Open offshore company in Cyprus is quite a simple task. No wonder it is so popular among entrepreneurs. Simplicity is a plus with a bunch of beneficial side effects that beckon everyone who wants to start a business. Registering a business or an offshore company is a very attractive thing here. What is it and why are all businessmen so eager to do it?
Offshore companies – companies that are located outside the country in which the owner lives or outside the country where the main activity of the business is located, officially registered offices and representative offices of the parent company.
As for Cyprus and registering an offshore company in Cyprus, it is very simple. Of course, you will have to deal with the requirements, but they are few and easy to fulfill. Collecting the necessary package of documents may not be the easiest task, but a lawyer or a company that helps to open offshore companies will cope with it easily.
The secret of Cyprus’ popularity for offshore registration lies in the fact that it has the lowest corporate tax rate in Europe – 12%. At the same time, the island state is not a classic offshore and is not blacklisted in this regard. The jurisdiction is a member of the EU, which automatically makes companies registered here European. To date, more than six dozen countries have signed an agreement with Cyprus on the abolition of double taxation. Companies that are registered in Cyprus, but operate outside of it, are not required to pay tax on dividends, on the income of a foreign branch, tax on the sale of shares and securities. However, it should be borne in mind that since 2016, amendments to the tax law have been in force in Cyprus, according to which not all dividends are exempt from tax. Reorganization transactions may also be subject to taxes if the process did not pursue economic goals. For strict adherence to legislative norms, many entrepreneurs use the services of financial managers.
Some other advantages of the solution:
• the cost of organizing and maintaining a business is low;
• there is no currency control;
• it is possible to obtain a VAT number and trade on the EU market;
• it is possible to open a corporate account in any European bank;
• international reporting and audit.
In addition, here you can get a certificate of a local tax resident. In Cyprus, optimal conditions have been created for organizing a holding, since the activities of a controlled foreign company are not regulated. With the help of Cypriot companies, it is convenient to work with loans. There is no inheritance tax for non-residents of Cyprus. If the owner of the company wants to remain incognito, then he can use the services of a nominee service.
The offshore registration procedure in Cyprus consists of several steps:
1. A unique name for the future enterprise is selected.
2. The company is entered in the register of Cypriot enterprises, the submitted constituent documents are legalized.
3. A bank account is opened.
4. The owner receives a package of documents.
If the activity of the future company is related to the provision of financial or insurance services, then it is necessary to submit an already issued license with the main papers. Typically, entrepreneurs register an offshore company in Cyprus in order to optimize taxes, scale up their business, and save capital. Cypriot companies get the opportunity to do business in the international market with foreign partners.
