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Corporate Entities

Enterprises may be registered in Cyprus under the following legal forms:

  • Company Limited by Shares
  • General or Limited Partnership
  • Branch of an Overseas Company

The new taxation system abolishes the differentiation between local and international business. International business companies will be entitled to trade within Cyprus and do business locally with the opportunity to offset losses from abroad against net income from Cyprus.

Business Incentives:

Companies registered in Cyprus but managed and controlled from abroad (non-resident companies) will only be taxed in Cyprus on their Cyprus-source income. They are exempt from tax on foreign dividends and interest and income from any permanent establishment abroad as well as all foreign tax credits and offsets of losses incurred abroad. They will not be entitled to benefits under the double tax treaties, but however will not be subject to the exchange of information rules under such treaties.

The new taxation rules adopt UK legislation on reorganization, thus extending the EU Merger Directive to any reorganization involving a Cypriot tax-resident company, allowing it to benefit from favourable tax treatment to facilitate transfer of assets and tax losses and providing exemption from capital gains tax, income tax, VAT and stamp duty.

All the above benefits make Cyprus an ideal place to locate a holding company which will be able to take dividends out of the operating company free of withholding tax or at a lower rate of withholding tax, either by virtue of the extensive double taxation treaty network which Cyprus has or under the EU Parent/Subsidiary Directive. In addition to this, the holding company will enjoy the tax exemption of dividends and capital gains from local tax, as well as take dividends out of the holding company without giving rise to any tax charge in the holding company’s jurisdiction.

A great number of other important factors have made Cyprus an attractive place for the establishment of corporate entities. Among such factors are the geographic location of Cyprus, its infrastructure, the international relations of Cyprus, the legal system of Cyprus, the high standard of living, the hospitality and competency of the Cypriot people etc.

Mouaimis & Mouaimis are able to provide for any type of Corporate Enterprises in Cyprus and to offer to our clients a comprehensive and reliable range of legal and administrative services.

We will be able to provide you with any information in relation to the legal or any other requirements with regard to the registration and maintenance of any type of enterprises in Cyprus as well as the costs and legal fees involved.

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