Starting a business in Cyprus is an ideal, tax-efficient way to conduct international business, and portrays a positive image to customers, suppliers, investors and venture capitalists. International businessmen choose to set up a company in Cyprus for many reasons, e.g. as a holding company. The following information will help you make a decision on why starting a business in Cyprus will benefit you and your company.
1. Cyprus as a member of the European Union since May 2004, enjoys European standards of commercial and financial infrastructure, as well as a stable government, economy and legal system.
2. Starting a business in Cyprus is quick and simple as you will see.
3. When starting a business in Cyprus, a low corporate tax rate of 10% is applicable. Cyprus has signed double taxation treaties with more than 40 countries, many of which are developed eastern and western European economies.
4. After starting a business in Cyprus, a business bank account can be set up for you and a full set of annual accounts will be prepared and submitted to the Cyprus Tax Authorities and the Registrar of Companies at the end of each year. A Cyprus corporate bank account is available in multiple currencies.
5. A major tax advantage of starting a business in Cyprus is that losses incurred by a company can be set against profits in the future years for tax reasons.
6. An issue to take into consideration when starting a business in Cyprus is that worldwide income is taxable for Cyprus-resident individuals and corporations.
7. Entrepreneurs planning to set up a company in Cyprus should note that subsidiaries which have potential for significant capital appreciation may be held in Cyprus and sold without any liability to tax on the gain.
8. Entrepreneurs who hope to set up a company in Cyprus should note that Cyprus offers a favourable exit strategy under Cyprus law which allows payment of dividend, interest and royalties without paying withholding tax.
9. A Cyprus Company is particularly attractive for any fund or investment vehicle because securities transactions are not taxed, even if this is the Company’s core activity, a great benefit for those hoping to set up a company in Cyprus.
10. Cyprus is a reputable, politically-stable European country. A Cyprus corporate bank account is therefore a secure long-term solution with which to support a business on the island and internationally.
11. A Cyprus corporate bank account portrays an excellent image internationally, especially to your suppliers and customers.
12. As a member of the European Union (EU), Cyprus is a stable, regulated financial market. A Cyprus corporate bank account is therefore an attractive option for certain international Companies.