Cyprus Offshore Company, Formation And Formalities.
Requirements and Formalities
Cyprus Offshore Company: The next step for a successful businessman, the right way to lower taxes and a certain way to success. It can bethe key to the success of your offshore operations. It can offer you such tools that you have not experienced in any other jurisdiction. Such a company can also offer low corporate tax rate, speed, friendly tax environment, no taxes on dividends, over 43 Cyprus double tax treaties.
English law and English incorporation certificates. You can have your Offshore Cyprus Company completed in about 5 working days. It offers you low fees and many other incentives such as 0% tax on dividends paid to the Shareholders and 0% tax on dividends paid to it for shares it owns in other companies. A Cyprus Offshore Company is the goose with the golden eggs! If you realize its tremendous advantages i.e. that you only pay 12.5% corporate tax, and zero tax on dividends, that should be enough to put your instinct on alert. You can access the markets of 27 EU countries and around 300 mil. consumers but also the rest or the world, as it is acceptable everywhere without reservations.
For more information about the Company Formation, for the formalities required and the formation fees, follow this link: Cyprus Company Formation. World Trade Globalization was a milestone for offshore trading. International tax planning can be achieved through the offshore company and it is a big motive for large multinational companies and medium and smaller concerns alike. Entrepreneurs are always motivated by lower taxes so that they can show better results to their shareholders, secure big benefits for themselves and of course stash up more profits for dividends and expansion.
An Offshore Company in Cyprus is exactly what you are looking for. A power tool to success, or just a power tool… Banking has also been radicalized in the last decade by the globalization venue and banking secrecy became more urgent as the revenues kept piling up. Big developed countries and many EU countries have increased their corporate taxes to unprecedented levels including the tax on dividends. In some countries a company ends up paying corporate and other taxes to the tune of 95% ! Tax bills kept piling up. The solution was going offshore. A Cyprus Offshore Company Formation is a fast and fuss free process. Our company has been offering corporate services since 1979!
Formalities For the Formation of a Cyprus Offshore Company
Before you set up an offshore company you have to get advice from some expert on the matter such as a lawyer. there are a few things he should advise on so that no mistakes are made and no costs are thrown away. Some of the matters that would need direct attention are the name of the company, the capital, the directors, shareholders, the activities of the company and whether a license might be necessary for any one of them, the vat number, the use or not of nominee directors or shareholder etc. these are all important matters that must be taken care of before the offshore company is incorporated. See below a quick list of the formalities for the formation of your own Cyprus offshore company:
1. The name of the company must be submitted to the Registrar for approval. It must not contain any illegal or indecent words and it must not be the same or very similar to that of an offshore company already registered.
2. The capital of the company. You must decide the currency for your capital and the size of it. There is no maximum limit and the minimum is one euro. It can be divided in as many special categories as you`d care to invent. Such as voting and non-voting shares or dividend bearing or not etc. The capital can be nominal or issued. So you may set up your offshore company with a hundred thousand nominal capital and only ten thousand issued capital. That means that only ten thousand shares have been issued to actual shareholders. The capital does not have to be paid in the account of the company in cash but it will be owed to the company by the shareholders.
3. The directors of the company have to be nominated and declared to the Registrar on the formation of the company. They can be person or companies. If they are physical persons they must be of age, sane and not bankrupt. They can be locals or foreign persons. An offshore company can have as many directors it needs. There is no legal maximum limit. The minimum is one. If a single director resigns and one else is appointed the Registrar will strike the company off the records. It can be re-instated later. The directors carry out all the business and activities of the company. The shareholders by a majority can remove the directors and appoint new ones.
4. The shareholders are the owners of the shares of the offshore company and therefore the owners of the company. They can be persons or companies or other legal entities. if they are persons they must not be bankrupt and they must be of age and sane. They can be Cypriots or foreigners. The are nominated and declared to the Registrar at the incorporation of the company. They have all the powers of the company. They take decisions at ordinary or extraordinary meetings. The maximum number of shareholders is fifty and the minimum one. They can sell their shares to other investors in private transactions. They don`t have the right to call on the public to buy shares.
5. The Secretary of the company is the official who keeps the records and sign various documents for the Registrar , at the bank, call the meetings of the shareholders etc. He does not have any powers. The minimum number is one and there is no legal maximum number provided.
