Cyprus Offshore IBC Corporation Formation

Cyprus International Business Company (IBC)

Overview of a Cyprus Offshore IBC

Cyprus offers numerous opportunities for international investors looking to form an offshore company in the European Union. Whether for investment, as a holding company or for trading purposes, Cyprus has over fifteen different company formation vehicles in a jurisdiction that has a long history of international finance.

The most popular company offered is the Cyprus IBC and is appropriate for those residing outside of Cyprus and who would like a private company with a non-residential status.

Since Cyprus’ induction into the European Union, its financial vehicles have gone through many changes so as to make it conform to EU legislation. It has managed to remain sufficiently autonomous while reaping many of the benefits gained be becoming an EU member.

Cyprus continues to provide offshore company formation opportunities, but now the industry exists without the negative associations of being an offshore tax haven. Since its entry into the EU, all Cyprus companies now get the added benefit of having access to the European Union’s numerous economic, trade and legislative agreements, all in a legitimate and traditional financial centre.

For more information on the Advantages of Cyprus as an Offshore Financial Center, click here.

Advantages of a Cyprus Business Company

Cyprus is a member of the EU
Cyprus has access to a number of EU conventions and agreements
Taxation is 0% for all non-resident companies
Single member ownership is permissible
Geographical proximity to Europe
Nominee services are available
Companies Act modelled after the UK
Perfect international vehicle for trading or as a Cyprus holding company
New migration of domicile laws
Any nationality and resident of any country (except Cyprus) can form a non-resident LLC
Uncomplicated formation requirements
Located in the temperate Mediterranean
English is widely spoken

Top Uses of an IBC Company

Trading Company
Holding Company
International Investment Company
Tax planning vehicle
Consultancy
Professional Services
Copyright and property holding

Key Corporate Features of a Cyprus IBC

Cyprus LLC	Corporate Details
General
Type of Entity	IBC
Type of Law	Mixed legal system (Common and Civil law)
Governed by	Companies Law CAP 113
Registered Office in Cyprus	Yes
Shelf company availability	Yes
Our time to establish a new company	5-10 Business days
Minimum government fees (excluding taxation)	€400
Corporate Taxation	No (residence-based tax 12.5%)
Access to Double Taxation Treaties	No (residence-based access)*
Share capital or equivalent
Standard currency	Euro €
Permitted currencies	EUR, USD, GBP, CYP
Minimum paid up	No minimum
Usual authorized	€1,000
Bearer shares allowed	No
No-par-value shares allowed	No
Directors
Minimum number	One
Local required	No
Publicly accessible records	Yes
Location of meetings	Anywhere
Corporate directorship allowed	Yes
Shareholders
Minimum number	One
Publicly accessible records	No
Corporate shareholders allowed	Yes
Location of meetings	Anywhere
Company Secretary
Required	Yes
Local or qualified	No
Accounts
Requirements to prepare	Yes
Audit requirements	Yes
Requirements to file accounts	Yes
Publicly accessible accounts	No
Recurring Government Costs
Minimum Annual Tax / License Fee	€350
Annual Return Filing Fee	€60
Other
Requirement to file annual return	Yes
Migration of domicile permitted	Yes

*Cyprus is a signatory of over 40 double taxation treaties; non-residents cannot take advantage of the treaties, as they are limited only to resident companies

Cyprus Business Company Incorporation Package

Includes:

Government Registration Fee (First year)
Registered Office Address (First year)
Registered Agent Services (First year)
Company Secretarial Maintenance
Certificate of Organisation
Articles of Organisation
Minutes of First Organisers Meeting
Ownership Certificates
Register of Members
FREE Phone and/or email consultations

Requirements for Cyprus Company Incorporation & Registration

The requirements to form a Cyprus IBC are as follows:

Valid passport
Personal contact details
Bank reference letter
Proof of residential address

(Details are needed of every beneficial owner/Director of the Company)

Once the Registrar approves the company name, the company files the appropriate forms together with the company’s Memorandum and Articles of Association to the Cyprus Registrar of Companies

Cyprus Tax Rates of an Offshore Company

Cyprus Companies are identified as being resident or non-resident for taxation purposes. Therefore, a company is taxed only if it is tax-resident of Cyprus, and if its management is performed locally in Cyprus.

Upon entering the EU, Cyprus had to conform to a number of financial regulations; however, the IBC most embodies the tax breaks and structure formerly had by other Cyprus companies.

A Cyprus IBC enjoys a number of tax benefits including:

No tax on profits
No tax of dividends
No royalty payments
No capital gains
No withholding tax
No wealth or inheritance tax

Corporate Details of a Cyprus IBC

Anonymity, Confidentiality and Disclosure

The details of the shareholders, directors as well as the company’s financial statements are publically accessible, and though the details of the beneficial owner are disclosed they are not made publically available. Nominee services are available for use, which ensure anonymity for the director or shareholders.

Company Shares

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

Required Capital

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

Financial Statements required

Financial statements are required and are not made publicly available

Directors

One Director is required for a who may be from any nationality, except Cyprus, and may be either an individual or legal entity

Company Secretary

A Cyprus IBC must appoint a Secretary. The Secretary can be an individual or a company. If the company is a single under single ownership then the Director can also be the Secretary.

Company Meetings

Company meetings are required and may take place anywhere in the world

Principal Corporate Legislation

The Cyprus IBC is regulated through the Companies Law, Cap. 113. The law has been in force since 1952 and modelled off of the UK Companies Act 1948, though since then it has been amended when the country was incorporated into the European Union.

Type of Law

Mixed legal system (Civil and Common law)

Shareholders

A Cyprus IBC must have at least one shareholder and not more than 50. Shareholders may be of any nationality and a resident of any country, except Cyprus, and may be 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 is required for a Cyprus IBC

Local Presence

An IBC must have a local registered office. No local secretary, director or any other presence is required.

Audit Requirements

A Cyprus IBC must have their financial accounts audited every year and submitted to the Cyprus Inland Revenue department. Audited financials are not made publicly available.

Annual Reporting

Audited financial accounts need to be prepared and submitted annually, in accordance with the International Financial Reporting Standards (IFRS), to the Cyprus Tax Authorities

Shelf Companies available

Shelf Companies are readily available

Time required to form offshore company

5 – 10 days

Name Restrictions

A Company must not use words such as “Assurance”, “Bank”, “Building Society”, “Royal”, “Trust Company”, “Europe”, “International”, and “Trustee Company” or any other words that are deemed offensive or undesirable by the Register.

Language of Name

Name may be in any language using the Latin alphabet

Names of Company requiring a special LICENSE or permission

A Company must receive permission for some types of services, including but not limited to banking, insurance and financial services.

Access to Double Tax Treaties

Cyprus has signed Double Taxation agreements with over 40 countries, however, DTT’s are not accessible for non-resident companies

Licence Fee

€400

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Cyprus IBC Offshore Company Formations

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