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Author: Prospectacy Business Services Team

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Company formation services in Cyprus

Tired of “greedy” tax systems of some countries that decrease your profit? Looking for the right place to run your business? Then Prospectacy Ltd is right what you need. The country in which you decide to start your business, in fact, serves a breeding ground for your later achievements. Thus, it is of utmost importance to choose the country that will be the best fit for your company. If you want to run a successful and prosperous business, we say “just go for it”; go to Cyprus.  We are here to help you with your Cyprus company formation.

There are certain things you should know and consider before forming your company in Cyprus. In other words you should be aware what Cyprus can offer you.

One of the reasons, which makes Cyprus an excellent place for your company formation is the fact that it is considered to be among the most suitable and attractive jurisdictions in Europe, as it has advantageous tax system for limited liability companies. With its current legislation, Cyprus offers one of the lowest tax systems in the European Union, which increases its role as a financial center. The extensive double tax treaty network makes Cyprus ideal for any kind of investment. It has one of the lowest tax rates in the European Union at 12.5%. Another advantage of tax system of Cyprus is that most international transactions are free of VAT. This means that you can make transactions without paying value added taxes that are charged in many other countries. Unlike the above mentioned “greedy” tax systems, Cyprus has the one that charges companies based on their income accrued. Also there is no withholding tax on dividends and no capital gains tax.

There are certain requirements your company has to meet, In order to be formed in Cyprus. It should have;

  • At least one shareholder (If the future owner of the company requires complete anonymity, then your company can be provided with nominee shareholders)
  • At least one executive and secretary (In the case of international companies, it is important, both for tax and for administrative purposes, that the management and control of the company are carried out in Cyprus.
  • Legal address (this can be the real office you rented or just any other the legal
  • Tax number, which must be indicated on all accounts of the company.

It is also recommended for the authorized and issued share capital of the new company to be at least 1,000 shares, at 1 euro each share. Payment for shares is not required. The number of shares can be changed for a nominal fee. You can run your business in Cyprus the same way as you would do it in your country; companies in Cyprus may have 100% foreign capital.

Taking all these facts and many other advantages into account we will help you in the formation of your ideal company in Cyprus.

What is Corporate Tax and How to pay for It?


Corporate tax refers to the tax placed on the taxable profits of companies and other profitable organizations, such as societies, associations, clubs and unincorporated entities. The taxable profits include the profits from capital gains, also called as chargeable gains, and taxable income, including investment or trading profits.

When it comes to Cyrus company formation, there are certain rules and regulations that entrepreneurs and business must adhere to in order to operate their business, including the need to pay for corporate tax. The country has a favorable taxation regime that’s why a lot of foreign investors are very interested in registering their company in this country.

Organizations and companies based in the UK are expected to pay a corporate tax on every taxable profit, regardless of where in the world the profit comes from. Once a company is operating in the United Kingdom, but is not based in the country, like operating through a branch or an office, the corporate tax must then just be paid on taxable profits that arise in the UK.

How to Pay for Corporate Tax?

To make sure that your business is paying the required tax, your corporation has to register for corporation tax as part of establishing a private limited company within 3 months of the beginning of the trade (e.g. receiving payments and making sales.) As a corporation, you are responsible for keeping accurate accounting records that you can use in preparation for the annual tax return of your company.

Corporation tax is actually paid on every profit earned by the company of business, which include the trading profits, investments and the money made from chargeable gains or selling assets.

Also, business tax is imposed on every relevant business entity at the end of each accounting year. It is charged for the profits accumulated during the accounting periods of the business. The tax must be paid within the deadline. Filing of tax return should be completed twelve months after the end of the period of accounting.

If correctly structured, a company in Cyprus can conduct an international business in a tax efficient manner. Cyprus company formation enables business owners to legitimately conduct a business in the country and internationally subject to a tax rate of only 12/5 percent, which is among the lowest rates in the EU. Also, Cyprus is ranked as the twentieth freest economy in the world in the 2012 Index of Economic Freedom conducted by the Heritage Organization.

Tips to Use Your Capital More Efficiently


Proper management of your capital is one of the major steps to ensure that you’re maintaining sufficient resources for the daily operation of your business. Proper using and allocation of your business capital always involves striving to reach the balance between maximizing the asset returns and minimizing the insolvency risks.

It’s also advisable that business owners or anyone who is running a business whether it is a large or small business, should take note about the truth that while long-term finance analysis is focus on planning strategically, the managing process of the capitals deal with every day operation. If you are a business owner and struggling in using your capital, here are the most important tips that you can consider to utilized your business capitals more efficiently:

  • Perform an accurate forecasting of cash flow

This is one of the most important tips you should consider if you want to use your capital in a more efficient way. The actions that perform by your business competitors, the effects of unforeseen or unexpected events and losing your valued customers can generally bring big impact in your business performance. Its’s also recommended by most business experts to consider the unanticipated demand of capital.

