A Cyprus IBC In six Days

Updated 14 June 2021


A Cyprus IBC or an International Business Company, is a common private limited liability company. It has its Directors, Shareholders, a Secretary and a Registered Office. Our Firm can incorporate your Cyprus IBC company in about 6 days. Your presence is not required.

Constituents of a Cyprus IBC for 2021

  1. One Director or more. There is no limit.
  2. Also a Shareholder. You can have up to fifty.
  3. By law you must have at least one Secretary.
  4. It is possible to have 1 Euro capital or more.
  5. A Registered Office Address in Cyprus is required by Law.
  6. The name is approved by the Cyprus Company Registrar.
  7. A Cyprus I.B.C. must have a memorandum and articles of association.
  8. Nominees are permitted in Cyprus. You can use a Nominee Director or a Nominee Shareholder.

 

 

Tax Benefits of a Cyprus IBC

 

The corporate tax rate  for a Cyprus IBC is only 12.5% and 0% tax on dividends! That means that it pays 12.5% tax flat!  It 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 IBC also pays Zero Tax on dividends which it earns from abroad. It can also carry forward any losses indefinitely and much more.

 

More Reading 

 

More details about Cyprus company formation procedures and costs. Also time schedule, formalities and general info.  Please follow this link: Cyprus Company Formation.  An IBC 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.

That is also so for all dividends received by a Cyprus IBC 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 IBC 

 

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.

 

The Capital of Your IBC

 

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.

 

 

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