Cyprus is a member of European Union. Yet at the same it has the lowest tax regime in Europe. That and extensive double taxation avoidance agreements network makes Cyprus a popular company formation jurisdiction.
The most suited company for international transactions is private company limited by shares and operated by Cyprus residents. There are no capital requirements for those companies. Private company must have at least one shareholder, one director. Directors can be corporate and if private company has only one shareholder, they can fulfill the duties of a company secretary. Still it is generally advisable to have a company secretary who is a Cyprus resident, since most of the necessary documentation will be carried out in Greek language. Registered office should be in Cyprus. Corporation tax is only 10% and there is no withholding tax on dividends paid to non-resident individuals and corporations. Annual returns indicating share capital, names of shareholders, directors and company secretary are mandatory. They must be filled with audited financial statement in Greek. Also the disclosure of profits is required. No exchange control is present. General meeting must be held yearly. Also there are additional requirements for the first annual general meeting.