Cyprus has a presidential system of government. The President is Head of State and is elected for a term of five years. The executive arm of government is the Council of Ministers to which the President appoints members. The legal system is based on that of the United Kingdom.
Cyprus joined the European Union in May 2004. In accordance with undertakings given to the EU and the OECD exchange controls were abolished and the tax regime for offshore companies was changed. A tax rate of 10% was introduced in 2004 and applies to both onshore and offshore companies. This rate is the lowest in the EU. There is an extensive network of double taxation treaties, which has made the Island a popular location for various international planning purposes. For individuals there are generous exemptions from income tax.
The Central Bank of Cyprus supervises the financial services sector, including banking, insurance and investment management activities. As from late 2006 the licensing system will be extended to include businesses providing corporate management and trustee services and this will bring Cyprus into line with the other major offshore financial centers.
| Cyprus offshore company regulations |
| Type of entity |
IBC |
| Type of law |
Common |
| Corporate taxation |
10% |
| Double taxation treaties available |
Yes |
| Share Capital |
| Usual currency |
Euro |
| Permitted currencies |
Any |
| Minimum paid up |
1000 Euros |
| Usual authorised |
5000 Euros |
| Directors |
| Minimum number |
1 |
| Local resident required |
No* |
| Records publicly available |
Yes |
| Corporate Director allowed |
No |
| Shareholders / Members |
| Minimum number |
1 |
| Records publicly available |
Yes |
| Location of Meetings |
Anywhere |
| Company Secretary |
| Required |
Yes |
| Local or qualified |
No* |
| Accounts |
| Required |
Yes |
| Audit required |
Yes |
| Filing required |
Yes |
| Publicly available |
No |
| Other |
| Annual return required |
Yes |
| Change of domicile permitted |
No |
| Availability of shelf companies |
No |
| Time to incorporate shelf co |
N/A |
| Time to incorporate new co |
10-14 working days |
* Sometimes advisable for tax purposes
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