Take Your Business to the Next Level
Imagine that you own a young business, successfully registered with Finexmo in a member state of the European Union and the eurozone. Here are some enticing opportunities that you have in this economic area:
- You can trade, offer services and transport goods across the entire European market without any restrictions.
- You do not have to pay any additional duties.
- You enjoy a high reputation as a participant in the European market.
And that’s not all. Read on to find out more benefits.
Tax Benefits for Cypriot Projects
You might think that taxes are expenses and nothing more. But in Cyprus, this is not the case. The Cypriot government has made this area more attractive for those who want to reduce business costs and increase investments in their project. Here’s how they did it:
- Cyprus has one of the lowest corporate tax rates in Europe, which is 12.5%.
- The country has gone through the effort of concluding a wide network of double taxation avoidance treaties, which covers more than 60 countries. This allows you to reduce or eliminate taxes on dividends, interest and royalties.
- The Republic of Cyprus provides Notional Interest Deduction benefits for innovations. This allows you to reduce the profit tax rate to 2.5% for 80% of annual profit. To do this, you need to meet a certain condition – finance your company’s work with your own capital, instead of resorting to loans.
But that’s not the end of the story. Cyprus will be able to surprise you even more.
Are You Working in the Field of Innovation? Register Сompany in Cyprus
You want to start your own business in Cyprus and specialize in promising research. This is an excellent choice, and here’s why. The country that has provided you with a hospitable platform for your field of work development is also ready to support your projects financially. You can:
- take advantage of the right to deduct 50% of your research and development costs;
- get a tax credit of 20% of your investments in innovative enterprises;
- apply for state grants or favorable loans;
- evaluate the Cypriot infrastructure for innovative business, which includes:
- technology parks,
- venture funds and so on.
Different Types of Companies for Different Scales
The type of company in Cyprus can vary. Its choice is an important decision for every entrepreneur planning to enter the European market. The outcome depends on your development strategy and the size of your business:
- For aspiring entrepreneurs, small projects or joint ventures, Private limited company (LLC) and Partnership are suitable. Their popularity is explained by the following factors:
- The minimum share capital is 1 euro or nothing at all.
- The minimum number of founders is 1-2.
Large players value other types of companies:
- Public limited company (PLC) has the following possibilities and requirements:
- The share capital is at least 25,630 euros.
- There are seven or more founders.
- It is necessary to appoint at least two directors and a secretary of the company, who cannot be the same person.
- Societas Europaea. This is an option for entrepreneurs from EU countries who want to have a single status throughout this area:
- The contribution to the share capital is at least 120,000 euros.
- There are at least two founders (there can be more).
- You can issue and trade shares and bonds of your company on the relevant platforms.
- You can easily move your registration from one EU country to another without liquidation.
What Documents Do You Need to Open company in Cyprus
The main documents are the Memorandum and Articles of Association. They are needed for registering the company with the relevant authorities, as well as for regulating the internal activities and relations of your company with external parties. Think them over carefully, because if you change your mind and decide to use your business for other purposes, getting a new approval from the relevant authorities can be a difficult and costly process.
You will also need a number of other documents, such as:
- an application for registering the company with copies of the founders’ passports and samples of their signatures;
- an application for registering the legal address of the company with a lease agreement or a certificate of ownership for this address;
- a permission to register the name of the company from the Department of Registration;
- a receipt for paying the state fee for registering the company. The amount depends on whether your company has a share capital or not. If it does, then the fee is 165 euros. If not, then 235 euros.
Finexmo: Your Financial Guide for Business in Cyprus
To save time and money on the registration process, as well as to avoid common mistakes when preparing documents and during the first days of running a business in Cyprus, contact Finexmo for consultation. Our team of financial consultants specializing in supporting small, medium and large businesses will provide you with a full range of services and expert support at all stages of your journey.