E Commerce has a tremendous huge impact on our everyday lives. The COVID 19 pandemic was a significant contributor to the increased use of online purchases.
Businesses and Individuals were pressed to settle their affairs and purchases online. Companies that previously operated via a brick and mortar-operating model were forced to restructure and offer their products and services via the internet.
It was a driver to change for most businesses.
What is E Commerce?
Pioneers like Amazon and Alibaba long grasped the power of the internet as a global market place where products and services can be sold in different jurisdictions.
Nowadays the need to have a digital platform for any business is paramount: You multiply your clientele and revenue!
You can start an E Commerce business in Cyprus and sell virtually anything. E Commerce owners can also benefit from online marketing, networking and data collection to expand their revenues and profits.
In other words, it is a booming industry and is showing no sign of slowing down anytime soon.
Why use Cyprus as a jurisdiction?
In a nutshell, Cyprus is an ideal jurisdiction to establish your E Commerce business because of its favourable tax regime.
That ties well with the fast company incorporation process, English speaking and skilled workforce, and a stable, pro-business government make it a very attractive option for e-entrepreneurs.
Cyprus is an EU Member State since 2004. By setting up a Cyprus company for your E Commerce business gives, you access business and trade throughout the whole EU. Nearly all EU nationals use the internet on a daily basis and make purchases online. Plus it opens doors easier when you wish to open a bank account for your new Cyprus company.
The island's location is also considered favourable, as it is a link between Europe, North Africa and the Middle East.
Taxation for E-Commerce businesses in Cyprus
Cyprus is an ideal jurisdiction to establish your e-shop business because of its favourable tax regime. The island’s
corporate tax rate of 12.5%, one of the lowest in the EU, is a significant pull factor.
Furthermore, if you as an individual have not been living in Cyprus in the last 17 out of 20 years you can consider becoming a tax resident of Cyprus and obtaining the much awaited non domicile tax status. This allows you to pay minimal taxes on dividends that you declare on your worldwide income in Cyprus and overseas.
Other benefits? In Cyprus there are no inheritance, estate or other taxes on shares held in a Cyprus company. Cyprus imposes no taxes on wealth and it is not anticipated it shall do so in the years to come. That is great.
Cyprus has a number of beneficial double tax treaties that can utilise everything going forward.
What are the legal aspects of having an E Commerce business in Cyprus:
You will also need to secure an electronic commerce license applicable to all online businesses in Cyprus. Compliance with data protection laws is also critical given the nature of online businesses.
Additionally, you must adhere to the Electronic Commerce Law (156(I)/2004) that governs all electronic transactions.
We can do that for you.
What about banking? What are my options?
Reliable banking is a must for any online business.
Opening a business account can be made easy going via us. And given the right documentation.
Several banks offer tailored services for online businesses, including Internet banking, mobile banking, and card merchant services. Cypriot banks widely support payment gateway integration, which is a necessity for online transactions.
I need to accept credit-card payments on my website!
What about E.U Merchant Accounts? Can you do that please?
An EU Merchant Account enables your business to accept and process online payments for goods and services through credit cards and other types of electronic payment.
Here at our Internet Incorporate we offer various Merchant Account solutions via various banks and providers. Our solutions are flexible but at the same time they fulfil all international market standards. They offer safety and speed to your transactions. The solutions we offer cover all major credit cards such as
VISA, MASTERCARD.
Your clients need to be able to place orders easily on your E Commerce website. We offer systems that integrate into your online-shop. This allows your clients to place their payment order directly on your web site. After that, your customer is forwarded to the secure payment site of the card processor. The landing page can be customised to fit to the design of your shop. After the successful payment, the customer is forwarded confirmation details and you receive a payment confirmation via Email. Simple as that!
The fees for the opening of a merchant account vary in every case. It depends on the nature of your business, your products and the volume and size of your transactions. In any case, we do our best to get you the best possible solution at the most favourable rates.
Wait, I do not have a EU passport! How can I stay in Cyprus and run my E Commerce business after setup please?
The Cyprus Digital Nomad Visa!
If you wish to work and reside in Cyprus while servicing international clients through E Commerce platforms then this is your answer. The introduction of the digital nomad visa in Cyprus allows you to reside in Cyprus whilst working for your E commerce company.
Taking into account the personal and corporate tax benefits on your worldwide income this drives your tax bill down.
Seems I am in the right place! What can Internet Incorporate also do for me, please?
Our commitment for a personal and tailored approach according to your needs is our mandate. We undertake the company formation process including all other ancillary services from day one so that you do not have to worry about the details and concentrate on your business.
Apart from our company formation services we can offer you the below services
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Provision of Registered Office Address, Registered Agent and workplace
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Compliance in Legal Matters and Licenses
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Nominee Directors
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Bank Account and Merchant Account opening solutions
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Employee recruitment
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Website and advertising promotion on your business
Our team of professional accountants and support staff always perform extraordinarily and follow International Standards of Accounting and financial management services. They are experts in preparing:
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Computerised accounting records in multiple currencies
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Periodic Management Accounts
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Cash Flow and Consolidated Financial Statements
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Statutory Financial Statements
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Budgets and variance reports against actuals
Ok I am convinced what should do I do? How should I proceed?
Great, send us an email request and we will get back to you for an initial free consultation. Our drive for professional excellence compels us to provide you with a tailored solution for forming your E Commerce business in Cyprus!
Remember one size does not fit all and you should not compromise your future!