Cyprus Offshore Company Formation
- Last updated on . Written by Offshore Protection.
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 offshore company formation vehicles in a jurisdiction that has a long history of international finance. A Cypriot Company is governed by the Companies Law, Cap 113 that was inspired by the UK's Company Act.
Some of the most popular companies offered is the Cyprus IBC and the Cyprus LLC 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.
Table of Contents:
- Cyprus Offshore Company Registration
- Advantages Of Forming A Company In Cyprus
- Top Uses
- Key Corporate Features Of A Cyprus IBC
- Incorporation Package
- How To Set Up A Cyprus Company?
- Company Registration Process
- Corporate Bank Account For A Cyprus Company
- Required Documents For Cyprus Company Registration
- Cyprus Company Taxes
- Cyprus Company Formation Corporate Details
- FAQ: Cyprus Offshore Company
Advantages of Forming a Company in Cyprus
- 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 modeled 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
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- Trading Company
- Holding Company
- International Investment Company
- Tax planning vehicle
- Professional Services
- Copyright and property holding
Key Corporate Features
|Type of Entity
|Type of Law
|Mixed legal system (Common and Civil law)
|Companies Law CAP 113
|Registered Office in Cyprus
|Shelf company availability
|Our time to establish a new company
|5-10 Business days
|Minimum government fees (excluding taxation)
|No (residence-based tax 12.5%)
|Access to Double Taxation Treaties
|No (residence-based access)*
|Share capital or equivalent
|EUR, USD, GBP, CYP
|Minimum paid up
|Bearer shares allowed
|No-par-value shares allowed
|Publicly accessible records
|Location of meetings
|Corporate directorship allowed
|Publicly accessible records
|Corporate shareholders allowed
|Location of meetings
|Local or qualified
|Requirements to prepare
|Requirements to file accounts
|Publicly accessible accounts
|Recurring Government Costs
|Minimum Annual Tax
|Annual Return Filing Fee
|Requirement to file annual return
|Migration of domicile permitted
- 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
How to set up?
The requirements to form a Cyprus IBC are as follows:
- Valid passport
- Personal contact details
- Bank reference letter
- Proof of residential address
You will also need
- Register and secure name of the proposed company
- Memorandum and Articles of Association
- Certificate of Incorporation
- Appointment of a company director(s)
- Registry of members and directors
- Share Certificate(s)
We can help to prepare and file all documents that you might need.
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Company Registration Process
In order to register a company, this is what the process will look like:
- Step 1 Offshore Protection works with you to secure a company name with the Company Registry
- Step 2 Offshore Protection works with you to get a Memorandum of Association (MOA)
- Step 3 Offshore Protection helps you to prepare and file incorporation documents
- Step 4 Offshore Protection helps to prepare KYC and AML documents needed to open a corporate bank account
- Step 5 Offshore Protection delivers the certificate of incorporation
Corporate Bank Account
You can open a corporate bank account in most countries around the world with a Cyprus company. We have banking connections in dozens of countries, though the ones we recommend will be dependent on your situation as some banks require in-person visits, higher capital, more due diligence, and references, while others have minimal requirements.
We suggest getting in touch for a consultation as there are many variables that go into finding the best place to open a bank account for your company.
The Documents are submitted to the Registrar of Companies in Cyprus that include:
- Articles of Association
- A statutory declaration by a Lawyer (HE1)
- Forms HE2 and HE3
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.
All Cyprus companies that are owned by a resident are taxable at 12.5%.
If a company is owned by a non resident and does not engage in any business activities in Cyprus nor in the EU then the company is not taxable.
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
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.
An IBC may use registered shares, preference shares, redeemable shares and shares with or without voting rights.
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
One Director is required for a who may be from any nationality, except Cyprus, and may be either an individual or legal entity
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 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)
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.
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
An IBC must have a local registered office. No local secretary, director or any other presence is required.
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.
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 an offshore company
5 – 10 days
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
Government Annual Tax
FAQ: Cyprus Offshore Company
How much does it cost to start a company in Cyprus?
The cost of a Cyprus company depends on a number of factors. Beware of any flat costs that are quoted by salespeople online. There are many extra fees associated with registration together with extra services that make an exact quote difficult though it can range from 1000-3000 EUR.
Why do companies register There?
The main reason why Cyprus has become a great attraction as a location is the business-friendly tax system that offers many advantages to companies. The key benefit of a resident corporation is the uniform 12.5% corporate tax rate which is one of the lowest in Europe. And for non resident companies there are no taxes.
Is It tax-efficient?
If structured properly, a Cypriot company can be used to conduct international business efficiently. Which means that the company can be used as an international trading or holding entity that is nontaxable if all assets and trading are not done within Cyprus or the EU. If activities are conducted in the EU they are taxable at 12.5%.
Cyprus is the most popular destination for foreign investors in Europe because of its favorable tax regime and low cost of doing business. The country has been attracting huge sums of more than $1 billion in investment from multinationals do to having some of the lowest tax rates in the EU.
What are the benefits?
The use of a Cyprus company allows entrepreneurs to legitimately conduct business in Cyprus and internationally subject to a corporate tax rate of 12.5%, which is among the lowest rates in the European Union (EU). However, all business that is conducted outside of the EU is free from taxation
What are the legal requirements?
There are minimal requirements for a Cyprus private company which is why we recommend it. There is a minimum of one shareholder and one director which is required for company registration. A registered local address must also be used where all of its records are to be kept.
What is The tax policy regarding dividends?
Cyprus does not levy a tax on dividends, interests, and royalties paid to non-residents of Cyprus except when it is based within Cyprus.
What are the requirements for filing Income Tax Return?
All Limited companies that are incorporated in Cyprus are required to include financial statements audited by authorized auditors or accountants and a declaration on the Income Tax Return.
Cyprus Offshore Company Registration
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