The Cyprus Limited

A Cyprus Limited is similar to the German GmbH, the word "limited" translated from English, stands for limited liability. The Limited is a separate legal entity and limits the liability to the "Share Capital“.

As a rule, a limited company in Cyprus is founded with a share capital of €1,000 (usually 1,000 shares of €1 each). Unlike the German GmbH, the share capital does not have to be deposited, but merely represents the amount with which the owner is liable for the company.

Higher amounts are possible at any time, but a higher liability capital only makes sense if you need a bank loan for your business. This deposit must then also be evidenced in a bank account in the appropriate amount.

More about the Cyprus Limited

Cyprus has been an EU member since 2004 and is an international business and financial center with unique tax incentives. The official currency is the Euro. A limited company is an often underestimated instrument for legal tax optimization as well as for limitation of liability. Especially in combination with an administration by trust directors and trust partners, the beneficial owner of such a company enjoys not only the tax advantages and the limitation of liability, but also extensive anonymity.

If a Cyprus Limited is incorporated in accordance with the requirements of the Republic of Cyprus and is managed in accordance with the requirements of the country of incorporation, the Cyprus Limited enjoys extensive tax and legal international recognition (both within and outside the EU).

The Cyprus Limited is the most frequently chosen legal form of company in Cyprus and to carry out business activities from Cyprus. Fiscally, Cyprus is characterized by very low corporate tax rates in the EU. Cypriot companies are taxed on profits at only 12.5%, and there are additional favorable regulations with regard to withholding tax and capital gains tax.

This makes Cyprus a very interesting location for company formation and tax optimization within the EU. Company formation may only be carried out by licensed lawyers or tax advisors.

A Cyprus company can be used in various fields and industries, e.g. as a holding company for the management of assets, for international trade, as a service provider, for the protection of intellectual property, licenses or also in the field of e-commerce, or as a web administrator etc.