Thursday, 29 July 2010
A company in Cyprus may perform a wide range of activities the most common of which are set out below:
Trading Companies
There is very wide scope for the use of such companies in Cyprus, particularly in conjunction with trading activities in the region. This is indicated by the numerous international trading companies in Cyprus used by persons and entities of various nationalities. Such companies can be used for the export of goods and services from any country to any destination and for transit trade activities in combination with the operation of bonded warehouses and the free trade zones.
Headquarter Companies
Cyprus offers ideal conditions for the location of regional management and administrative centers of multinational companies throughout the world with interests in the Middle East, North Africa and Eastern Europe.
Holding and Investing Companies
In view of the nil or low withholding tax rates on interest and dividends provided for in the Cyprus double tax treaties, such companies may often be used very advantageously to extract income from treaty counties. An international holding company can be the parent for companies registered abroad as well as Cyprus registered international business companies.
Service Companies
These may provide services such as sales promotion, accounting functions, provision of labor etc. They often employ expatriate staff which benefit from double tax treaty provisions, by paying tax in Cyprus at low rates, thus avoiding the high tax rates in their home country.
Construction and Engineering Companies
Cyprus is an ideal location for international construction and engineering companies due to the favourable tax treatment afforded to them and the existence of the Cyprus double tax treaties. Foreign contractors or engineers from a foreign country may avoid paying tax in a Cyprus treaty country provided the project does not exceed the duration specified in the respective tax treaty.
Finance Companies
Such companies may take advantage of the Cyprus double tax treaties by providing loans in treaty or other countries where withholding tax on interest is low or nil.
Royalty Companies
Due to the low withholding tax rates for royalties provided in most of the double tax treaties, establishing a royalty company in Cyprus can be a very attractive proposition.
Trusts
The income of an international trust is not taxable in Cyprus and beneficial owners can remain anonymous. Trust and fund management companies may be set up for the management of trusts, pension funds and investments and can benefit from the high standard of legal, accounting and banking services available on the island.
Printing and Publishing Companies
Cyprus has developed into a regional publishing, printing and distribution center mainly due to its low cost, high quality printing services and its excellent telecommunications system. These advantages together with the tax incentives offered, have led to the establishment in Cyprus of many companies engaged in the printing and typesetting of books and periodicals for sale and distribution outside the Republic.
Real Estate Companies
Such companies can be used very advantageously for dealings in property, especially in conjunction with the Cyprus double tax treaties. They can be of special interest for real estate investments in Sweden, Denmark, France, the UK and all Central and Eastern European countries.
Employment Companies
An international employment company can be used to substantially mitigate the tax paid by expatriates employed outside their home country.
Shipping Companies
The establishment of an open ship Registry, as well as other incentives provided by the government, have been important factors in the development of the island as a maritime center in the region.
Captive and General Insurance Companies
During the past decade, Cyprus has developed into a very attractive center for the establishment international insurance and reinsurance companies intending to transact insurance and reinsurance business internationally and especially in the Mediterranean, Eastern Europe and the Middle East.
Due to tax incentives offered, special insurance law exemptions, swift registration procedures, low running costs and locally available expertise, Cyprus is especially suitable for the establishment of an international captive insurance company.
Trading Companies
There is very wide scope for the use of such companies in Cyprus, particularly in conjunction with trading activities in the region. This is indicated by the numerous international trading companies in Cyprus used by persons and entities of various nationalities. Such companies can be used for the export of goods and services from any country to any destination and for transit trade activities in combination with the operation of bonded warehouses and the free trade zones.
Headquarter Companies
Cyprus offers ideal conditions for the location of regional management and administrative centers of multinational companies throughout the world with interests in the Middle East, North Africa and Eastern Europe.
Holding and Investing Companies
In view of the nil or low withholding tax rates on interest and dividends provided for in the Cyprus double tax treaties, such companies may often be used very advantageously to extract income from treaty counties. An international holding company can be the parent for companies registered abroad as well as Cyprus registered international business companies.
Service Companies
These may provide services such as sales promotion, accounting functions, provision of labor etc. They often employ expatriate staff which benefit from double tax treaty provisions, by paying tax in Cyprus at low rates, thus avoiding the high tax rates in their home country.
Construction and Engineering Companies
Cyprus is an ideal location for international construction and engineering companies due to the favourable tax treatment afforded to them and the existence of the Cyprus double tax treaties. Foreign contractors or engineers from a foreign country may avoid paying tax in a Cyprus treaty country provided the project does not exceed the duration specified in the respective tax treaty.
Finance Companies
Such companies may take advantage of the Cyprus double tax treaties by providing loans in treaty or other countries where withholding tax on interest is low or nil.
Royalty Companies
Due to the low withholding tax rates for royalties provided in most of the double tax treaties, establishing a royalty company in Cyprus can be a very attractive proposition.
Trusts
The income of an international trust is not taxable in Cyprus and beneficial owners can remain anonymous. Trust and fund management companies may be set up for the management of trusts, pension funds and investments and can benefit from the high standard of legal, accounting and banking services available on the island.
Printing and Publishing Companies
Cyprus has developed into a regional publishing, printing and distribution center mainly due to its low cost, high quality printing services and its excellent telecommunications system. These advantages together with the tax incentives offered, have led to the establishment in Cyprus of many companies engaged in the printing and typesetting of books and periodicals for sale and distribution outside the Republic.
Real Estate Companies
Such companies can be used very advantageously for dealings in property, especially in conjunction with the Cyprus double tax treaties. They can be of special interest for real estate investments in Sweden, Denmark, France, the UK and all Central and Eastern European countries.
Employment Companies
An international employment company can be used to substantially mitigate the tax paid by expatriates employed outside their home country.
Shipping Companies
The establishment of an open ship Registry, as well as other incentives provided by the government, have been important factors in the development of the island as a maritime center in the region.
Captive and General Insurance Companies
During the past decade, Cyprus has developed into a very attractive center for the establishment international insurance and reinsurance companies intending to transact insurance and reinsurance business internationally and especially in the Mediterranean, Eastern Europe and the Middle East.
Due to tax incentives offered, special insurance law exemptions, swift registration procedures, low running costs and locally available expertise, Cyprus is especially suitable for the establishment of an international captive insurance company.