A Cyprus I.B.C. In Four Days
Benefits of a Cyprus I.B.C.
A Cyprus I.B.C. is a common private limited liability company. It has its Directors, Shareholders, a Secretary and a Registered Office. And of course a Capital like any other common company. It enjoys many tax privileges and tax benefits. It is a power tool for your offshore tax planning. A Cyprus I.B.C. has also may legal and administrative advantages. It is an EU company. You get all the certificates in English and Appostilled. You can make any change to a Cyprus I.B.C. very quickly. It has a lot of serious tax benefits!
Constituents of a Cyprus I.B.C.
- One Director or more. There is no limit.
- Also a Shareholder. You can have up to fifty.
- By law you must have at least one Secretary.
- It is possible to have 1 Euro capital or more.
- A Registered Office Address in Cyprus is required by Law.
- The name is approved by the Cyprus Company Registrar.
- A Cyprus I.B.C. must have a memorandum and articles of association.
- Nominees are permitted in Cyprus. You can use a Nominee Director or a Nominee Shareholder.
Tax Benefits of a Cyprus I.B.C.
The corporate tax rate for a Cyprus I.B.C. is only 12.5% and 0% tax on dividends! That means that it pays 12.5% tax flat! In many countries corporate tax and dividend tax together add up to as high as 65%.
A Cyprus I.B.C. pays Zero Tax on the profits from trading in Securities and of selling its own Shares. It also pays Zero Tax on profits from trading through permanent establishments abroad or from buying and selling real estate abroad. A Cyprus I.B.C. also pays Zero Tax on dividends which it earns from abroad. It can also carry forward any losses indefinitely and much more.
More Reading for Cyprus I.B.C.
An I.B.C. Cyprus is a complete and separate legal entity from the people that make it up.
It is born when it is in fact incorporated and registered at the Companies House.
This type of company does not need any special business license to trade Nor to offer services inland and abroad. It has to register with the Income Tax Office to get T.I.C. number. It must also register with the VAT Authority to get a VAT Number.
Characteristics of a Cyprus I.B.C.
It can own immovable property. And it is exempt from capital gains tax if it owns and sells property at a profit abroad. Its profits from any intellectual property rights are also exempt from corporate tax by 75%. That is it pays only 2.5% corporate tax! It is also taxed at 0% corporate tax on the dividends paid out to the shareholders.
That is also so for all dividends received by a Cyprus I.B.C. from any companies in which it is a shareholder! Make it the key tool to your international tax planning. It has many more advantages. We will be glad to give you more information if you are interested. See also I.B.C. Cyprus, for more information on the subject.
The Company Law For the Cyprus I.B.C.
The legislation under which a Cyprus I.B.C. is incorporated , is the Company Law, Cap. 113. Under these provisions any foreign physical person or legal entity can be the owner of it. A very tight and concise set of regulations are provided by this Law for its operation and legal compliance.
Cyprus legislation contains the right of taxation on preferential terms for the companies belonging to non residents. This is so, by virtue of the many double tax treaties with over 42 third countries.
This makes it the most effective vehicle for you to plan your tax. The minimum possible corporate taxes are paid in a legal way. Thus making this company a very powerful tool for your offshore tax planning.
This company can either be tax resident if its management and control is in the Cyprus. It will be non tax resident if its management and control is outside Cyprus.
There are other types of Cyprus I.B.C. companies, such as a company limited by guarantee, a partnership, a public company. The most common form however is the limited liability company. The Shareholders have no responsibility for the debts of the company.
Registration Procedure For Cyprus I.B.C.
The procedure for the registration of a Cyprus I.B.C. is fairly simple. If you get in touch with us we will simplify it to the point where it becomes pleasant incorporating it. First you must choose a name for it. Then you must decide who the Directors will be of your company. If you need anonymity you can ask us to appoint nominee directors for you.
Such people are people from our office who are highly trained and trusted. Also you must decide who the Shareholders of the company can be i.e. the people who will own the shares of the company.
Nominee Shareholder for Your Cyprus I.B.C.
Again if you don`t want to be the Shareholder overt in your company, our firm can make available to you nominee shareholders. They will hold the shares on your behalf. These people will charge you a yearly reward for their services which is usually very fair. It is always agreed with the client beforehand.
The Capital of Your I.B.C.
Lastly you must decide what the capital will be depending on the actual needs of your operations. Usually 1000 shares of 1 Euro each are issued. There is no maximum limit to the shares such a company can issue. There is a tax of 0.6% on the capital issued by on the day it is incorporated or if it is later increased. If you need to see our prices and fees for our company formation and other legal and corporate services please follow this link.
The Double Tax Treaties
Cyprus has signed double tax treaties, with many countries all over the World, which makes it a jurisdiction very attractive for international tax planning. If you want to check whether you country has a Double Tax Treaty with Cyprus please follow this link: Double Tax Treaty List.