Cyprus has become a prominent destination for international business, offering a transparent and flexible corporate law framework under the Companies Law, Cap. 113. Modeled after the English Companies Act, this law governs company formation, corporate governance, taxation, and compliance.
The most common entity in Cyprus is the private limited liability company (Ltd). The process involves name approval and submission of a memorandum and articles of association. A minimum of one director, shareholder, and secretary is required. While no minimum share capital is necessary, having a Cypriot-resident director benefits tax residency.
Directors in Cyprus have fiduciary duties to the company, while shareholders retain rights such as voting and receiving dividends. Annual General Meetings (AGMs) are mandatory, ensuring transparency and allowing shareholders to make key decisions.
Cyprus boasts a 12.5% corporate tax rate, one of the lowest in the EU, along with an extensive network of over 60 double tax treaties. Companies are tax residents if their management is in Cyprus, often leading to appointing Cypriot directors.
George S. Theophanous LLC is a leading law firm in Cyprus, providing expert services in corporate law, including company formation, legal advice on governance, tax planning, and compliance. Their team assists businesses in navigating the complexities of Cypriot corporate law, offering tailored solutions to meet international and local client needs.
In conclusion, Cyprus offers a favorable business environment with flexible company structures, strong corporate governance, and attractive tax policies, supported by legal experts like George S. Theophanous LLC, who guide businesses through every step of the process.