November 2, 2011, 11:31 pm
1. What is the minimum share capital?
One can choose between two most popular types of companies that are usually set up in Cyprus. For a Private Company Limited by shares, there is no minimum share capital required, but if the choice is the establishment of a Public Company limited by shares, then the initial share capital has to be at least 15,000 CYP.
2. What are the Company Registration fees?
BridgeWest provides registration procedures of under 2,000 Euros. This amount includes all required services, such as Trade Register Fees, Company Seat, Nominee Shareholders and Directors (if required).
3. What are the costs to rent an office space?
In order to rent an office space in Cyprus, one must firstly choose the area where he wants to set up the office. According to this characteristic, the cost per square meter is around 12-15 EUR per month for renting an office space.
4. What are the costs for a virtual office if the client will not rent a location?
Depending on the package of activities chosen, the costs for a virtual office may vary. Anyhow, this type of office must have at least a phone and fax number, as well as a mail address for the registered company. Prices begin at about 50 EUR/month, including secretarial support, phone answering and mail forwarding.
5. What is the cost of hiring an employee?
In Cyprus, the average monthly salary for an employee is approximately 1,800 EUR. In addition to that, the employer has to pay social insurance contributions of 8.5% of the gross salary per employee. Moreover, an employer must also contribute with a 2% rate to the social cohesion fund on all earnings of each employee.
6. What are the costs of hiring a local accountant?
It is recommended that a local accountant is hired to manage all financial matters and deal with invoices, taxes or balance sheets of the company in Cyprus. Depending on the services provided, costs range from 150 to 400 EUR for a local accountant.
7. What is the yearly corporate tax?
All companies in Cyprus must pay a corporate tax every year at a rate of 10%, one of the lowest rates in Europe.
8. What is the yearly dividend tax?
The annual dividend tax rate in Cyprus is 15% for dividends paid to residents. However, there is no tax for dividends paid to a non-resident shareholder.