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10 Q&A about your company’s establishment in Cyprus

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1. What are the main reasons for establishing a Cypriot company?

We encounter many different reasons among entrepreneurs who maintain Cypriot companies. More common than the main reasons are:

  1. High net income for owners, steadily yielding them 87.5% of their net profits, ensuring HUGE profitability.
  2. Stability in the business environment as there are no unpleasant surprises and changes in taxation, social security funds, banks, and generally in services and organizations.
  3. Legal framework based on English Law, therefore Cypriot companies have significant international acceptance of agreements and contracts.

2. Can I buy/transfer properties outside Cyprus and in Greece?

Certainly! By obtaining a Special Purpose Tax Identification Number (AFM EidiKou Skopou) in Greece on behalf of the Cypriot company, you can legally proceed with the acquisition or transfer of real estate in Greece.

3. Can my insurance, if I establish a Cypriot company, be done through EFKA in Greece? Will I have full coverage for retirement and medical care?

The procedure exists and is supported clearly and securely by our company for our clients. We have the entire payroll plan to cover insurance obligations at EFKA in Greece on behalf of your Cypriot company. You simply request it from us, and we connect you to the system, providing you with full coverage for retirement and healthcare services in Greece.

4. Is it possible to expand my Cypriot company to Greece by establishing a branch?

It’s a great choice, as expanding your Cypriot business into Greece through the establishment of a Foreign Branch gives you significant advantages through Consolidated Financial Statements and the combined management of capital and funds among your companies.

5. If I buy goods or receive services from other countries through my Cypriot company, do I pay VAT?

No, you are not subject to VAT payment for B2B transactions since your Cypriot company and the contracting companies (suppliers) are located outside of Cyprus in another EU member state and are registered in VIES (VAT Information Exchange System).

6. What is the process of setting up a Cypriot company? How much bureaucracy is involved, and what difficulties will I face during the setup?

The establishment of a Cypriot company is not a simple and easy process that someone who is not specialized can handle.

It requires knowledge, experience, and procedures… which we at EPIDOSIS CYPRUS undertake to handle, and within 15 working days, you have the complete package of accounting/financial/legal documents plus the corporate bank account, so you can start operating!

7. From whom can the board of directors of my company be composed? How are decisions of the Board of Directors taken?

It’s necessary for there to be mandatory

1. Beneficiary Owner

2. Shareholder

3. Director

4. Secretary

The Secretary of the Cypriot Company is required to be a Permanent Resident of Cyprus, or can we provide you with Administrative Services using a Nominee Secretary

Decisions are made by unanimous decision of the Board of Directors or by a majority of the Partners, and they are ratified by the Secretary of the Cypriot Company.

8. Do I need to have any substance in Cyprus to avoid my company being considered as virtual or a ‘shell’ company, as tax authorities refer to it?

Of course! Substance is very important, and you should ensure that your company has a Physical Presence (not just the registered office of your accountant or lawyer) but actual establishment with electricity, water, telephones, internet, common expenses, furniture, appliances, machinery, employed personnel, website, etc.

We undertake to guide you on all the above to ensure that your company is not classified in Cyprus as a virtual or “shell” company, as mentioned by tax authorities.

9. Can I transfer the money I earn with my company in Cyprus to a personal account as dividends? Through which process?

Of course, we can transfer them to any individual bank account in Greece in the form of dividends, provided that we issue the relevant Certificate and cover the source of funds with the Bank.

10. Will the profits and dividends of my Cypriot company be taxed again in Greece if I am not a Tax Resident Abroad?

Under no circumstances, as long as the appropriate actions and declarations are made by the Tax Authority of Cyprus to the Tax Authority of Greece, in order to avoid Double Taxation.

At EPIDOSIS, our experienced executives are Tax Experts and we ensure ZERO accounting and auditing errors for our clients!

Contact the experienced team of EPIDOSIS at 2310 477725 & 210 726 4080 or schedule an appointment for a meeting at our offices in Athens, Thessaloniki, Larissa, or in Nicosia, Cyprus.

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