International investors aiming to invest globally in any type of investment (Equity or bond trading, property and others) now have an opportunity to conduct their business in an efficient way by choosing to register a public company in Cyprus and subsequently list the company on the Cyprus Stock Exchange’s Emerging Companies Market through simplified procedures and very reasonable costs.
A regulated Cyprus investment firm, which is an authorized Nominated Advisor (Nomad) to help facilitate the listing of foreign companies on the Cyprus Stock Exchange’s Emerging Companies Market (CSE/ECM).
All the above can be done through Cyprus registered companies, with their bank accounts, Boards and registered offices in Cyprus. The investors in the listed Cyprus companies which list on the Cyprus Stock Exchange’s Emerging Companies Market will get to benefit from the low taxation rate of 10% applied on net profits in Cyprus, no withholding tax on dividends declared to non-residents, plus the double taxation avoidance treaties that Cyprus has signed with more than 45 countries including the US, Canada, Germany, UK, France, Italy, Spain as well as with Russia, India, China, Qatar and the UAE to name a few.
For the double taxation benefits to apply, the majority of Board of Directors should be Cyprus resident.
A Cyprus based public company listed on the Cyprus Stock Exchange’s Emerging Companies Market is also ideal for thousands of Russian owned Cyprus private firms, which were used extensively to purchase property in Russia. Following the agreement on the amendment to the Russia-Cyprus Double Tax Treaty, which now awaits parliamentary ratification before implementation, Russia will impose a capital gains tax of 15% on capital appreciation from property investments on all companies, with the exception of publicly listed ones. The Cyprus Stock Exchange is a recognized stock exchange by the Russian tax authorities.
If the new issue is under EUR 2.5 mln value, there is no need to submit prospectus, with the listing on the Cyprus Stock Exchange’s Emerging Companies Market possible through Admission Document that will be prepared by the listed company’s Nominated Advisor (Nomad). If the new issue is more than EUR 2.5 mln in value, a prospectus needs to be submitted to the Cyprus Securities & Exchange Commission (CySEC) for approval before the listing on the Cyprus Stock Exchange’s Emerging Companies Market is completed.
Advantages of listings on Emerging Market of Cyprus Stock Exchange
– A listed company on a eurozone exchange
– Public Company is essentially a Holding Company qualifying for all double taxation benefits
– Company is entitled to engage in all types of investments according to Board of Directors decisions
– Beneficial owners can raise up to EUR 2.5 mln funds through very simple procedures
– Listed company can raise money through private placement of shares before or after listing
– Company can be used to acquire other companies, either by cash or through share exchange
– Major shareholders can pledge their shares in listed company to their bank and secure better pricing since they are pledging higher quality collateral
– No minimum daily volume requirement, hence no need to do fictitious trades
– No minimum share dispersion requirement, which means beneficial owner can hold 100% of the shares
– No minimum or maximum market capitalization restriction requirement, which means even small companies with a market capitalization of EUR 50.000 can list on the Cyprus Stock Exchange’s Emerging Companies Market
– Very reasonable costs, both to set-up and maintain the listing on the Cyprus Stock Exchange’s Emerging Companies Market.
The Cyprus Stock Exchange’s Emerging Companies Market is ideally placed to allow companies to operate in a listed environment but at the same time keep their costs under control.