International investors wishing to invest in any type of investment (stock or bond trading, real estate and others) worldwide now have the opportunity to conduct their business in an efficient manner by opting to register a public company in Cyprus and that Companies subsequently listed on the Cyprus Emerging Companies Market Stock Exchange through simplified procedures and very reasonable costs.
A regulated Cypriot investment firm that is an authorized nominated adviser (Nomad) to facilitate the listing of foreign companies on the Cyprus Stock Exchange’s Emerging Companies Market (CSE/ECM).
All of this can be done through Cyprus registered companies with their bank accounts, directors and registered offices in Cyprus. Investors in the publicly traded Cypriot companies listed on the Cyprus Stock Exchange’s Emerging Companies Market benefit from the low 10% tax rate on net profits in Cyprus, no withholding tax on dividends declared to non-residents, plus the Double Tax Avoidance Agreement which Cyprus signed with more than 45 countries including the US, Canada, Germany, UK, France, Italy, Spain, as well as Russia, India, China, Qatar and the United Arab Emirates to name a few.
In order for double taxation benefits to apply, the majority of the board of directors should be resident in Cyprus.
A Cyprus-based public company listed on the Cyprus Stock Exchange’s Emerging Companies Market is also ideal for thousands of Russian-owned Cypriot private companies that have often been used to buy real estate in Russia. After agreeing to amend the Russian-Cyprus double tax treaty, which now awaits parliamentary ratification before implementation, Russia will impose a 15% capital gains tax on capital gains from real estate investments for all companies except listed companies. The Cyprus Stock Exchange is an exchange recognized by the Russian tax authorities.
If the new issue is valued at less than EUR 2.5 million, no prospectus needs to be filed as listing on the Cyprus Stock Exchange’s Emerging Companies Market is possible through an admission document issued by the listed company’s nominated advisor (Nomad) is created. If the new issue is worth more than EUR 2.5 million, a prospectus must be filed with the Cyprus Securities & Exchange Commission (CySEC) for approval before the listing on the Cyprus Stock Exchange’s Emerging Companies Market is completed.
Benefits of being listed on the Emerging Market of Cyprus Stock Exchange
– A publicly traded company on a Eurozone stock exchange
– The public company is essentially a holding company that qualifies for all double taxation benefits
– The Company is authorized to make all types of investments according to the decisions of the Board of Directors
– Beneficial owners can raise up to EUR 2.5 million in funds through very simple procedures
– Listed companies can raise money before or after the listing by private placement of shares
– The company can be used to acquire other companies, either in cash or through stock exchange
– Major shareholders can pledge their shares in listed companies to their bank and secure better prices by providing higher quality collateral
– No minimum daily volume required, so no fictitious trades need to be made
– No minimum share distribution required, meaning the beneficial owner can hold 100% of the shares
– No minimum or maximum market capitalization restrictions, which means that even small companies with a market capitalization of EUR 50,000 can be listed on the Cyprus Stock Exchange’s Emerging Companies Market
– Very reasonable costs, both for setting up and maintaining the listing on the Cyprus Stock Exchange’s Emerging Companies Market.
The Cyprus Stock Exchange’s Emerging Companies Market is ideally positioned to allow companies to operate in a listed environment while keeping their costs under control.