| Legal System | Common law. The established system of national substantive and procedural law, formed under the influence of English common law, with additions from the local legislation. |
|---|---|
| The System of the Common State Registrar | The company records (name, registration date, shareholder, director, secretary, address) are kept by the public registry. The registering authority is Department of Registrar of Companies and Official Receiver. |
| Registration Procedure | Documents are submitted to the Registrar via internet. |
| E-Registration | Available. |
| Pre-incorporation Procedures (statement of compliance, affidavit, etc) | Prior to registration and affidavit at the court by a licensed lawyer is required. |
| Company Name | Prior approval of the name is required. The name may be in Greek or in a language that uses the Latin alphabet. Company name must be ended in LIMITED or LTD. The words "Corporation", "International", "Group", "Financial" etc. are not allowed. |
| Incorporation Documents | Memorandum & Articles of Association. Original documents shall be drawn up and kept in the Greek language. A client receives the English translation, certified by the Registrar. |
| Share Capital | The minimum share capital is not specified. Most common: EUR 1000 divided into 1000 shares with par value of EUR 1 each. Bearer shares are not allowed. |
| Beneficial Owner | The beneficial owner can be any physical person. Information about the beneficiary is not reflected in the Registrar. |
| Shareholder | At least one shareholder (physical person or legal entity). Maximum of 50 shareholders for private companies. Transfer of shares into trust and use of nominee shareholder is allowed. |
| Director | At least one director. Maximum can be defined by the Articles of Association. The director may be a physical person or a legal entity. It is recommended that the appointed director be a Cyprus resident. (In case of the Board of Directors, the appointment of 50% of the Board of residents of Cyprus is recommended). |
| Secretary | A secretary is required. A local physical person or a legal entity must be the secretary. |
| Registered office | A registered office in Cyprus is required. |
| Residency | Is determined by the place of management of the company. |
| Income Tax | 12,5% |
| Taxes on Dividends | 0% (under certain conditions) |
| Taxes on Capital Gains | 0% |
| Taxes on Interest | 12,5% |
| Tax Withheld at Source | None. |
| VAT | 19% |
| Specific National Taxes and Levies | Annual Levy – EUR 350. Special Defence Contribution Tax - imposed only to Cyprus Tax residents. |
| Reporting | Each year is fully reported in accordance with the IFRS. |
| Audit | Mandatory annual audit and reporting to the tax authorities and Registrar. |
| Cost Accounting Rules | Costs must be justified and documented. |
| Tax Administration | Formal, in accordance with the requirements of the law. |
| Use of Tax Treaties | Over 45 countries, including the Russian Federation, the countries of the EU, the United States, the United Kingdom. |
| Terms of Use of Tax Preferences | Tax residency. |
| Controlled Foreign Corporation in Jurisdictions with Low Tax (CFC) | Income of controlled companies registered in low-tax jurisdictions are not included in returns, and the use of such companies is not a reason for refusal of the application of tax exemption. |
| Disclosure of Information | There are official channels of information disclosure. Information about beneficiaries is revealed by the decision of a Court or general prosecutor. |
| Language | Communication with public authorities, courts and banks may be in made English. The majority of documents are available in English. |
| Registration of Company | From EUR 2 000. |
| Administration of Company | From EUR 1 000 per year. |