Cyprus company bank account opening


Membership of the European Union enables access to the single market comprising the fundamental freedoms of movement for persons, goods and capital, and establishment. The result is that those willing to set up a business within the European Union can choose a location they see best fit and therewith benefit from a single and borderless regime for its corporate activities.

To decide on the most appropriate location to incorporate a company, several indicators give rise to the best solution. The match between a location and the activities of the company can result in synergy. Such synergy relates to the combination of the local facilities, the geographic location, the legal system, taxation, and various treaties, as well as access to the overall system of EU agreements and policies. Cyprus can deliver such synergy for company formation or the incorporation of different company types and structures. It is the business owner who needs to determine whether Cyprus is the preferred place for incorporation. Those very business owners investigating the possibilities and opportunities of a Cyprus company, are invited to contact us to discuss their options.

Incorporation in Cyprus has several advantages alongside the attractive corporate tax rate of 12,5% for qualifying companies. Whilst substance and presence determine the feasibility of the tax efficient corporate structure, the local infrastructure, its geographical location, and the sophisticated legal system, which is backed up by the European framework, provides for further privileges.

Most legal persons in Cyprus operate as a Private Limited Company Divided by Shares, in short the ‘Limited’ or Ltd. The separation of ownership and control from the legal entity discharges the beneficial owner from personal liability. The result is that the Cyprus Limited company can be used as a stand alone trading entity, or a holding company with subsidiaries in Cyprus, the European Union or abroad. A variety of tax treaties prevent different tax authorities to charge companies and their beneficiaries in different jurisdictions for the same event. Yet not every country is covered by these tax treaties and therefore individual situations must be considered on an individual basis.

Cyprus Trust companies, Limited Liability Partnerships, Special Purpose Vehicles, and tailored solutions to protect intellectual property rights or property portfolios serve a specific purpose in international tax planning and can be used in a global setting. Where needed, a shelf company or pre-approved company name can be provided to customers in need of an already established legal entity. More about Cyprus Company Formation is available here.