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 LLC||Corporate Details|
|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|
|Bearer shares allowed||No|
|No-par-value shares allowed||No|
|Publicly accessible records||Yes|
|Location of meetings||Anywhere|
|Corporate directorship allowed||Yes|
|Publicly accessible records||No|
|Corporate shareholders allowed||Yes|
|Location of meetings||Anywhere|
|Local or qualified||No|
|Requirements to prepare||Yes|
|Requirements to file accounts||Yes|
|Publicly accessible accounts||No|
|Recurring Government Costs|
|Minimum Annual Tax||€350|
|Annual Return Filing Fee||€60|
|Requirement to file annual return||Yes|
|Migration of domicile permitted||Yes|
The requirements to form a Cyprus IBC are as follows:
(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 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:
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 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
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.
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
Greek, with certified English translation
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 are readily available
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.
Name may be in any language using the Latin alphabet
A Company must receive permission for some types of services, including but not limited to banking, insurance and financial services.
Cyprus has signed Double Taxation agreements with over 40 countries, however, DTT’s are not accessible for non-resident companies
Cyprus Offshore Company Registration
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