ACCOUNTING, AUDIT, PAYROLL, COMPLIANCE,
NON-DOMICILE, TAX ADVISORY, ASSURANCE
On this page we present short answers to frequently asked questions.
For more information, contact Relikor by email or call +357 22025795.
WHY DO CLIENTS CHOOSE TO WORK WITH RELIKOR ? HERE ARE 8 REASONS WHY TO CHOOSE RELIKOR: 1. Our experienced professionals provide expert advice on book-keeping, accounting, auditing, tax advisory and compliance. 2. Our firm has a proven track record of delivering high-quality services to clients across various industries. 3. We have deep understanding of the regulatory environment and help clients navigate complex regulations and compliance requirements. 4. We use the latest technology and software tools to ensure that clients receive efficient and affordable services. 5. Our staff are trained to provide high quality personalized services tailored to meet the needs of each client. 6. Over the years we have established a reputation for integrity, reliability and professionalism. 7. We provide ongoing support and guidance to clients throughout their engagement with our firm. 8. We are dedicated to building long-term relationships with clients based on trust and mutual respect.
WHY IS A SMALL AUDITING FIRM BETTER THAN A LARGE AUDITING FIRM? Here are 5 main reasons: 1. Flexibility: Smaller firms have fewer staff, so they are more flexible to schedule tasks and are quicker to adapt to changes in the industry. 2. Cost-effectiveness: Smaller firms are more cost-effective due to lower overhead costs and more efficient work procedures. 3. Personalized Service: Smaller firms are closer to clients and offer a more personalized service. 4. More Focus: Smaller firms focus on individual client needs and provide more tailored services. 5. Faster Service. Smaller firms can complete audits in less time because they are more efficient and have less bureaucratic procedures.
SHOULD I DO BUSINESS AS A SOLE TRADER OR AS A LIMITED COMPANY? To decide whether to trade as a Sole Trader or as Limited Company you must consider the below: 1. Size Turnover is more than EUR70,000 then a Company is usually more appropriate. Also if you have high value assets, then a Company is commonly more appropriate. 2. Risk exposure your business is exposed to. If following are valid, then to minimise your personal risk a Company is a better fit - have more than 5 employees - perform risky services (for example exposed to accidents or high professional exposure etc) - possibility of lawsuits - VAT and tax complications 3. Prestige It is more prestigious when you trade under a Company than as a person. You look more professional and bigger to your clients, prospects and creditors. 4. Other Factors All factors must be considered in combination and with the assistance of an experienced accountant the solution will be clear.
WHAT TYPES OF COMPANIES CAN BE SET UP IN CYPRUS ? The following 3 types of companies can be set up in Cyprus: 1. Company Limited by Shares (LTD) 2. Company Limited by Guarantee 3. Public Limited Company (PLC)
ARE CYPRUS COMPANIES OBLIGED TO SUBMIT AUDITED FINANCIAL STATEMENTS EVERY YEAR? YES. The income tax office requires all Cyprus companies to prepare and submit audited financial statements by a licensed auditor firm.
I HAVE INCOME FROM SEVERAL COUNTRIES. WHICH COUNTRY SHOULD I PAY TAX? It depends on which country you are considered tax resident. Usually the country where you reside for more than 183 days is considered your country of tax residency. Therefore this country is responsible to collect taxes on your worldwide income. There are exceptions to this rule which Relikor can advise in more detail.
WHAT DOCUMENTS DO YOU NEED TO DO BOOK-KEEPING AND AUDIT FOR MY COMPANY? We need the following information to prepare accounts and audited financial statements for companies: Bank statements; Cheque books; Sales invoices; Z readings; Purchases invoices; Payroll records; Contracts; Tax payment receipts
DO I NEED TO SET UP A COMPANY IN ORDER TO DO BUSINESS IN CYPRUS? It is not necessary to set up a limited company. You can trade as a person and be called a Sole Trader. The difference between trading as a Limited Company or as a Sole Trader, has tax and VAT consequences. The correct decisison depends on the industry, and the expected sales and profits. The decision should to taken after seeking advice from licenced accountant or tax expert.
WHAT ARE TYPES OF DIRECT AND INDIRECT TAXES IN CYPRUS? The following taxes are imposed in Cyprus: > Income Tax - scaled from 0% to 19,500 to 35% > Corporation Tax 12.5% > Dividend Tax - 17% (0% for non-Cyprus tax residents) > Social Security - 12% ERs / 7.8% EEs GeSY (National Health System) - 2.9% employers , 1.7% employees > VAT - 19% standard rate
WHY DO HIGH NET WORTH INDIVIDUALS AND OVERSEAS COMPANIES RELOCATE TO CYPRUS? 1. High Net Worth Individuals. With the application of the Non-Domicile Status, they can enjoy tax free worldwide dividends. 2. Shipping Companies. Favourable tonage tax system. 3. Forex & Investment Firm Industries. Fast process to get license and low cost operation. 4. Holding Companies. Tax free dividend income. 5. International trading business. A Cyprus company is a low cost jurisdiction with access to EU markets. 6. Satellite Businesses. Low set up and payroll costs enable companies to have satellite offices in Cyprus where they can attract high calibre personnel at low costs. 7. Headquarter Relocation. Low set up and payroll costs with high quality service providers and high calibre personnel makes Cyprus a very attractive jurisdiction.
ARE THERE ANY OTHER REASONS WHY FAMILIES AND COMPANIES RELOCATE TO CYPRUS? Here are a few more reasons why companies, and families choose to work and/or live in Cyprus: 1. Lifestyle. Summers are 8 months a year with clean beaches, good weather, and easy pace of life. 2. Easy and convenient to work, raise a family, local transport, and do business 3. Most people speak English Language and are friendly with foreigners. 4. Attractive Tax Regime for Businesses, 12.5% Corporate Tax 5. Tax Free Dividends for Non-Domiciled persons 6. Incentives for Payroll (50% tax deduction for employees earning more than EUR100,000 7. Low Payroll Costs for middle level and lower level staff 8. Safe environment for businesses and families with low crime rate. 9. Strong Law System based on Anglo-Saxon laws which relies on the precedents of cases.
IS CYPRUS A 'TAX HAVEN' ? For many years now, Cyprus is not considered a tax haven as because of the following reasons: 1. Member of the EU (Cyprus follows EU laws & directives) 2. Complies with the OECD directives 3. Corporate tax is 12.5% which is not the lowest in the world. 4. Annual audit is required for all Cyprus companies 5. There are strict banking requirements based on European Central Bank regulations.
WHY SHOULD A UK REGISTERED COMPANY RELOCATE TO CYPRUS? 1. Attractive tax regime with low corporation tax of 12.5% , tax incentives and allowances. 2. An extensive network of double tax treaties. 3. Tax efficient regulations for holding company structures. 4. Attractive Intellectual Property Tax regime. 5. Highly respected reputation as an international financial center. 6. Well-developed infrastructure and financial services sector. 7. Cyprus is a member of the EU and Eurozone. 8. Cyprus has high calibre and experienced legal and accounting professionals.