Although setting up and running a Cyprus company is smooth and straightforward, there are some points to consider, which will make the whole process even more effective and efficient. The purpose of this article is to highlight some of these points in bullet form, as expanding on each of these would need an article on its own.
- Ensure that a Cyprus company is the best solution to your needs, compared to vehicles from other jurisdictions.
- Adopt the best possible structure before setting up, depending on activities, needs, other jurisdictions involved, etc.
- Implement in depth tax planning in order to ensure compliance with the provisions of the Cyprus Tax Law.
- Obtain advance opinions (rulings) from the authorities to avoid nasty surprises later on and to ensure proper treatment based on specific facts.
- Keep up to date books and records as per the provisions of the Cyprus Companies’ Law and in accordance with International Financial Reporting Standards.
- Ensure that at all times the company is managed and controlled in Cyprus in order to be considered as a tax resident of Cyprus.
- Keep your official corporate documents simple and broad but at the same time specific enough not to cause ambiguities.
The purpose of this article is not to draw an overcomplicated picture for Cyprus companies but to stress some points related to their set up and management, which if taken in to account, will help you to satisfy your investment objectives. Of course these and any other points to consider should be examined under the specific facts of each scenario and assessed on a case by case basis. To this respect, professional advice should be sought in order to gain access to expert knowledge and experience on local laws and regulations and also on their practical application. We are at your entire disposal to discuss any case you have in mind.
George Savvides, Partner
Phone: + 357 25 50 40 00
Fax: + 357 25 50 41 00