6. The company must have a permanent office at which the letters and notifications of the Registrar, the Inland Revenue Department, the Vat Authority and of any private claims can be notified or served. This is called the registered office of the company and it must be declared to the Registrar at the time of the formation of the offshore company. This office is not the business or trading office of the company and can be the address of the law office that set up the company.
7. When incorporated the company has a legal obligation to register with the Inland Revenue Department in one month. A TIC number will be issued which must be shown on all the documents of the company.
8. The lawyer who will incorporate your company will ask you for a copy of your passport, a fresh utility bill of not more than three months old for water, electricity, telephone, or a bank statement showing your residential address and in some case a bank reference letter will be required. Also a questionnaire will be filled in by you for know your client purposes with information of your contacts, profession, education, source of wealth, activities etc.
9. The company can be formed in your absence. Your presence is not necessary even if you are going to be the shareholder yourself and you have to sign the Memorandum. The relevant pages are sent to you by email. You download and sign them and return by courier. The necessary bank account for the company can also be opened in your absence. Once the procedure is over the offshore company is complete, a company kit is sent to you by courier with all the incorporation documents of the company. In fact you will never have to come to the country if you don`t need to, even if you keep operating the company for many years.
10. The activities of the company must be declared to the Registrar in the Memorandum. The activities must be legal and must not include activities requiring a license before the company can be incorporated like a lawyer company. Also some activities like banking, insurance, financial investments etc must have a license to operate in or out of the country.
Why Choose A Cyprus Offshore Company
The end is nigh as some might say. We believe that soon the attraction of the no tax havens will be reduced considerably as the big economic powers will not allow any foul play with their nationals. Many tax haven jurisdictions have already join a tax information exchange program with the UK, Canada, Australia, the US and the list is growing. Confidentiality which was the big advantage of these jurisdictions is being rapidly eroded. F.A.T.C.A also is another strong blow to these jurisdictions as they have agreed to divulge banking details of their clients to the US, Germany, France , Italy, the UK and much more… Not so however for the Cyprus Offshore Company. It keeps its tax advantages and benefits and its full confidentiality.
The banking secrecy is being eroded too very quickly for the no tax havens. Money coming from offshore no tax jurisdictions is not accepted in many banks in the EU, Russia and other countries. Merchant accounts are not opened by many providers for offshore companies registered in no tax havens…So the Cyprus Offshore Company has proven to withstand the test of time. It remains a formidable tool in the hands of an adept businessman which will give him the leeway necessary to spread his sails and guide his offshore ship in the safety of the low tax harbor. Follow this link to see the numerous advantages of a Cyprus Offshore Company if it is used as a holding company: Cyprus Holding Company. Formations have been on the increase in the last years and this is indicative of their usefulness in the field of tax optimization worldwide.
It pays only 12.5% corporate tax, one of the lowest in the EU and world wide speaking of low tax countries. The tax on dividends is 0% and also it is 0% on revenues from trading in securities and only 2.5% on revenues from intellectual properties which is a huge sector of the world economy like music rights, film industry, books, documentaries, football etc. An Offshore Cyprus Company can be a key to your going offshore and a big tool in your international tax planning. Through a Cyprus Offshore Company you don’t pay taxes at all on your dividends. Through your investment company you don’t pay taxes on your revenues from trading in shares, or forex or other securities and through your trading company you only pay 12.5% on your net profits! See if you can match this through the offshore company of any other low tax jurisdiction.
We Can Open An Offshore Company In Many Jurisdictions
All over the world many countries are 0% tax Havens of course. They offer company incorporation facilities with zero corporate tax and virtually no other taxes whatsoever. This is a motive mainly for small and medium concerns, as the big economic powers are frowning on these tax havens lately. The list is big like The Seychelles, The BVI, Belize, Panama, Hong Kong, Singapore, Delaware, Caicos Islands, St Vincent the Grenadine Islands to mention but a few.
Our Law Firm will assist you to set up your offshore company in any jurisdiction although we don`t recommend some of them because of delays, complexity, high costs, language problems for your documents etc. So always get advice from a professional before you leap. Look before you leap… as the saying goes. If you have any queries about how to incorporate your Offshore Cyprus Company or an offshore company in any other jurisdiction our experts will answer all your questions with pleasure.