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Copyright © 2013 - 2018.  International-Formations.com is a trading name of Tai Pan Management Services Ltd.
Company Service Provider Licence No. TC004077 Registered in Hong Kong. No 1942748
All rights reserved.

Please note that TMS FZE provides an execution only service in respect of the formation of companies, opening bank accounts and related services.
Therefore comments or suggestions made by us should not be considered as formal advice.
Should you require formal structuring advice, please visit our sister company TaiPan.


Last update 27 Nov 2018

E.U. Trading  Companies

Clients intending to trade within the E.U. should consider a company registered in Europe. VAT registration is often a requirement e.g. for digital downloads, and is possible in any of the following jurisdictions:




CYPRUS

Read more

Relatively easy to register for VAT.

VAT rate 19%

Corporate tax 12.5%

Salaries (and consultancy fees) not subject to withholding tax or income tax for non residents.

IRELAND

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UNITED KINGDOM

Relatively easy to register for VAT.

VAT rate 23%

Corporate tax 12.5%

No audit required for small companies.

Maximum tax rate on profits - 19%, reducing to 17% in 2020.

VAT registration threshold £85,000, VAT rate 20%

Known worldwide & respectable, can be used in an agency structure.

Further information about the above jurisdictions

CYPRUS RESIDENT COMPANY

Cyprus is an independent country in the Eastern Mediterranean south of Turkey with a population of some 875,000.

It is a full member of the EU and is also part of the Euro zone. The Governing law is the Cyprus Companies Law, Cap. 113 and is closely based on the 1948 UK Companies Act.  

Cyprus is a Common Law jurisdiction.

In order gain access to EU markets and to be able to register for VAT a Cyprus company must be formed as resident company. This means that management and control must be exercised from Cyprus. In order to archive this, it is normal to:

  1. Appoint a Cyprus resident as director.
  2. Establish a trading address (with telephone number) in Cyprus.


Director & shareholder requirements

Cyprus maintains a public registry from which details concerning the company's officers and shareholders may be obtained by means of a personal search (online searches are also possible, but limited).

Corporate directors are not permitted in Cyprus, however corporate shareholders are allowed. As mentioned in the introduction above, professional directors / nominees are frequently used both to protect privacy and to establish management & control.

Filing Of Accounts/Financial Statements For Cyprus Companies

Accounts (locally referred to as Financial Statements) do need to be prepared, audited and filed with the Inland Revenue in Cyprus. We offer all the necessary services e.g. bookkeeping, VAT registration (where applicable) and maintenance, accounting etc. and can arrange for audit with a local firm of Chartered Accountants.

Public records

Cyprus has a public register of officers & shareholders. (Please see directors & shareholders)

Shelf companies

Shelf companies are possible, but we have found that bank account opening can be delayed when using a shelf company.

Dividends & Salaries

Dividends may be distributed to shareholders outside Cyprus without further taxation. In general terms, salaries (and related consultancy fees) may be paid to a non-resident of Cyprus free of all taxes and social insurance charges.




















Cyprus tax rates and VAT












Corporate tax rate 12.5%

Full EU member since 2004  

Low VAT rate - 19%


Cyprus resident companies are taxed at 12.5% on profit. (Profit is income less allowable expenses e.g. general overheads, travel, salaries, consultancy fees etc).

Cyprus also has a wide network of tax treaties, particularly with EU & CIS countries to avoid double taxation.



The obligation for trading companies to register for VAT makes a Cyprus company an ideal vehicle for trading within the EU. We can arrange for Cyprus companies to obtain VAT registration and provide book-keeping/accounting services to ensure compliance.

IRELAND COMPANY

Ireland is an independent country in Western Europe.

It is a full member of the EU and is also part of the Euro zone. The Governing law is the Irish Companies Act, 2014.

Ireland is a Common Law jurisdiction.

Although Ireland had to be bailed out due to an implosion of its banking sector from 2010, it has since largely recovered. Throughout the period the Irish government were insistent on maintaining Ireland’s attractiveness by having a low corporate tax rate of 12.5% (the same since 2003). Ireland has long sought inward investment and has considered a low corporate tax rate as a major part of that strategy.

Another attractive element of the Irish ‘package’ is that companies are free of audit if their turnover is less than €8.8m and the balance sheet (assets) is less than €4.4m.

Please contact us for further information.