Under Cyprus Companies Law, Cyprus holding companies (CHC) can be constituted either as a Private Limited Company (Ltd) or as a Public Limited Company (PLC)
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A private company can be converted into a public company through a simple filing procedure prior to listing.
The law on re-domiciliation creates new dimensions to international investors and traders as non-Cyprus companies can now be re-domiciled in Cyprus and can benefit from the favorable provisions of the Cyprus legislation.
The incorporation procedure for a holding company is simple and straightforward and is effected by filling the Registrar of Companies and the Company’s Memorandum and Articles of Association. The procedure is estimated to be completed within a period of two weeks.
A Company is considered as a tax resident of Cyprus if it is managed and controlled from Cyprus.
A holding company resident in Cyprus is fully liable to tax on all of its worldwide income at a single rate of 12,5% which is one of the lowest in the European Union.
A non-resident company is taxed only on income derived from a permanent establishment in Cyprus and on rental income from property located in Cyprus.
A credit for tax on profits and gains of a Cyprus Holding Company may be offset against tax payable in Cyprus for the same income unilaterally under domestic law, even in the absence of a double taxation treaty.