Corporate Structure Cyprus/ Overseas
1. Establishing a business in Cyprus is a tax-efficient way to conduct business in the European Union and beyond. The island also boasts a large network of service providers such as advisory, legal and accountancy services which can assist in setting up a company.
Cyprus Companies offer many competitive advantages when compared with other global business centres. Investors seeking an EU compliant, tax-efficient and stable tax planning environment will find the island offers considerable opportunities to minimise tax exposure. The companies’ law in Cyprus is the Cyprus Companies Law, Cap.113, which is based on the English 1948 Companies Act. Single member companies were introduced by the Companies (Amendment) Act 2000 and other amending legislation was passed in 2000 and 2001. Cyprus’ business structures, tax system, infrastructure, highly skilled workforce and membership of the European Union have made Cyprus one of the most attractive international business hubs in the world today. Cyprus has become a location of choice for international commerce as well as for reputable multinationals seeking a legitimate tax efficient jurisdiction. The laws and regulations for setting up and administering Cypriot entities are the same for foreign investors carrying on international business activities as they are for local investors. Entities may be registered in the following legal forms under Cypriot company law which is almost identical to the UK’s former Companies Act 1948:
- Limited Liability Company (private or public);
- General or limited partnerships;
- European Company (SE);
2. Structuring your Overseas Business
There are a number of market entry options to become established locally in overseas markets, including subsidiary, branch, representative office, joint venture and other forms of partnership or alliance. In some cases, a company might also consider a manufacturing base or franchising.
It is a most important step to choose the right entity and developing an appropriate business structure. This needs to suit your company and your goals for the market, as well as being suitable for the conditions of the target country and complying with local rules and regulations. Your legal and tax implications, both in the foreign market and at home, also need to be taken into account.
We work closely with our clients to set up business structures that suit their particular requirements and the market within which they will be operating.