Business people interested in opening an insurance company in Cyprus have to know that such a company in this country needs a license in order to undertake activities in this field, according to the articles 8 and 22 of the Insurance Law. Our Cypriot company formation advisors can offer detailed information on the schemes for foreign insurance businesses operating here and can help foreign businessmen invest in Cyprus in this sector.
Insurance companies registered in third countries can operate as a branch registered under the Company Law.
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Conditions for third-country insurance businesses in Cyprus
Similarly to local companies, these businesses must submit an application to the Superintendent of Insurance, who can issue a license if the following aspects are complied with:
•The business has to be authorized in its country of origin to undertake activities in the same field;
•The company should have forwarded a three-year business plan;
•It has to name an adequately qualified actuary, depending on the business class it plans to follow;
•The business has to name a general representative in the country accepted by the Superintendent of Insurance as appropriate;
•The business should have a supplied and paid up capital in its country of origin equal to at least the sum necessary for an insurance company set up in Cyprus
•The business should possess assets in Cyprus equal to minimum 50% of the minimum guarantee fund requested for Cypriot companies and should have a minimum guarantee of at least one-quarter of the fund in Cyprus;
•Other requirements: our company formation specialists in Cyprus can provide more details on what these other requirements consist of.
Qualification for local insurance companies in Cyprus
To undertake activities in Cyprus, a local insurance company has to be issued a license, according to the articles 18 and 22 of the Insurance Law.
These licenses are issued for an indefinite period of time, depending on whether the company complies with the requirements of the Insurance Law and the related regulations.
A separate license is required for life and non-life insurance companies, and companies may not undertake non-insurance activities.
Taxes on insurance companies in Cyprus – presented by our Cypriot company formation agents
Companies which are resident in the country are subject to taxation. The income tax in Cyprus is 10%, being the most advantageous in the EU.
Moreover, the Income Tax Law offers important advantages to insurance companies in Cyprus, such as:
•Profits from security disposals are not taxed;
•Dividends received by a resident company from another one are not taxed at all;
•In case a resident business owns minimum 1% of the share capital of a foreign business, all dividends that are gained are not taxed, either, except in certain circumstances. Ourcompany registration experts in Cyprus can provide details on what these circumstances might be.
For complete details about an insurance business in Cyprus, or if you wish to open a Cypriot company, please contact us.