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Cyprus Offshore Company Formation

The low tax haven of Cyprus is one of the best to be found in Europe. The tax haven has many services which are all aimed at helping investors and corporations protect their assets and reduce on international taxes. These services include the formation of Cyprus Trusts, Cyprus offshore banking, Cyprus Insurance Company and the incorporation of exempt or offshore companies. Cyprus as a low tax haven has been known to provide privacy and confidentiality for its clients as well as a good business environment.

The formation of offshore companies in the tax haven of Cyprus can take place within three (3) weeks. The formation of a Cyprus International Business Company (IBC) is regulated by the laws of the Cyprus Companies Act. This act was modeled after England’s 1948 Companies Act. Offshore companies formed in Cyprus can be one of the following types of companies: Companies Limited by Shares, Companies Limited by Guarantee. The company which incorporated frequently in the tax haven of Cyprus is the Private limited liability company.

For offshore company formation in the European low tax haven of Cyprus the services of a lawyer who will act as a registered agent must be used by the persons forming the offshore company. Offshore company formation in the tax haven of Cyprus is done with the Registrar of Companies. The process involves submitting a complete Memorandum of Association and Articles of Association. Information which is required by the registrar of companies for offshore company formation in the jurisdiction is:

  • The proposed name of the company
  • The registered address for the company in Cyprus
  • The name and address of the registered agent of the company
  • The objectives with which the company is being formed
  • The name , address and nationality of the director of the Cyprus company
  • The name and address of the shareholders
  • The authorized share capital of the company
  • The types of shares being issued by the offshore corporation
  • The rights, powers and restrictions placed on each type of share
  • The bylaws of the company

In order to incorporate a Cyprus International Business Company the name chosen must be sent to the Registrar of Companies for approval. This first leg of the process of offshore company registration can take at least four (4) days. The Registrar of Companies in the tax haven of Cyprus can refuse to incorporate a company if he or she finds the company name to be offensive. A Cyprus International Business Company will not be considered for formation if its name is similar to that of another company incorporated in the jurisdiction. The name chosen for a Cyprus offshore company cannot show any association the government or royal families. The offshore companies of Cyprus must show that they are Limited Liability Company by adding the word Limited or its abbreviation to the company name. when forming offshore companies in the offshore jurisdiction of Cyprus the Registrar of Companies can refuse to incorporate the offshore corporation if one of these words are used as part of the company’s name; commonwealth, Imperial, Global, Cooperative or national.

For a Cyprus offshore company to include one of the following words in its name or to conduct the business which it implies special license must be granted by the relevant authorities in the offshore tax haven: Asset Management, Fund Management, banking, Bank, Insurance, assurance, Investment Management, Broker Reserves, Loans, Savings, Trust, Credit, Trustee, Custody and Dealer among others.

A Cyprus offshore company needs one director (1) and one (1) shareholder for company formation. The director for a Cyprus offshore company can be an individual or a corporation. The director for Cyprus offshore companies can be of any nationality. According to legislation regulating the incorporation of offshore companies in the jurisdiction a Company Secretary must be appointed for all offshore companies incorporated in tax haven Cyprus.

Is must be noted that for offshore company formation in Cyprus the Central Bank of Cyprus must give its consent for the issue of shares for such companies. The Central Bank of Cyprus requires that each shareholder submit to them bank references. For the formation of offshore companies in the low tax haven of Cyprus there is no minimum authorized share capital. Most offshore companies in the tax haven Cyprus are formed with a paid up authorized share capital of about Euro 1000. A Cyprus offshore company has the powers according to companies’ legislation to issue the following types of shares to its shareholders; preference shares, redeemable shares, shares with par value and shares with no voting rights.

Offshore companies formed in the tax haven of Cyprus must keep a registered office in the country. The Cyprus offshore company cannot engage in trade within the country. According to the laws of the country a Cyprus offshore company cannot trade with other companies within the jurisdiction nor do business with the residents of the country. Cyprus offshore companies can maintain contact with the professional community of Cyprus on the grounds of taking care of its premises and for matters which relates to the management of the company. Cyprus offshore company can maintain professional contact with lawyers, accountants, financial advisors etc.

The offshore companies owners in Cyprus can maintain privacy if the company and its owners are not known to be involved in any type of criminal activities. If a Cyprus offshore company has only corporations as it s shareholders then the identity of the rightful owners of the company will not be made known in the public records. Cyprus offshore companies re entitled to pay taxes to the relevant authorities in the offshore tax haven. Taxes for Cyprus offshore companies are set at the very low rate of 10% of the offshore corporation’s profits realized the end of each financial year. All offshore companies incorporated in the jurisdiction must submit to the relevant tax authorities the financial statements of the offshore company at the end of each financial year.