Cyprus Company Registrations Boosted by Russian Confidence in the Island’s Corporate Services

Apr 30
21:16

2012

Hazel Jay

Hazel Jay

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Over the last two decades, Russia and Cyprus have grown to be solid economic partners and business allies. Major development is evident in the finance, trade, foreign investment and tourism fields.

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During 2011,Cyprus Company Registrations Boosted by Russian Confidence in the Island’s Corporate Services Articles the value of economic and trade ties between Cyprus and Russia reached an impressive 1.3 billion dollars, and the two nations realized a gross investment volume of one hundred billion dollars. Coupled with Russia’s GDP growth at 4.5%, the aforementioned year is regarded as a term of economic recovery for the large country.

Progress is expected to continue through this and next year with government officials and market professionals expressing optimism for the future during a recent finance conference.  Georgy Petrov of the Russian Chamber of Commerce and Industry indicated that much effort “to expand and deepen economic ties between the two countries'' was in force, and that the ties between his Cypriot counterparts and the Russia-Cyprus Business Association were crucial to this effect.

Russia is hoping to develop and establish its capital as an international financial centre, and this would greatly gain from Cyprus’ valuable expertise in this field, chairman of the Russia-Cyprus Council and CEO of the Bank of Moscow Mikhail Kuzovlev praised the small nation’s capabilities by stating that Russian investors choose the island’s financial services providers based on their “reputation, trust and transparency”.

Cyprus’ ranking is 40th out of 183 in the World Bank’s “Doing Business Report 2012”, a rise from last year’s 49th. With its wealth of resources for the development of trade and commerce, plus the benefit of VAT at just 17%, the island also possesses Europe's lowest corporate tax rate at only 10% on net profits, and investors receive their dividends tax free. 

The forthcoming endorsement of the Protocol to the Russia-Cyprus Double Tax Treaty, in conjunction with the island’s excellent location and commercial infrastructure, and its EU membership (which safeguards compliance with European tax protocol), probably makes Cyprus one of the most ideal settings to assist Russian companies in setting up their European business base.

Foreign investors are also fostered by the potential in the energy, telecoms and public infrastructure sectors. Growth is garnering momentum in these emerging areas, with direct investment by Russian entrepreneurs and their confidence in Cyprus’ corporate services generating an increase in Cyprus company formations.

A Cyprus company registration is a commonly utilized tool for Russian nationals wanting to establish an international commercial base and excellent platform for trade within Europe. There is much optimism in the corporate sector in Cyprus due to the rising demand of Cyprus company formations that are needed to assist the gas exploration and emerging telecoms industry obligations.

From a more social point of view, reports suggest that as many as 100,000 Russian nationals choose to live on and call Cyprus their permanent residence. Irrespective of the commercial scene, it is evident that people are incited to move to the small island for the many months of warm weather and the underwhelming winters compared to the freezing temperatures in Russia. Crucially, the Christian Orthodox religion is a defining attribute shared and revered by both societies.

The Cyprus company formation process begins with choosing and receiving approval of a company name from the Registrar of Companies. A qualified legal representative must submit documents to the relevant authorities, the company is then registered with our local tax authority, and if required the company will be registered with the VAT office.

As well as being Cyprus company formation agents, Meridian Trust professionals comprise of expert corporate lawyers and specialist tax advisors with extensive knowledge in international tax planning. With a combined thirty years of knowledge and proficiency, the company specialists are some of the best equipped consultants in the field, with clients that include specialized intermediaries like financial advisors, international law firms, business consultants, and international tax advisors.