Why Forming a Cyprus Holding Company may be ideal?
Forming a Cyprus Holding or Parent company may be proven to be a great step for your business. Cyprus lies at the top of the EU tax league, in terms of its tax regime attractiveness and due to its combination of consistency in interpreting EU tax legislation and stability in resisting frequent changes to EU tax laws. It is a well-known fact that operating in a country with an attractive corporate tax regime provides a competitive advantage when competing with overseas businesses.
The widely used legal form is the private limited liability company with a share capital of EUR1000 (although there is no minimum capital requirement) to be issued and paid up upon incorporation. This type of company must, by law, prepare and submit financial statements in accordance to IFRS. Furthermore, an annual return to the Registrar of Companies is required and an annual corporate income tax return has to be submitted to the Tax Department as per Cyprus’ Taxation Law.