  • Establish an effective procedure in handling disputes

Proper managing your disputes have also great impact in your business capital. So, it is very important to establish an effective procedure in handling them. This process must be connected to the customers of your business. This move could be expected as the main step in using your business capital more efficiently. Also, you can expect your dispute management [process to enhance customer service, and at the same time freeing-up more time for the legitimate activities like sales, order entry and cash collection. As you reduce business operating costs by this significant tip, you are starting to use your capital in a more efficient manner.

  • Capital must be utilized in business wide basis

Another important tip every business owner should consider to used their capital more efficiently is by ensuring that their cash are being used in multiple functions. That is usually being done by using cash which the business generates in one place to another.


Are you a business owner who need help about using your capital more efficiently? If yes, then you can always consider these tips above. You can also ask the assistance of Company Formation in Cyprus. No matter how small or big your problem is in handling your business capital, they can always provide you the best solution.



Tips to Plan Your Business Goals and Market Dynamics


Planning your business goals is very critical to its success. When you have carefully and strategically planned your business goals, you will be able to smoothly run your business. In other words, you have the proper guide that you can always look at to target the focus of your business. As far as planning your business goals and market dynamics, you can consider some of these important tips:

  • Set a descriptive business goal

What your minds cannot visualize, is what the mind cannot achieve. When you are planning for your business goals and market dynamics always remember that thoughts are also things. The more you spend time in describing & visualizing your business goals, then the better chances you’ll be able to reach them. Planning about your business goals and market dynamics is not always easy as what other people might be thinking of. So, be descriptive and well-detailed enough as possible, because the more you do this meticulously, the more you will be able to achieve the goals that you have planned.

  • Achievable

When you are planning for your business goals and market dynamics, make sure that they are achievable. This does not really mean that you cannot plan lofty goals, most especially in a long-term. It simply means that you need to plan for goals in your business that are achievable enough. Plan one which you know and really believe in yourself that you can reach it. no matter what that business goals are, make sure to at least have the potential in obtaining them. When you choose to plan for those business goals that are achievable, you can guarantee to experience long-term & short-term benefits that will come together with business success.

  • Create strong reasons

When you are planning for your business goals and market dynamic, make sure that you’re also creating strong reasons for that. You can ask yourself if you have profound and deeper reasons for wishing to reach that goals in your business. Well, this is not all about the superficial reasons. It is all about the meaningful reasons. By simply telling yourself that you really want to reach your goals for you to have more profits and better car will not help. What will help you is by developing or building up a meaningful reason.

With the help of these tips and the help of Cyprus Company Formation, you will be able to achieve success in your business. Cyprus Company Formation is always ready to help you when it comes in planning your business goals and market dynamics.





How to optimize your taxes


Are you in search for ways to address the tax issues? There are reasons why Cyprus citizenship by investment can change your life. One of it is about optimizing your tax. Those who are looking for opportunities to optimize their tax can be attracted to the Cyprus’ law tax rates and there is also the possibility to restructure business and the optimization for tax.

Cyprus tax advantages in your business

Tax planning in Cyprus can reduce or fully eliminate your tax liabilities that are associated to some international activities. A structured Cyprus entity in a tax plan could:

  • Reduce your taxation within the country in which your incomes came from.
  • Reduce the amount from receiving money that were earned outside of the country.
  • Reduce the taxation for ultimate shareholder in the structure of tax planning.
  • Reduce the tax for international business activities, thus increases the return of investment.

Tips on how to optimize your tax and help your business save money

Shift of income for the following year

Paying the taxes on income that you have received throughout the year is your responsibility. When the end of the year came, you can push some client and customer bills to the following year, that can give them a larger period and ensure that you will pay if that income will come to your company.

Charitable contributions

You can gain tax advantages if you donate to some charitable institutions. Donations can help to reduce your tax expenses. Aside from reducing your tax, you can also have a warm feeling that you do something for the other who are in need of help.

Invest equipment

If you will need additional equipment like office furniture, machines and computers, then you have to buy these before the end of the year comes. You can benefit from its depreciation that can lower your income tax.

Organization of expenses

Organizing all your business expenses during the whole year can help you by deducting them when the end of the year comes. Sometimes, small business didn’t keep track their expenses, so they are not deducting it. Make sure to keep of your business expenses and separate them from your personal expenses, because it can be a big help for your tax.

Working with tax laws’ Professional

Sometimes, tax law tends to change, and being updated to those changes is very important for you to comply with the law. The best way of keeping the right track with tax laws, is to work with some professional tax adviser.