Cyprus International Business Entity

The island, due to its strategic position has over the years been established as a centre of trade as it is a crossroad between Europe, Africa and Asia. Throughout the years, Cyprus has developed as a world renowned International Business Centre. The country's political and economical stability, preferential taxation system, solid legal infra-structure, efficient administration and the competitive incorporation packages available, made Cyprus one of the best options for one's corporate endeavours.

Cyprus, one of the smallest European low tax jurisdictions, is a suitable place for locating an intermediary company due to the island’s combination of tax treaties and low-tax regime. Dividends can flow through the Cyprus company totally tax free and the company can be used to take advantage of the extensive network of double tax treaties.

Stylianos N. Christoforou & Associates Law Firm provides for legal advice and assistance to clients wishing to register any Cyprus International Business Entity in order to benefit from the tax incentive regime of Cyprus as well as its network of Double Tax Treaties.

In order to establish a Cyprus company acting as an International Business Activities Company the following procedures and information are required:

(a) Approval by the Registrar of Companies of the proposed name of the company.

(b) A brief description of the main purposes of the company.

(c) The amount of the nominal capital of the company, and how it is going to be divided. This is usually €1710,00 divided into 1,000 shares of €1.71 each. We note that it is also possible to denominate the capital in a currency other than Cyprus Pounds.

(d) The names, passport details, dates of birth, addresses, occupations and nationalities of the proposed beneficial shareholders as well as the proportion in which they will hold the shares of the company.

(e) The names, passport details, date of birth, addresses, occupations and nationalities of the proposed directors and secretary of the company.

(f) The proposed address of the registered office of the company in Cyprus.

A Cypriot Tax Resident company is charged only 10% corporate tax. However, for a company to be considered as Tax Resident in Cyprus needs to show to the Tax Authorities that the management and control of the company is effected in Cyprus. In order to achieve that a company must fulfil certain criteria:

· The majority of the directors must be of Cypriot citizenship and/ or

· The general, annual and board meetings as well as the decisions and the supporting minutes must take place in Cyprus

Non-resident Cyprus Companies are taxed at 0% annually, but do not have the benefit of Double Tax Treaties.

Foreigners who do not wish to appear as registered shareholders may appoint nominees to act for them as registered shareholders, whilst the actual ownership shall always rest with the non-resident beneficial owners of the shares. It is the practice to appoint the firm which undertakes the formation of the Company to settle the nominee shareholding through its members or through companies fully controlled by it. Our law office can provide the nominee shareholders, directors, secretary and registered office, if so requested.

The main characteristics of a Cypriot private company limited by shares, whether it has a local or an international activity or both may be summarized as follows:

The tax levied on the International Business Company's net profit is of 10%, Company accounts must be kept (in Euro or US Dollar) and audited annually.

There are 3 main non-resident bank accounts in Cyprus or abroad, in Euro or $US Dollar and our law office can assist you in opening one:

• The External account, operated in local currency, convertible anytime with no interest paid.
• The Foreign currency account, operated in chosen currency with commission.
• The Special account, operated in local currency, to ease local transactions for non-residents.

Our annual retainer fee covers all the services we provide to the company during the year, except for items of a truly extraordinary nature, which we would only charge separately if the clients specifically agree to this. Actual disbursements are charged extra.

Registration and Management of Companies in Other Jurisdictions

Our law office will also provide assistance for the registration and maintenance of any international business entity in any jurisdiction. Our list of corporate agents covers the jurisdictions of Belize, British Virgin Islands, Isle of Man and Mauritius.

These jurisdictions have a double tax treaty with Cyprus and as a result once the management and control criteria is fulfilled (same principle as with the formation of a Cyprus International Business Entity), in any of those jurisdictions the corporate tax will be nil.

The procedure for the incorporation can be achieved within 24 hours, however, it will take approximately five working days for documents  to arrive from the jurisdiction. We do keep ready-made companies in stock, available for immediate purchase.

Banking

 In addition to the incorporation of international business entities and investment services our law office arranges introductions to offshore and onshore banks as well as the opening of offshore and onshore banking accounts for personal or corporate use.