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OpusGuide Cyprus – Limited
partnership (the “LP”)
Cyprus has the lowest rate of income tax in the whole
of the European Union. At the same time, the tax system provides for a range of exemptions including income
from many sources, which may result in obtaining even
lower tax rates. Amongst the extra benefits of registering
a company in Cyprus, one could also mention the strategic position of the country, its wonderful infrastructure
and the low cost of specialist services.
Relationship Manager
Tel. +357 24 62 99 62
[email protected]
Limited partnership without separate legal personality registered under the CY
Partnership Law, Cap.116 – Limited Partnership.
LEGAL FORM
POLISH EQUIVALENT
SPHERE OF ACTIVITIES
GOVERNING BODIES
AND OTHER IMPORTANT
POSITIONS / FUNCTIONS
Małgorzata
Michalska-Ioannou
Limited partnership under the Polish law
Any operational activities; no requirement to obtain permits (not a regulated
activity).
partners/owners
At least one general partner who is liable for all the obligations of the LP and at
least one limited partner, who is not responsible for the LP’s obligations beyond
the amount he/she has contributed to the LP.
management
The management of the LP is conducted by the general partner(s) and in case of a
conflict this is resolved by the majority of partners.
supervisory
There is no obligation to appoint a supervisory body; but it is permitted to do so.
other
The name of the partners are registered in the Registry of Companies (RoC); this
information is publically available.
nominee partner
The economic owner(s) of the LP may act through a nominee partner within the
institution of a Trust Deed (the Trust Agreement). The Cypriot laws secure a full
anonymity.
trust / fiduciary
management
The management is conducted through fiduciary services.
USE OF TRUSTEESHIPS
MINIMUM REGISTERED EQUITY
No requirements for minimum registered equity. Contribution can be also made
in labour.
* data binding as of 28th April 2014
ACCOUNTING/AUDIT
The LP is obliged to keep books of records; and if the turnover exceeds €70.000
per financial year, there is a requirement to prepare and file audited financial
statements.
HEADQUARTERS
The LP is established and registered in the territory of Cyprus, and declared full
details of the office / address upon the registration.
TIMESCALES
Establishment
LP must be registered to the register of the RoC; failing to submit registration form
to the RoC does not invalid the LP articles of association, however, penalties are
available.
Dissolution
The LP can be registered for a fixed term or if entered into for an undefined time,
the LP can be dissolved by any partner giving notice to other(s) of his/her intention to dissolve the LP.
Strike-off
The LP can file an application for a strike-off if it ceased its activities.
BANK ACCOUNT
NATIONAL CURRENCY
No requirements to open a bank account in Cyprus.
Euro
OFFICIAL LANGUAGE
Greek and Turkish. Internal company documentation may be written in English as
well, including the LP articles of association.
FINANCIAL YEAR
In general, the financial year must be marked as 12 consecutive calendar months,
however it may also be changed.
INCOME TAX (CIT)
LP, due to the fact of not having a legal personality, is not subject to the income tax.
Following the principle of see-through approach, its income is taxed at the hands of
partners, according to their participation in LP’s profit.
The income of the partners is taxed accordingly to the tax implications in their tax
residency jurisdiction.
SPECIAL DEFENSE CONTRIBUTION TAX (SDC)
SPECIAL TAX REGIME
SDC does not apply to LP, since it is a see-through entity.
Special tax regime should be checked at the level of partners.
No special regimes for the LP.
WITHOLDING TAX (WHT)
Only royalties for the rights used in Cyprus are subject to withholding tax at the
rates of 10% and 5% (in case of films). The rate may be reduced or exemption applied on the grounds of double tax treaties or an European Directive.
ANTI-TAX -AVOIDANCE RULES
Transfer pricing: NO transfer pricing in Cyprus (but arm’s length principle shall
be applied).
Thin capitalization: NO.
CFC: NO.
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