Blockchain & DLT Legal Services

Discover the solutions Blockchain & Distributed Ledger Wallet (DLT) provides for your business and the opportunities provided by Cyprus Law in this area.

Since its inception, Blockchain & Distributed Ledger Wallet technology is being used in a multitude of applications including smart contracts, crowdfunding, file storage, governance, protection of intellectual property, record keeping, etc. The technology is revolutionizing the way people around the world transact with each other by helping bridge the trust barrier. Undoubtedly, Blockchain is the future and its list of applications could potentially be endless.

With all this innovation comes a new set of legal implications. The regulatory and legal of Cyprus is considered as Crypto friendly and favourable for Crypto related projects.  No regulation or statute in Cyprus forbids cryptocurrencies, on the contrary blockchain related business, such as payment and exchange services are supported by the existing legal Cyprus and European framework.   Simon Zenios & Co LLC is one of the few firms with knowledge in the Blockchain and Crypto space and we are thus able to advise and assist you if you are interested to set up or move, any aspect of your project in Cyprus.

We will help you navigate and efficiently tackle the procedures of setting up your Blockchain business in Cyprus and assist and advise you on corporate structures, commercial law matters, as well as, any other related issues regarding companies Cyprus, including:

Cyprus Company Formation

A Cyprus Limited Liability Company may be used for the below purposes:

  • As the vehicle for your ICO/IEO project, as coin offerings involving tokens classified as utility tokens in Cyprus are unregulated.
  • A Company with the appropriate license may be used for Crypto Exchange Platform or Forex exchange platform projects, providing the passport for the European Union market.
  • A Company may be used to launch an STO Security Token Offering fully regulated by Cyprus Security Exchange Commission (CySEC) with no VAT on the Token Sale

Why Cyprus?

Cyprus is considered as one of the most attractive jurisdictions in Europe to form a limited liability company due to its advantageous tax system. As a full member of the EU, Cyprus offers you one of the lowest tax regimes in Europe of just 12.5%.

Cyprus is ideal for holding assets in Europe because it offers you the same benefits that a traditional offshore jurisdiction should offer. Additional benefits arise from the fact that there is a full exemption from tax on dividend income, no withholding tax for dividends paid to non-residents and no capital gains tax.

Cyprus is an established international financial Centre with a wide network of Double Tax Treaties.

Furthermore, Cyprus’ tax system is in full compliance with EU requirements and also with the Organization for Economic Co-operation and Development (OECD) requirements against harmful tax practices. Thus, is an ideal place to lower your tax burden with no risk.

Cyprus tax system main features:

  • Corporation Tax Rate is 12,5%, amongst the lowest in the EU.
  • Foreign source income is tax exempt.
  • Profits on transactions in shares are tax exempt.
  • No withholding taxes on outbound dividends, interests and royalties.
  • No thin capitalization rules.
  • No exchange controls.
  • No capital gains tax (except on real estate located in Cyprus).
  • A wide network of favourable tax treaties.

Minimum Requirements:

  • 1 Director (we can provide nominee to act on behalf)
  • 1 Shareholder (we can provide nominee to act on behalf)
  • 1 Company Secretary (we can provide nominee to act on behalf)

Additional services:

  • Nominee Director (corporate or individual director)
  • Nominee Shareholder (corporate or individual shareholder)
  • Bank Account Opening
  • Accounting (based on volume and complexity of operations)
  • Audit

Cyprus Subsidiary Formation

A Cyprus Subsidiary shall be useful for your current corporate structure, no matter the area of Blockchain your activities are involved with. Essentially, the registration of a subsidiary in Cyprus is the same as with any other company and the requirements for company formation apply in this case as well. The favourable tax regime described above also applies for subsidiaries, plus the tax regime applying to the distribution of profits to non-residents is very advantageous. Given that, Blockchain companies facing problems with bank account opening may establish a Cypriot subsidiary for the operation of their business.

Redomicile in Cyprus

Redomiciliation is the process by which a company moves their seat to a jurisdiction other than their jurisdiction of incorporation, to avoid liquidating the assets they currently hold and further fees. Cyprus Company Law allows companies incorporated in other jurisdictions to redomicile in Cyprus, that is important for companies that face unexpected regulation or banning of their Blockchain projects in the jurisdiction they are incorporated. However, we note that it is required that redomiciliation is allowed in the country of origin and expressly provided in the Memorandum and Articles of Association.

Bank Accounts and Payment Solutions

We understand that bank account opening may be the most difficult problem Blockchain Projects are faced with. We provide advice and assistance on opening a bank account, e-bank account and provide payment solutions such as payment gateways and EMIs for your Blockchain Project, either that is a newly formed company or your existing company. Our team of Blockchain lawyers will be able to provide an opinion letter for the bank account opening.

Our services include the below:

Legal advice, issuing legal opinions and providing consultations on all legal aspects of implementing Blockchain technology in business operations, Blockchain and Distributed Ledger Wallet legal services, and review of token structures. We can also help you select the appropriate jurisdictions depending on your business objectives, assist in acquiring all licenses and permits, as well as review compliance with all legal requirements.

Our team of Blockchain and DLT lawyers will be able to advise and assist you throughout the process, which will begin with an introductory call with our team of experts, the point of which is for our team to understand your requirements and objectives. Following this, we can then provide you with a quote for our Blockchain legal services. If the quote is accepted and you decide to engage our legal services, the next step will be for us to collaborate with your team and come up with a detailed legal services plan.

For any queries regarding any aspect Blockchain companies in general, or any other legal matter under the sun, we are always available.

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