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Corporate Economic Substance in Cyprus

Several jurisdictions, including Cyprus, have adopted legislation which defines 'corporate economic substance'. In general all these regulations required that companies can prove that they have a physical presence and control in the jurisdiction that they claim to have tax residency.

It is generally accepted that a company resides, for tax purposes, where its real business is carried out and the 'real business' of a company is carried out, not where the trading operations are taking place, but where the central management and control of its business actually takes place. The Cyprus Law No.118(I)/2002 in Section 2 identifies the meaning of a tax resident company and, in effect, implements the above rule that a company is tax resident of Cyprus only if its management and control is exercised in or from Cyprus. Note that according to this rule, the place of incorporation of a company is therefore irrelevant.

Corporate economic substance consists of two main criteria. One is to have employees in Cyprus and the second is to have a physical office in Cyprus. In addition, it is recommended for a company to have telephone line, email address and website etc to strengthen its position and to strengthen the application to open a bank account.

Relikor offers add-on services to ensure that the company’s fiscal residency is robust, properly established, and managed. 
Our Substance services include following (but not limited to):
> Recruitment and appointing of Cyprus resident directors and employees;
> Dedicated fully furnished office space with workstations;

> Land-line telephone and fax with bills in company's name;
> Payroll services including monthly submissions to social insurance;
> Preparation and submission of annual employer's tax return to social insurance;
> Arranging obligatory annual employer's liability insurance;
> Payment of obligatory annual municipality professional fees;
> Bank account opening with local banks;
> Execution of documents and payments instructed from local substance office;
> Bookkeeping / accounting and tax compliance services;
> IT services including setting up a website and email addresses;  
> Content writing for website based on the information provided by the client;

In cooperation with legal advisors and local serviced office operators, Relikor Serv Ltd provides clients a full range of services to establish fully compliant economic substance in Cyprus.

Cyprus offers an attractive Intellectual Property Tax regime Cyprus offers a highly respected reputation as an international financial centre Cyprus has a well-developed infrastructure and financial services sector Cyprus is a member of the EU and Eurozone Cyprus has an excellent and highly experienced legal and accounting services industry Cyprus has a very favorable favourable corporate tax regime one of the lowest corporate tax rates in the European Union Cyprus is an EU member state companies benefit from the free movement of goods, services and capital within the European Union The country has a robust infrastructure and services that make doing business easy Cyprus has a double tax taxation treaty treaties extensive network with more than 50 countries including east European former CIS countries There is a tax-efficient jurisdiction for holding companies, with no withholding taxes on dividends, interest and royalties Cyprus has a modern and efficient legal system there are no currency exchange restrictions in Cyprus The country offers various incentives for foreign investors, such as attractive tax benefits Cyprus has a very skilled and cost-effective labor labour force Strategically located in the Eastern Mediterranean, close to Middle Eastern Middle East Africa African South East Europe Turkey Turkish GCC Gulf Persian markets  

Here some reasons why a UK Serbia Serbian Ukraine Ukrainian Russia Russian Kazakhstan Kazakh France French Israel Israeli Sweden Swedish Norway Norwegian Finland Finnish Denmark Danish registered based ltd limited SPA SA LLC PLC private public listed company trust legal entity partnership IP owners trademark software rights royalties dividends interest earnings pensions funds AIF investment funds investors should relocate move redomicile to Cyprus jurisdiction Cyprus has a beneficial tax regime with low corporation tax rates of 12.5% Cyprus offers a wide range of tax incentives  Cyprus has a wide network of double tax treaties Cyprus registered company can benefit from the EU Parent-Subsidiary Directives Cyprus has an attractive holding company regime
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