أسئلة وأجوبة
Pros and Cons of establishing a company or a branch in Cyprus
Mr Esquire
After greetings
My name is Mostafa and I am Egyptian. I want to inquire about the establishment of a limited liability company in Cyprus. Its activity is import and export.
I have an import and export company already. Is the establishment of a new company in Cyprus better than a branch of the company?
What procedures, costs and advantages can be obtained. Sorry for the delay.
With thanks and appreciation
Dear Mostafa.
Thank you for getting in touch with me.
Our firm AGP & CO (www.agplaw.com) can assist you in the setting up of a local company or of a branch of your existing company.
Setting up a company, instead of a branch, may have better tax results for you because the company's profits will be taxed at 12.5% on net profits (effective tax can be as low as 6-7%) and profits are distributed free of withholding tax from Cyprus.
Whereas, setting up a branch, will be subject to Cyprus corporate tax in the profits of the company (i.e. similar to the setting up of a company), but will be subject to the Egyptian tax when profits are accumulated after corporate tax is paid.
Please get in touch with me via email (angelos.paphitis@agplaw.com.com) and we shall be happy to provide you with full details.
