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WEBSITE DESIGN . SOCIAL MEDIA MARKETING
CONTENT CREATION . CONSULTING SERVICES
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Corporate Economic Substance in Cyprus
In cooperation with legal advisors and local serviced office operators, Zartec, provides clients a full range of services to establish fully compliant economic substance in Cyprus.
Several jurisdictions, including Cyprus, have adopted legislation which defines 'corporate economic substance'. In general all these regulations required that companies can prove that they have a physical presence and control in the jurisdiction that they claim to have tax residency.
It is generally accepted that a company resides, for tax purposes, where its real business is carried out and the 'real business' of a company is carried out, not where the trading operations are taking place, but where the central management and control of its business actually takes place. The Cyprus Law No.118(I)/2002 in Section 2 identifies the meaning of a tax resident company and, in effect, implements the above rule that a company is tax resident of Cyprus only if its management and control is exercised in or from Cyprus. Note that according to this rule, the place of incorporation of a company is therefore irrelevant.
Corporate economic substance consists of two main criteria. One is to have employees in Cyprus and the second is to have a physical office in Cyprus. In addition, it is recommended for a company to have telephone line, email address and website etc to strengthen its position and to strengthen the application to open a bank account.
We offer add-on services to ensure that the company’s fiscal residency is robust, properly established, and managed.
Our Substance services include following (but not limited to):
> Recruitment and appointing of Cyprus resident directors and employees;
> Dedicated fully furnished office space with workstations;
> Land-line telephone and fax with bills in company's name;
> Payroll services including monthly submissions to social insurance;
> Preparation and submission of annual employer's tax return to social insurance;
> Arranging obligatory annual employer's liability insurance;
> Payment of obligatory annual municipality professional fees;
> Bank account opening with local banks;
> Execution of documents and payments instructed from local substance office;
> Bookkeeping / accounting and tax compliance services;
> IT services including setting up a website and email addresses;
> Content writing for website based on the information provided by the client;
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