| LLC | Holding LLC | Free Zone Company | PLC | Branch | Rep. Office | |
|---|---|---|---|---|---|---|
| Local Name | 5 days | 10 days | 10 days | 10 days | 15 days | 15 days |
| Company Setup Time | 5 days | 5 days | 5 days | 5 days | 5 days | 5 days |
| Bank Account Opening | Yes | Yes | Yes | Yes | No | No |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Limited Liability | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Cyprus Limited Liability Company (Limited Company)
- LLCs must have a minimum of one shareholder, without an obligatory minimum capital contribution. One company secretary and a single director. Only the company secretary is required to reside in Cyprus.
- These entities are eligible for corporate income tax on their income from all over the world. Entities managed from overseas are only subject to corporate income tax on their Cyprus income. In addition, both resident and non-resident companies are required to submit their audited financial statements annually.
- An LLC is best suitable for having a business entity to trade with European Union customers and suppliers.
Cyprus Free Zone Company (Larnaca Free Zone Company)
- Foreign business entities can establish a business presence in a special economic zone called the free zone of Larnaca.
- The benefits of such an entity are a subsidized industrial area, excellent industrial infrastructure. These entities are exempted from value-added tax on non-EU goods under transit. Free zone companies also benefit from deferred value-added tax payments on imported goods in the European Union.
- This entity is most suitable for manufacturing activities of goods which are re-exported to the European Union.
Cyprus Public Limited Company (Public Company Limited by Shares)
- The prerequisites for incorporating are at least seven shareholders, a minimum of two directors and a minimum of € 25,000 as share capital. A minimum of 25% of this amount has to be paid during the incorporation process. A secretary of the company is also required. The secretary must be a resident of Cyprus.
- Public limited companies are required to recruit one certified auditor. The financial statements must be submitted yearly.
- We recommend our clients this option if they wish to raise significant capital amounts, especially if the company is to be listed on the Cyprus Stock Exchange or any other European stock exchange.
Cyprus Branch Office
- Foreign entities wishing to do business can set up a branch in Cyprus. The incorporation process does not require a minimum amount of capital to be invested. A Cyprus resident has to be appointed as a representative.
- The holding company is required to prepare an annual financial statement. Our clients should also note that all liability falls on the parent company when using a branch.
Cyprus Holding Companies
- Capital gains are exempted from taxation for this entity. Also, income from trading in shares, securities, and debentures is also tax-free. The number of dividends and interest paid to individuals or corporations not present in Cyprus is also exempt from taxes.
- Dividends received from abroad are tax-exempt if not used as tax deductions abroad. The tax credit is also easily available due to a wide network of 64 Double tax avoidance treaties.
- Research and development expenses for innovative technology entities are also completely free of tax cuts. IP revenue can secure a corporate tax exemption of up to 80%. A 5-year amortization provision is also available.
- Realized and unrealized foreign exchange profit / loss is also free of tax cuts. Cyprus provides for a 75% tax group loss relief for the current fiscal year that can be transferred across its borders to other EU countries.