Cyprus Offshore Company
Cyprus is an island nation located in the Mediterranean Sea. English is commonly used in commerce, industry and government. The official languages are English, Greek and Turkish. There are approximately 900,000 people living in Cyprus.
In 2004 Cyprus joined the European Union (EU). When it joined the EU the business model did undergo some changes. Despite those changes, though the country remains a rather attractive location for businesses and business entities. The political structure of Cyprus is considered excellent. There is a civil law structure. Some consider this combination of factors to lend an additional credibility to the companies that are created. Others note that many companies that are created as Cyprus companies are credible in intent and the accession to the European Union has added no benefit and instead has complicated and reduced the benefit of being an offshore Cyprus company.
There is a specific requirement for business to operate tax-free under Cyprus governance. That requirement is that the business must be non-resident. This tax-free status does not negate the fact that the business is incorporated within the European Union as a result of the membership of Cyprus in the European Union. The process of incorporating can be relatively quick provided that all of the details in the process progress smoothly. It can be as short as four to eight days. It does require specific structuring to take advantage of the tax-free status though. Businesses that are considered resident businesses are taxed at a rate of 10%.
Income of various sorts is also free of withholding when incorporated under the Cyprus governance. Records and documentation are required and financial accounts must be audited and reported to the government, though the records are not maintained as public. Cyprus companies are restricted from making pre-incorporation agreements. An annual meeting is required, though it can be held anywhere and need not be held in person. Details of Directors and Shareholders must also be reported to the Registrar of companies. In Cyprus this information is public information. Using some methods it may be possible to keep names semi-private including specifically the name of the Beneficial Owner. All names will be disclosed in the instance of a criminal investigation though.
When incorporating it is important to consider that some names may be rejected. This is typically based on whether the name implies that the business is a trusted entity such as a bank. As with a number of other offshore “dream locations” it is only required that one share be issued allowing a single individual to own the entire entity. No bearer shares are permitted though. In business the Euro is accepted, but the Cyprus pound, the US dollar and the British Pound are accepted as well.
Some of the methods required to maximize the benefit of being incorporated in Cyprus may involve technical knowledge of the governance regarding the process. An office must be registered in Cyprus and the individual or business that assists you with that may be able to assist you with any legal questions, but it is important to ensure that your receive correct and quality guidance.
