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 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
Cyprus IBC Offshore Company Formations
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