Reasons why I SHOULD apply for a LTD company. Beyond you can see all analysis for the reasons for applying a Ltd.

Some of the benefits 

• Tax purposes
• All obligations for the companies belong to the ltd, meaning that cannot be obligated to any physical person 
• Covering Loan for the case of business establishment, beyond that covering all expenses of the building… such us interest on the loan, insurances, and all other cost.
• In cases of losses of the company then the ltd business is entitled to cover up to 5 years’ losses / or deduction from other years’ profit

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Losses carried forward

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The Cyprus corporate tax regime, in addition to the low tax rate (12,5%) offers tax exemptions, deductions for expenses and tax loses relief.

Below you will find all the advantages a Cyprus company can benefited.

 

Losses carried forward – Group of companies

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The losses carried forward rule can be applied with the profits of another company (for the same year) of the group of companies – provided the companies are tax residents.

 

 

When is a company considered as a part of a Group of companies? 

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• One Cyprus tax resident company holding directly or indirectly at least 75% of the voting shares of another Cyprus tax resident company.
• Both of the companies are at least 75% (voting shares) held, directly or indirectly, by a third company.

As from 1 January 2015 interposition of a non- Cyprus tax resident companies will not affect the eligibility for group relief as long as such companies are tax resident of either an EU country or a country with which Cyprus has a double tax treaty or an exchange of information agreement (bilateral or multilateral).

 

A Cyprus tax resident company may also claim the tax losses of a group company which is tax resident in another EU country, provided such EU company firstly tries the all possibilities available to utilize its losses in its country of residence or in the country of any intermediary EU holding company.

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A partnership or a sole trader transferring a business into a company 

 

Corporate tax

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A Cyprus (tax) resident company is taxed on the income accrued or derived from sources in Cyprus and abroad. A non-Cyprus resident company is taxed on the income accrued or derived only from sources in Cyprus.

 

Tax residency

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Legal entities are considered tax residents of Cyprus if the management and control of the activities are exercised via the republic of Cyprus.

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Corporate tax rate

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The corporate tax rate for Cyprus companies is 12.5%. If you already owe a company, you can calculate via this tool the tax if your company was Cyprus registered.

Dividends Rate calculated based on the profit – 75% of the net profit 18% of the total net.

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COMPANY REGISTRATION IN CYPRUS

 

 

• Legal Form of a Company in Cyprus is considered a separate legal entity  and may take the form of a public or private LLC (Limited Liability Company). This can be a Company Limited by Shares or a Company Limited by Guarantee. Generally, the most common option is a private LLC by shares.

 

• Cyprus Company name must be selected and submitted to the Cyprus Registrar of Companies for approval. This procedure in Cyprus generally takes approximately 3 to 5 working days.

 

• Memorandum and Articles of Association must be prepared by a licensed legal practitioner and submitted to the Registrar of Companies. These two documents specify the activities in which the company engages, and the rules governing the management of the company.

 

• The number of shareholders in a private LLC can be anywhere from 1 to 50. The number as well as the personal details of the shareholders, including address and nationality, must be submitted to the Registrar of Companies.

 

• Share Capital refers to the minimum amount of share capital of a private LLC. The most common share capital is 1000 shares at 1 euro each. Additionally, there is no specific currency requirement, which means that any currency is applicable.

 

• The minimum company Directors and Secretary for a private company is one. The law also requires a Cyprus company to have a secretary, who can either be an individual or a corporate person.

 

• A company registered in Cyprus must indicate a registered office and address in Cyprus, which must then be submitted to the Registrar of Companies.

 

• The timeframe for registering a Cyprus company when all information is submitted to the Registrar of Companies and all compliance checks are completed, the process takes is approximately between 18-20 working Days.

 

 

 Other Documentation needed

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• ID of Director
• ID of Shareholder
• ID of Secretary
• Utility bill of Director
• Utility bill of Shareholder
• Utility bill of Secretary
• Registered office address
• Number of Shares – normally 1000
• 3 optional name of the ltd companies for approval from the
• Registree

 

Step 2

• Enrollment to Social insurance as employer
• Enrollment of Director
• Applying for exception to the SI office
• Enrollment SI to the erganis
• Enrollment SI to SIS
• Termination of Self employee – Social Insurance

 

• Enrollment to Tax Authorities
• Creating taxisnet
• Change Director to physical status tax
• Creating Ariadni
• Preparation of agreement for the rent of business managed by
• The Ltd company

Ready to Start

Good luck

 

In case of Occupational Therapy / other professional occupation as Therapist will need beyond the information shown below, the License from the Cyprus association.