A limited liability company (LLC) in Cyprus is the most common type of business structure chosen by foreign investors in this country. The Chapter 113 of the Companies Law of 1959 rules the LLCs which are based in Cyprus. As follows, our lawyers in Cyprus describe the taxation for LLCs in this country, as well as different aspects related to LLCs in Cyprus.
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LLCs in Cyprus which are considered to be foreign legal entities do not pay corporate taxes. U.S. citizens, though, as well as citizens of other countries, must declare their income to their local tax authorities.
Resident LLCs in Cyprus are taxed on their corporate income with a rate of 12.5%.
In this jurisdiction, there are no withholding taxes for LLCs. Also, there is no tax set in place for transferring shares.
Our attorneys in Cyprus can provide assistance for entrepreneurs who are interested to set up such a business vehicle in this country.
Our law firm in Cyprus is at the disposal of both corporate and non-corporate clients with a wide range of services. Among these are the Commercial and Corporate Laws for companies, and the Civil Code for natural persons. We can also offer assistance in Family Law matters. We can provide family law advice to both Cypriot and foreign clients.
Setting up an LLC in Cyprus does not only bring the above-mentioned tax benefits, but also those related to the notion of limited liability.
A legal entity is considered a legal person, separate from its members, and it is able to own real estate under its own name, to be a party in a contract, sell shares and so on.
Consequently, its members’ liability is limited in function of their original contribution to the company.
This implies that, upon the liquidation of an LLC, the shareholders cannot lose more than what they have initially invested in the business. Our Cypriot law firm can provide help for business people who want to open an LLC here.
Only the legal entity itself is liable for its debts. All that the company can require from its shareholders is that their shares are fully paid for.
Apart from these benefits, there are others, such as economic stability, a structured legal frame based on the English Companies Act which is harmonized with the EU corporate legislation, low incorporation fees and a fast company formation procedure. Our Cypriot lawyers can offer more details on the advantages of LLCs in the country.
Having an advantageous geographical location at the crossroads of Europe, the Middle East and Asia, Cyprus also has a wide network of double tax treaties and is presently negotiating more.
For more details about the taxation for LLCs in Cyprus, or for any type of legal advice, please contact our law firm in Cyprus.