Cyprus, a country in the Eastern Mediterranean, has emerged as a preferred destination for international businesses owing to its locational advantage, EU membership, and favorable tax regime. Of all the corporate entities available, BCS Companies, or Foreign Interest Companies, are highly attractive foreign investor-friendly models that can make their operations easier. This article describes what is a BCS Company, who can benefit from its incorporation, its main advantages, and how to incorporate it.

What is a BCS Company in Cyprus?

A BCS Company or Foreign Interest Company is a private limited foreign owned company in Cyprus by companies or individuals.

Intended to attract overseas investment, the businesses enjoy favorable taxation, hence emerging as the most sought after company type for foreign firms and business persons. Possessing legal personhood, a BCS Company is able to enter into contracts, acquire property, and conduct business in its own name, with the registered office being the center of all administrative and legal activities.

Who can make use of a BCS Company?

BCS Companies are appropriate for most individuals and institutions, including:

Foreign Investors

The overseas investor who would wish to access the European market can possibly do so through the business environment-friendly climate in Cyprus through a BCS Company.

Multinational Corporations

Large corporations desiring an EU regional headquarters utilize the geographical location and fiscal benefits of Cyprus.

International Entrepreneurs and SMEs

International growth can be achieved by small to medium enterprises using Cyprus as an entry point for the EU, maximizing low taxation and market access.

Key Benefits of a BCS Company in Cyprus

The presence of a BCS company in Cyprus provides numerous benefits

Low Tax Rate: Cyprus possesses one of the lowest corporate tax levels within the EU at 12.5%, increasing the company’s profitability.

Double Taxation Agreements

Since it has over 65 treaties, including the UK, Russia, US, and China, double taxation on border transactions is not a problem for companies.

Tax Exemptions on Dividends and Profit

BCS Companies enjoy tax exemptions from profits of foreign subsidiaries and dividends and therefore are best for holding structures.

No Tax on Capital Gains

Capital gains from disposing of securities or shares other than in Cyprus are exempt from tax, safeguarding investor profits.

EU Single Market Access Duty-Free

As an EU member nation, Cyprus offers duty-free access to the single market of the EU, opening up wider trading opportunities.

Personal Taxation Relaxed

Directors who are foreign are eligible for relief on dividends, interest, and foreign-source income under the Cyprus non-domicile regime.

IP Box Regime

Companies that generate turnover from intellectual property are subjected to an effective tax rate of just 2.5%, and thus are attractive to technology and R&D enterprises.

Terms for the Incorporation of a BCS Company

To form a BCS Company, the following terms need to be met:

Foreign Ownership

Non-Cypriot persons or entities should own the majority share.

Residency and Work Permits

Workers and owners can get residency and work permits by applying on behalf of the company.

Minimum Employees’ Salary

The employees with high qualifications must receive a minimum gross monthly salary of €2,500.

Professional Qualifications

The employees must possess adequate qualifications or at least two years of professional experience in the same profession.

Registered Office

Administrative and legal needs are fulfilled with an office in Cyprus.

Limited Liability

Shareholders’ liability is capped to the contributed capital, protecting their personal wealth.

Step-by-Step Procedure to Form a BCS Company

The process to form a BCS Company becomes simple with proper guidance:

› Company Name Approval

Provide an original name to the Registrar of Companies of Cyprus to be vetted, so that it does not sound similar to

already registered names.

› Document Preparation

Draft the Memorandum and Articles of Association, stating the purpose and structure of the company.

› Shareholder and Director Appointment:

Minimum one director and one shareholder to be appointed; it is advisable to have a resident director in Cyprus for tax reasons.

› Registered Office Setup

Registering an office in Cyprus for official correspondence.

› Corporate Bank Account Setup

Open a corporate bank account with stringent KYC compliance rules.

› Tax and Social Insurance Registration

Registration with Cyprus tax authorities and social insurance authorities.

› Staff Recruitment

Employ staff, exercising care to maintain the minimal pay and requirement terms.

How Papasavvas & Liskavidou LLC can Assist

Papasavvas & Liskavidou LLC offers detailed assistance within the registration of a BCS Company, including steps ranging from name registration and taxation to staff recruitment and applications for work permits. They ensure a smooth process so that businessescare able to concentrate on growth while being in accordance with Cyprus’ laws.

Why Incorporate Your BCS Company in Cyprus?

Cyprus is a business-friendly destination with strategic advantages, and therefore an ideal launching pad for expansion worldwide. Its tax-free economy, EU market access, and hospitality-based legal environment offer an ideal launching platform for commercial success. Incorporating a BCS Company in Cyprus is not a business choice—it is a business recipe for success in a thriving economy.