Considering the ever intensifying initiatives around the world against superfluous establishments and the Base Erosion and Profit Shifting (BEPS) project by the OECD, the need to adopt the correct structure, with adequate resources in relation to the type and volume of business activities, becomes more imperative than ever before.
Cyprus remains an attractive jurisdiction for companies setting up European headquarters, due to its low rate of corporation tax, its favourable reliefs/credits on certain activities, and due to its infrastructure and skill set. Substance describes the various characteristics, which demonstrate that the company does indeed operate in the country where it is a tax resident and is not merely a "shell" company formed to avoid paying (usually much higher) tax in their home country.
The taxation of Cyprus companies is based on residence. All companies that are tax residents in Cyprus are taxed on their worldwide income accrued or arising from sources both within and outside Cyprus. Non-resident companies are taxed in Cyprus only on income derived from a permanent establishment or immovable property in Cyprus. A company is resident of Cyprus if it is managed and controlled in Cyprus. However, the main principle is that the registration or incorporation of such a company in Cyprus is not sufficient to render the company liable to tax in Cyprus.
If an international corporation implements substance, it can lead to significant benefits including the minimization of chances for disputes concerning the purpose of the operation by foreign tax, and other authorities.
Material substance may include:
- appropriately qualified employees and payment of the relevant payroll taxes
- a full paper trail of reporting and basis for major decisions on investment
- divestment, restructuring among many.
- preferably own offices with infrastructure / leased firm
- the registration of utilities such as water and electricity in the name of the company
- the payment of local professional rates and taxes
- existence of a telephone number, e-mail, and fax in the name of the company
- the presence of a company website, company logo and company stationery
bank accounts - the use of local professionals (IT support, courier services etc.)
Our Cyprus law firm AMG Mylonas & Associates, LLC is offering to our clients’ a unique all-encompassing Cyprus company set-up – European headquarters service for a very competitive fixed fee.
Benefits of choosing Mylonas Law to set up your Cyprus company structure:
- Transparent fixed fee;
- Incorporation and set-up of Cyprus headquarters;
- Lease Agreement with a prestigious Business Center in Limassol, Cyprus;
- Independent use of Private Office;
- Provision of two Cyprus resident directors, attending three board meetings per annum;
- All statutory filings, tax registration, opening of bank account;
- Bookkeeping and accountancy service;
- General administrative work inc. Payroll;
- Prestigious business address in the center of Limassol, on Agias Filaxeos Avenue, for your correspondence, business cards, letterheads, corporate website, etc;
- Reception Service;
- Telephone line, personal telephone service, phone answering in your company name and salutation;
- Call/messages forwarding;
- Collection of correspondence;
- Meeting area and board rooms.
- Your own branding and sign at the entrance of the office.
With this uniquely priced service, clients get all the benefits of Cyprus – European headquarters with significantly reduced costs.
Cyprus Virtual Serviced Offices
Establish a professional presence in Cyprus with AMG Mylonas Law virtual office service. Our service includes a virtual office space and address in a prime location in the center of Limassol, on Agias Filaxeos Avenue, call answering and mail handling services so that you run your business as smoothly as possible.
At AMG Mylonas Law, we believe that globalization is the key to a successful business. Despite your location, you can establish a corporate presence for your business without the expenses that come from renting an office space or hiring employees. Virtual Office Services provides the services and infrastructure to run your business professionally at a minimal cost.
A virtual office is a combination of off-site live communication and address services that allow users to reduce the standard office costs whilst maintaining business professionalism. Having in mind that a newly incorporated business may not have the initial capital as typically required in the business sector, we can assure that we provide virtual office services at an affordable fee. We look after all your business administration requirements, so that you can concentrate on what you do best in business. We provide offshore companies with an office space as well as all the services they need to take their small business to the next level, or downsize in an instant, launch a new venture, take on a temporary project or make your meetings more productive.
With our Virtual Office service, you will receive all the tools required to overcome the competition: a receptionist to answer phone calls, a corporate business address for all your mail, a voice inbox and fax number that will convert to email, and much more.
A Virtual office is the gist of your business and illustrates your effort to go offshore with the rewards being evident/remarkable. A Virtual Office is easy to set up and lacks nothing compared with other countries, where it may be obligatory to pay exorbitant fees, costs, taxes, etc.
- Good impression - Allows you to conduct your business in a professional manner:
- Cost saving - as the client does not rent actual office space, significant cost saving through the use of Virtual office is accomplished. Compared to only having a P.O. Box address, carrying a business address at a prestigious building allows the company to maintain a professional image at a low price. Moreover, a small start-up cost is also an attractive feature.
- Human resources management - Contrary to maintaining independent office operations, clients can rely on us to handle employment and relations with the Virtual office staff. In this way, the client can rest assured of the high standard of services provided, thus concentrating on their organization’s primary tasks.
A company that can demonstrate that it has substance, management, and control in Cyprus, can more easily claim the benefits of DTTs and take advantage of the favorable Cyprus tax regime unlike with corporations who do not have substance.
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