A LOW TAX SYSTEM IS POSSIBLE ALSO IN THE EUROPEAN COMMUNITY: LTD COMPANIES IN CYPRUSi

If you’re willing to start your business in Europe,then open a ltd company in Cyprus
is the best solution to your problems as for the choice of jurisdiction. This company, that will let you work also outside EU, will enable you to pay taxes regularly, with balance at the end of the year, by avoiding high costs of constitution, maintenance and accounting. In Cyprus, company tax rate is equal to 10% and it’s considered the lowest of all EU. Furthermore, there are also great tax benefits about royalties, dividends and interests.
Here below we list the main purposes of Cyprus limited company:

  • Online as well as offline operativity.
  • Purchase and selling of IVA free products(art.41 Community Guidelines on VAT), but also storage of goods in another community country, and so on).
  • Ownership of vehicles with IVA, tax and insurance at reduced prices.
  • Trading or import/export company.
  • Holding of licenses, brands or websites.
  • Online and offline software realization.
  • Provider of different kind of international services.
  • Shareholder of other legal persons worldwide.

Cyprus makes available a wide network of conventions against double impositions with many countries, thus avoiding that the dividends from European companies, in favor of a Cypriot Ltd, are object of imposition in the operative jurisdiction.
A Cypriot Ltd, then, provides its owners also with advantages like:

  • Administration by a unique Director (natural person).
  • Shareholding made up of natural and legal persons.
  • Diversification in the capital bestowal, with no obligation of advanced payment: eventual responsibilities of the shareholder are limited to the portion of unpaid capital.
  • Company Statute with generic purpose, for any kind of activities (as long as legal).
  • Shareholders’ assembly or board of Directors chaired by personal participation or delegation to third parties.

Our suggestion is to give in trust LTD shares, so to rely on shares or offshore company trusteeship. UK LTD companies, are normally equipped with European VAT number (tax rate at 15%), and tax code, easily verifiable on VIES portal.

Import-export. As for international tax planning, a Cyprian Ltd can be used for commercial triangulations, e.g. through the selling of goods at lower costs by an export company, thus enabling Cyprus to resell them to other countries at higher costs.
In this way, the companies could gain major profits in Cyprian jurisdiction, thus reducing tax burden that, with a tax rate of 10% on the profits, would allow great tax savings.
Furthermore, a Cyprian Ltd enables to solve the problem of VAT retention, as well as self-funding, through the trade with other EU countries.

MAIN CHARACTERISTICS

Descriptions Costs
Cyprus company Incorporation with a capital of 5.000 €

(Constitution, VAT Register, bank account, Agent, Director and shareholder for the first year).

€ 6250
Annual renewal of the company
(Agent, Director and shareholder).
€ 2500
Audit of a Cyprian non-active company € 1000
Audit of a Cyprian active company Variable cost on the basis of number and transactions and the total of them.

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