registration
Cyprus Limited Company: Registration and Procedures: A Cyprus limited company registration is done usually by distance. Presence is not necessary. The provider entrusted by you to do your company registration acts through fax, email and courier to register your Cyprus ltd in your absence and in a few days.If you need to register a Cyprus limited company then you must choose a name for it, also a director and a secretary and finally appoint the shareholder. You can use nominee persons in the place of these key positions. Also you must specify the size of the capital of your Cyprus ltd as this is important to issue shares to the shareholders.
Such capital does not have to be paid at the time of the registration of the Cyprus ltd but the shareholders will owe this money to the company. The Cyprus limited company registration will be completed usually in a few days and the company kit with all the registration certificates will be dispatched to you by courier. Thus the Cyprus ltd is now a new legal entity ready to trade, to buy a car or a house , to buy and sell shares or to invest in gold or other precious metals. It has the same rights and liabilities as a physical person except that is doesn`t die. A Cyprus limited company can live for ever!
It does not have any difference from all the the other types of Cyprus IBC. They are all `companies`. The words trading or holding or offshore are only descriptive adjectives qualifying the use for the Cyprus Limited Company. The formalities for its incorporation could not be more simple. You can visit our page on the subject of how to register a company by following this link or on the subject of the Cyprus Company Registration and Formation. The setting up of a company is fast, fuss free and can be done in your absence.
Below we list some of the formalities for the Cyprus limited company registration:
- Choose a name for your company. Our firm will submit it to the Cyprus Company Registrar for approval. A name must not have offensive words in it, must not be the same or very similar to one already existing, must not have the name of a country or a town in it because it may be misinterpreted e. g. New York Services and must not be very vague or misleading in any way.
- Send us a copy of your passport.
- Send us your residential address.
- Fill in a CV.
- Nominate the director (a nominee director can be used).
- Nominate the Secretary. A local secretary can be used.
- Fix the volume of the capital. Usually a capital of 1000 shares of one euro each is issued.
- State a registered office address. Usually the address of your provider is designated as the RO of the company.
- Fill in the know your client questionnaire.
- Send us a utility bill of not more than 3 months old.
- Pay the fees.
Basically this is it. Your presence is not necessary to have your limited company registered. Our company will do everything for you through fax, email, and courier. The company will be set up in about four to five working days. As soon as it is registered we will compile a company kit for you in which we will file all the incorporation documents, the memorandum, deed or trust, share transfer agreement, resolutions, power of attorney, letters, notices etc and we will courier it to your office by FedEx or DHL. Our fees for doing all this for you are very reasonable and cost effective. We offer various company formation packages in our website and we also state most of our fees as we always act openly and honestly to our clients. There are more articles on the subject of limited company formation generally which will help you to understand the formalities required for its formation, the tax benefits, the formation fees, the maintenance costs, nominee directors, nominee shareholders, procedures etc. you can go to Cyprus Company Formation.
A Cyprus Limited Company Used As A Trading Company
A Cyprus limited company can be used in the so called triangular trade with great success. So if the trader is resident in Germany he can use his Cyprus limited company to order goods in China for a client in Belgium. Those goods will in fact never arrive in Cyprus. They will be delivered directly to the warehouses of the client in Belgium. Therefore no vat tax will be paid in Cyprus, nor any other taxes or custom duties. Costs are also saved on logistics. Of course the value of the goods is paid to the Cyprus company and it ends up in its account which can be in the country or in some other country. The transfer of money in and out of the country is completely free. So any money in the company`s account can be freely used to buy the next shipment of goods or pay bills, wages, salaries, taxes etc. In cases where an EORI number is necessary we can secure one for you in no time. Also a vat registration number can be secured for you very fast. The benefits to you of using a Cyprus limited company are great. They are so overwhelming that once you get to know the ropes you will be wondering why you did not hear about this before.
Quick List of The Tax Benefits of A Limited Trading Company
The following are but a few of the many tax and other benefits of a limited trading company used in triangular trade. No other country offers so many and so big benefits apart from the no tax jurisdictions but that`s a different story! The tax environment in Cyprus for the foreign investors is very friendly and very large. The government is also trying with various programs and plans to assist all it can. The services are of very high standards and the human resources are rich with professionals of all denominations. Here are the main tax benefits for a Cyprus limited company trading through Cyprus.
1. Corporate tax is only 12.5%.
2. No tax on dividends paid out.
2. No tax on dividends earned.
4. No tax on profits from the disposal of immovable properties abroad.
5. No tax on revenues from businesses curried out abroad, like a hotel or a restaurant.
6. No tax on gains from the sale of shares or other securities in the country or out.
7. Only 2.5% tax from rights on intellectual property such as trade names or patents, music, films etc.
8. No tax on the inheritance of any shares or other securities.
Quick Facts For Cyprus Ltd Company
1. It must file with the Registrar form HE 32 every year, together with Financial Statements.
2. It must keep audited accounts and file them with the Inland Revenue once a year.
3. It must register with the Income Tax Authority within 30 days of its incorporation.
4. It must pay its renewal tax to the Registrar once a year of 350 Euro.
5. It must have at least one Director, one Shareholder and one Secretary.
6. It must keep its Registered Office Address in Cyprus.
7. Its file at the Cyprus company register is open to public inspection but the name or details of any Real Owners do not have to be revealed.
8. A Cyprus Limited Company`s shareholders do not bear any liability for the company`s debts.
9. Foreign persons and foreign legal entities can be shareholders of directors in a Cyprus limited company.
10. It can trade in Cyprus and abroad without any restrictions.
Form more information on this type of company and its rights or obligations our company experts will be happy to give you free advices. Call us or email today for your Cyprus company and get as much free advice as your require. Trusting us you are trusting the experts to make you feel safe.
+357 24 656 406
+357 24 656 406
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