The Republic of Cyprus is located in the Mediterranean Sea. The country is a member of the EU. The official language is Greek, English is widely spoken. It is one of the most popular offshore zones, especially among entrepreneurs from the CIS, especially Russian and Ukrainian ones, even after the 2013 revision of the Tax Convention, which increased tax rates and tightened capital requirements.
Advantages of the jurisdiction of Cyprus
Let’s first highlight two main advantages:
- Cyprus is a member of the EU, therefore, companies registered are subject to all the benefits of the European Union – the ability to open an account in any European bank, trade with another European company at a single European VAT rate. Plus, a much higher image among clients compared to companies that are registered in any classic offshore, for example, in Belize, Seychelles, etc.
- Cyprus has a double taxation treaty with over forty countries, including Russia, Ukraine, Belarus.
Now about tax benefits:
- corporate tax rate – 12.5%;
- income tax received from various transactions with shares and securities – 0%;
- Income tax on dividends received in Cyprus and abroad – 0%.
Now for the other benefits:
- High quality accounting and consulting services.
- Excellent infrastructure.
- Convenient geographical location of the island;
- Stable political and economic environment.
- Fast and clear procedure for registering a company.
- No requirements for the authorized capital, maybe 1 euro.
- The minimum number of shareholders is 1 person, the minimum number of directors is 1 person, may be a non-resident of Cyprus.
Features of the functioning of the company in Cyprus
- The company must report to the tax authorities of Cyprus annually submitting the following documents:
• audited financial statements;
• statistical report to the register of companies;
• tax return.
- An annual fee of 350 euros is payable.
- The presence of a secretary is required.
- The presence of a physical office in the country is required.
The procedure for registering a company and opening an account in Cyprus from 321Broker
- Selection of the name of the company and verification of the possibility of use (the name of the company can be in any language, but written in Latin, at the end the word Limited is obligatory, the name should not contain the words European, International, National, European Union, Euro).
- Securing the name of the company in the Register of Companies.
- Completion of the KYC questionnaire by the beneficiary.
- Submission of documents to the beneficiary Due Diligence (passport, confirmation of registration).
- Development and approval of the company’s structure (composition of shareholders, directors, secretary, company office address).
- Signing of the Indemnity Letter by the Beneficiary.
- Apostille of documents (memorandum and four certificates) received from the Register of Companies.
- Execution of other documents – power of attorney, trust declaration, etc.
To open an account, you need:
- Providing convincing KYC documents (to prevent money laundering).
- Documents substantiating the source of income of the beneficiary.
- Account statements from other banks.
- Tax number of the company.
Also, the bank may require other documents. For example, letters of recommendation, links to public information about the company’s activities, etc.
Our company 321Broker recommends opening an account with the following Cypriot banks:
For Cypriot companies, we accompany the opening of accounts in the following banks:
- Bank of Cyprus;
- RCB Bank;
- Alpha Bank;
- Hellenic Bank;
- Eurobank Cyprus Ltd;
- Astro Bank.
Our company has over 10 years of experience in providing services for brokerage companies. We consider the creation of a turnkey brokerage company to be our most interesting service for our clients. It includes:
- Company registration.
- Opening a bank account.
- Getting a brokerage license.
- Creation of the technical base of the company:
• a site with traders’ personal accounts, connected trading platform, payment systems, liquidity providers;
• CRM for effective interaction with traders.
By ordering us to create a turnkey brokerage company, you are guaranteed to receive it in the shortest possible time and be able to do a highly profitable business in the forex market. We guarantee our clients the legal perfection of registration documents for the company, complete confidentiality, favorable prices.