SETTING UP A COMPANY
Why should I set up a company?
One of the most important reasons for setting up a company in Cyprus is its low corporation tax. This is currently at 12.5%. By setting up a company in Cyprus, you may set up your business structure in such a way that all of your taxable profits (from around the world) are taxed in Cyprus.
Given Cyprus’ wide double tax treaty network, we can guide you through the process of incorporation and tax planning.
What is required to set up a company?
We will require from you the following:
- Signed letter of engagement.
- Copy of passports, occupation, utility bill of the directors and shareholders.
- A signed acceptance letter by the directors.
How long does it take to set up a company?
If you require the Company to be registered under a name of your choice, you will need to provide us with more than two alternative options bearing in mind that the name must be unique.
Please note it takes approximately 4-5 working days for the Registrar of Companies to approve the name.
As soon as the name is approved, the paperwork can be filed to incorporate the company. This takes around 2-3 working days.
OBTAINING A CYPRUS PASSPORT
What are the benefits of obtaining a Cyprus passport?
There are several benefits of obtaining the Cyprus passport:
- Passport is obtained in approximately 3 months of the application.
- Visa free travel to more than 150 countries with the right to live, work, study in any EU country.
- Dual citizenship is allowed.
- The citizenship is also granted to the spouse of the applicant as well as to the applicant’s children.
- No requirement to reside in Cyprus.
- No tax on dividends for non-tax residents. No inheritance tax. Low corporation tax.
- Excellent climate, safe to live, English speaking.
- Access to EU health-care and education systems.
- Investment need not be permanent but only be held for 3 years.
What is required to obtain the passport?
Besides the documentary requirements, it is imperative for the applicant to fulfil the following criteria:
- A Clean Criminal Record.
- No freezing order must have been made on the Assets of the Applicant within the Boundaries of the EU. (this is obtained by the Ministry of Interior)
- The Applicant must (in addition) own a privately-owned residence in Cyprus which costs more than €500.000 plus V.A.T plus levies and taxes. Note that in case the applicant’s sole investment is a residence under A.3. of a price of over €5 million he is not obliged to buy a further privately-owned residence. Note that the privately-owned residence may be rented or sold, provided that the applicant buys a different residence of an equal or higher purchase value.
How long does it take to obtain the passport?
From the date of filing the application, and provided that the application is successful, it takes approximately 3 months for the passport to be issued.
If I obtain the passport, can my family move to Cyprus with me?
Yes. Your spouse and children (provided some conditions are fulfilled, these can be up to 28 years old) can all obtain the Cyprus passport without any further requirements in respect of investment, provided that an additional application is filed.
SETTING UP A CYPRUS INTERNATIONAL TRUST
Why should I set up a Cyprus International Trust?
A Cyprus International Trust is a transparent tax entity. Provided that the majority of the beneficiaries of the trust are tax residents abroad, the trust will be subject to tax only on its Cyprus income and not on the income abroad.
Besides the tax advantages there are a myriad of reasons for setting up a tax including:
- no forced heirships.
- it is difficult to challenge.
- confidentiality is ensured.
- it is flexible – the settlor can reserve powers to change the trustees, enforcers, protectors as well as the terms of the trust.
What are the costs and fees of setting up a Cyprus International Trust?
A stamp duty is payable at the rate of €430 when setting up the CIT as well as €30 for the registration of the trust with the Cyprus Securities and Exchange Commission.
Our setting up fees vary in accordance with the complexity of the trust. The same applies in relation to our annual administration fees.
What services do you offer in relation to a Cyprus International Trust?
Our services relating to the trust are the following:
- We draft and set up the trust.
- We administer the Trust in accordance with the settlor’s wishes and can act as Trustees of the Trust property.
- We provide ongoing advice to the clients as well as the beneficiaries.
What is the maximum probationary period for an employee?
The probationary period is for an initial period of 6 months, although the employer cannot have the employee on probation for more than two years provided that this is agreed at the beginning of the employment – not after.
My employer's behaviour was such that I was forced to quit. What are my rights?
In cases the behaviour of the employer was such so that you were forced to leave, this means that the dismissal was unfair. If this was the case, you may be allowed to compensation for unfair dismissal.
What is the compensation which I am allowed to for unfair dismissal?
If the employer has unfairly dismissed you, you are allowed compensation in accordance with the number of continuous weeks which you have worked for the employer.
Further to this, the employer must have provided you with a notice of dismissal. This means that the dismissal cannot be outright. It ranges from a week to 2 months according to the number of continuous weeks you have worked for the said employer. In some cases the notice may extend up to a maximum of 12 months. Until the notice expires, the employer must pay the employee.
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