As the relevant EU and International Rules for Anti-Tax Avoidance and Tax Base Erosion are getting stricter, Cyprus companies will have to continuously comply with the Substance, Management and Control Rules.
First and foremost, the Cyprus company should be clearly managed and controlled in Cyprus, in order to qualify as a Cypriot Tax Resident entity.
To this direction, some of the measures that need to be taken by the Cyprus company are the following:
• All material decisions of the company in the level of the Board of Directors and the General Meetings of Shareholders should be taken in Cyprus.
• Proper records and minutes should be taken by the Company’s secretary in these meetings.
• No General Powers of Attorney should be granted.
• Keeping at least one bank account in Cyprus.
• Rent an office in our IKV business center.
• Employ a director and senior staff of the Company in Cyprus and remunerate them accordingly.
• Incorporate the company with an adequate share capital to manage its operations .
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