Offshore Company Guide in Cyprus

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.

Why Cyprus?

Location is one of the prime reason 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 strongest 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.

For more information about how to open or register an offshore company in Cyprus, click here.

Why Starting an Offshore Company in Cyprus?

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
  • Trusts

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

Anonymity, Confidentiality and Disclosure

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.

Company Shares

An Offshore Company may use registered shares, preference shares, redeemable shares and shares with or without voting rights.

Required Capital

There is no minimum capital with a usually authorized capital of €1,000.

Financial Statements

Financial statements are required and not made publicly available.

Directors

Minimum of one Director is required from any nationality, except Cyprus, and may be either an individual or legal entity.

Company Secretary

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.

Shareholders

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.

Exchange Controls

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

Local Presence

An offshore company must and should have a local registered office. No regional secretary, Director or any other presence is required.

Audit Requirements

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.

Annual Reporting

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.

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
  • Modernized transport system
  • Single-member ownership availability
  • Nominee Services are available for use
  • No taxation for all non-resident companies
  • Wide telecommunications networks
  • Has complied with all know your customer, money laundering and international financial regulatory policies.

Final Thoughts

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.

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