What is unique in your jurisdiction and why Chinese investors should form companies there?
Cyprus is an EU country and is a long standing tried and tested financial center. Specifically the Cyprus holding company is widely used in international tax planning.
Chinese investors may choose to take advantage of the beneficial tax system of Cyprus and form a Cyprus company as part of various other corporate structures such as financing, intangible asset ownership, trading, investment fund and international trust structures.
What makes your jurisdiction different from other competitors for Chinese investors?
Cyprus has excellent and ripe infrastructure to accommodate international business and is a well - established business center. Further, Cyprus has a flexible legal system, highly skilled professionals, English language is widely spoken and high level English schooling facilities allow families to relocate to Cyprus. From safety perspective, compared with other European countries, Cyprus has a low crime rate.
What is the general taxation rate for incorporating companies in your jurisdiction?
The corporate tax rate in Cyprus is 12,5%. Nevertheless, the effective tax rate applicable can be lower due to various exceptions applicable for example: dividend income is exempt from corporation tax, tax credit is available, profit from sales of titles is exempt from corporation tax, no capital gains tax is paid in Cyprus on the transfer of immovable property situated outside Cyprus, there is no tax of profits on an overseas establishment of a Cyprus company subject to certain conditions. Special reference can be made to IP companies that benefit from a maximum effective tax rate is 2,5%.It is notable that the Cyprus IP box is considered to be the best well-kept secret in IP structuring.
Can the regulatory authority request information about the company and officers or account details from your jurisdictions?
The details of any persons acting as directors and as registered shareholders are submitted to the registrar of companies in Cyprus. The records of the registrar of companies are open for public inspection and for this reason nominees are often used for confidentiality.
Details of the beneficial owners of a Cyprus Company or bank account particulars are confidential and may be disclosed only following the issue of a relevant court order.
What are the fees associated with company incorporation and how long does it normally take?
The fees payable to the registrar of companies are very low and also depend on the amount of the share capital of the Cyprus Company to be incorporated. It takes approximately 5 working days for a company to be incorporated.
Does your jurisdiction have any DTAs with China or HK?
A double tax treaty exists between Cyprus and china which came into force on the 5th of October 1991.
What is the new incorporation volume during the year of 2013?
According to the statistics records of the registrar of companies in Cyprus there have been 10.847 new registrations in 2013
