Company Formation in Cyprus

A Cyprus Holding Company (CHC) does not produce goods or services but rather manages or owns the outstanding stock of other companies. This allows their owners to control more than one company across a variety of business activities whilst benefitting from the favorable tax regime. Loggerhead Corporate Services maintains a strong presence in Cyprus and, together with our Associates, we can assist clients with all their Cyprus company formation needs.

A Cyprus Holding Company can be classed as either a private limited or public limited company. The private limited liability (LLC) entity is the most commonly used structure from a foreigner perspective. Private LLCs can be incorporated by a minimum of one individual and a maximum of 50 individuals. Each shareholder is liable for the amount invested in the company’s share capital (no minimum share capital applies to private LLCs).

 

Companies are considered as Cyprus residents if their management offices are based in Cyprus. Cyprus residents are subject to the standard taxation rate of 12.5% on their worldwide income. For non-resident companies, corporation tax is only applied on any income produced in Cyprus at the same 12.5% flat rate.

Cyprus Holding Company Benefits

Flat Rate of 12.5% corporate tax

Can distribute profits to non-resident shareholders completely tax free

0% Capital Gains Tax

0% Tax on profits from overseas establishments

0% Tax on dividends from overseas companies

2% Corporate Tax on revenues from IP Rights

EU member - easy to conduct business with the 28 EU member states

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It is the legal entity required for someone to operate within any of the 7 Emirates in the UAE.

 

For clients who wish to substantially expand their business to mainland UAE and require office space and residency visas, the Onshore business setup is the most suitable option.

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Offshore companies are the ideal choice for businesses who do not require any physical office space.

 

The UAE offers the formation of International Business Company’s (IBC) through the offshore registries located in Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah through the RAKIA Free Zone and RAK Free Trade Zone.

 

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Free trade zones are isolated areas with special tax, customs and import regimes. Free Zones are governed by their own distinct framework of regulations (except for UAE Criminal Law).

 

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The DIFC offers a secure and efficient platform and regulatory environment for businesses and financial institutions to operate in the emerging markets of the region.

 

The DIFC is governed by its own independent regulation, common law framework, supportive infrastructure and tax-friendly regime governed by the Dubai Financial Services Authority (DFSA).

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Swiss Public Limited Company (AG)

 

The public limited company (AG) is the most widely used legal form in Switzerland. The formation of a public limited company requires a minimum share capital of CHF 100,000, of which 20%, or at least CHF 50,000 must be paid-in by either cash or with a contribution in kind.

 

For companies whose share capital exceeds CHF 1 million, the authorities charge a stamp duty of 1%.

 

Swiss AG companies must pay taxes on capital and income. The corporate income tax rate in Switzerland varies significantly between the different Cantons, ranging from 12% to 23%.

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