A sole proprietorship, also called a sole trader, in Cyprus, is the most basic type of business vehicle in this country. It implies having a single owner who entirely controls the business. This type of legal entity, according to the Cypriot legislation, is not considered a legal person. Therefore, there is no distinction between the entity and the proprietor who assumes all the rights and duties of the sole trader. In this article, our lawyers in Cyprus explain the taxation system set in place for sole traders in Cyprus.
Table of Contents
The income taxation for sole traders in Cyprus is set as follows:
A sole trader in this country who is converting the business into a company is able to carry forward the tax losses into the business entity for future use. Our Cypriot lawyers can provide further details on this matter.
In Cyprus, there are no official procedures for setting up a sole trader. Our law firm in Cyprus can help you open such a business vehicle in this country. The legal entity has to, though, abide by all the appropriate regulations and statutory requests like registering with the Inland Revenue Department, the Social Insurances and the VAT Service.
As mentioned in the Partnership and Business Name Law in Cyprus, a sole trader has the ability to choose to utilize a trade name for the business by being issued a trade name approval from the Registrar of Companies and Official Receiver.
Among the other benefits of sole traders in Cyprus, our attorneys in Cyprus mention:
If you need to know more about the taxation for sole traders in Cyprus, or for any type of legal advice in this country, please do not hesitate to contact our Cypriot law firm.