Opening an offshore company in Cyprus lead to new opportunities for growth and profit. However, it’s also filled with geopolitical and macroeconomic challenges that any entrepreneur should be wary of before doing anything. In this article, you’ll get to know about offshore company formation in Cyprus and why it is an excellent place to start one while also offering concrete steps on how to open an offshore company in Cyprus.
Location is one of the prime reasons why Cyprus is a strategically sound choice for offshore company formation. The country situated between three continents – Asia, Africa, and Europe which fosters a healthy tourism sector. From a business perspective, it means higher foot traffic and potential sales. The economy's most vital sectors include tourism, financial services, and shipping.
Cyprus provided several tax breaks for foreign investments pouring into the country, which included the signing of treaties to safeguard the significance of foreign investors. To evade investors getting taxed twice, the government signed a double tax treaty with over forty countries. Four years later joining the European Union, Cyprus joins the Economic and Monetary Union, further placed protection on foreign investment by eliminating the exchange rate risk.
Registering an offshore company in Cyprus has become one of the favorable choices for investors as it provides a business climate.
Why Starting an Offshore Company in Cyprus is Beneficial?
I would suggest visiting the country at least once before you set up a company. It’s about establishing a business that Cyprus is indeed the place you want to start an offshore company. The types of offshore company formation in Cyprus include:
- International Business Company or IBCs
- Offshore LLC
- Offshore Corporation
- Private Foundation
The types of offshore company in Cyprus can further divide into the sector or industry the company specializes in, such as an offshore financial services company or an offshore captive insurance company.
Corporate Details of a Cyprus Offshore Company
When it comes to company formation in Cyprus, absolute essentials are to be considered accordingly.
The details of the directors, shareholders, as well as the company’s financial statements, are publicly accessible. Though the details of the beneficial owner disclosed they are not made publicly available. Nominee services are available for use, which provide anonymity for the Director or Shareholders.
An Offshore Company may use registered shares, preference shares, redeemable shares and shares with or without voting rights.
There is no minimum capital with a usually authorized capital of €1,000.
Financial statements are required and not made publicly available.
Minimum of one Director is required from any nationality, except Cyprus, and may be either an individual or legal entity.
A Cyprus offshore company must appoint a Secretary. The Secretary can be a company or an individual. If the company is under single ownership, then the Director can also be the Secretary.
A Cyprus offshore company must have at least one shareholder and not more than fifty. Shareholders may be any nationality and a resident of any country, except Cyprus, and maybe an individual or a corporate body.
There are no exchange controls in Cyprus
Language of Legislation and Corporate Documents
Greek, with certified English translation
Registered Office Required
A registered office required for a Cyprus offshore company
An offshore company must and should have a local registered office. No regional secretary, Director or any other presence is required.
A Cyprus offshore company have their financial accounts audited every year and submitted to the Cyprus Inland Revenue Department (IRD). Audited financials are not made publicly available.
Financial accounts need to prepare and submit annually, under the IFRS (International Financial Reporting Standards), to the Cyprus Tax Authorities.
Names of Company Requires Permission
The name can be in any language using the Latin alphabet. An offshore company must receive permission for some types of services, including but not limited to banking, insurance and financial services.
Once you are clear about the essentials mentioned above, you can proceed ahead for the incorporation process.
How to Start an Offshore Company in Cyprus?
To proceed with the offshore company setup process in Cyprus, one has to go through the following steps.
- Select a business consultant
- Submit the Essential Documents
- Documents undergo the verification process
- Obtain the respective approvals from the relevant authorities
- Open an offshore bank account
- Conduct offshore business activities
To get better clarity, have a look at How to Register an Offshore Company in Cyprus.
Benefits of Cyprus Offshore Company Formation
- Resident based Companies have access to an extensive network of Double Taxation Treaties
- Low 12.5% taxation for all resident-based companies (Lowest in the EU)
- Secure asset protection company legislation
- Strategic geographical location
- Cypriot Companies Act based on the UK Company Law
- Uncomplicated formation requirements
- Business owners have the flexibility to deal with offshore banking
- Modernized transport system
- Single-member ownership availability
- Nominee Services are available for use
- Flexibility to deal with Forex Trading
- No taxation for all non-resident companies
- Wide telecommunications networks
- Has complied with all know your customer, money laundering, and international financial regulatory policies.
Cyprus is an excellent place to set up an offshore company. Since its inception, Business Setup Worldwide has been guiding numerous clients to establish their business roots in different parts of the world. We stand as one of the best business consultants who has been aiming to provide hassle-free business incorporation proceedings. With a team of experts, we provide tailored solutions suiting to our clients suiting their business needs accordingly. To start your offshore company in Cyprus, contact us today-we’d be glad to assist.