Legal certainty
Is a Cyprus Limited legally secure?
Especially clients who are starting a business abroad for the first time sometimes have concerns about the legal security of a foreign company. Can I access my funds without restrictions? Is my bank account secure? Is my project tax-compliant? Is the mafia particularly active in the country, making horrendous “special fees” and corruption commonplace?
In Cyprus, your assets are in a safe haven.
Cyprus is preferred by business people from all over the world not only because of its business-friendly environment and advantageous tax legislation, but also because of its independent judiciary and the existing legal certainty.
Cyprus is characterized by decades of stability and low crime rates among both its population and its administration. Business owners in Cyprus are unlikely to experience any unpleasant surprises. The environment is always friendly, solution-oriented, and very open and accommodating to foreign entrepreneurs.
Cyprus has a long tradition as a financial and trading center and continues to pursue its efforts and favorable legislation.
English is widely spoken as a business and government language. After all, Cyprus is a former British colony.
The right bank for a Cyprus Limited.
The choice of bank is crucial for the security of the company’s assets. Clients have access to numerous reputable banks, such as the Hellenic Bank in Cyprus, Bank Alpinum in Liechtenstein, Credit Suisse in Switzerland, and many others.
In fact, many bank customers of Marfin Laiki Bank (Cyprus Popular Bank) and Bank of Cyprus lost significant deposits during the escalating banking crisis in spring 2013, namely a significant portion of their liquid assets exceeding EUR 100,000. This bail-in affected 4% of all bank customers. However, CMC clients were not among these, as these banks’ problems had been known for many months and customers had been encouraged to switch banks promptly and consistently. In any case, CMC always recommends Hellenic Bank as the first local bank to contact. It is very modern, offers low fees, is service-oriented, and, above all, is stable. For balances over EUR 100,000, the above-mentioned banks are among the options.
The Bank of Cyprus returned to a profit of approximately €40 million in the first quarter of 2014 after several very loss-making quarters, although we still advise caution with the Bank of Cyprus due to expected loan defaults. The Cypriot banking sector is recovering slowly but steadily.
In principle, you have a choice of many jurisdictions and do not have to limit yourself to Cypriot banks.
Important information: Trustees do not have access to bank accounts.
Protection against legal disputes.
A Cypriot Limited company provides indirect protection against cease and desist letters and legal disputes with business partners, as well as with authorities. However, due to the company’s headquarters in Cyprus, confusion often arises regarding the competent jurisdiction, and creditors have little confidence in successful enforcement. For example, e-commerce clients who, in the era of the European Economic Area, easily sell their goods throughout Europe through a Cypriot Limited company experience a significant reduction in the number of cease and desist letters from competitors. This saves time, stress, and legal costs.