How to Open Offshore Company in Cyprus as Entrepreneur?

Entrepreneurs usually choose to open an offshore company to expand their business. How and where to open it? One of the most popular places ...

Entrepreneurs usually choose to open an offshore company to expand their business. How and where to open it? One of the most popular places is Cyprus. What are offshore companies and what functions do they perform?

Offshore company is any foreign company. But if we take a concept that is more established, then an offshore company is a foreign company that, due to its location, is used to access various benefits, primarily in matters of taxation, confidentiality, and reporting.

When talking about companies in Cyprus, they primarily mean stability, one of the lowest taxes in Europe and ample opportunities for optimizing taxation. A Cypriot company is not a classic offshore company. In general, Cypriot companies are subject to a 12.5% income tax, the lowest income tax in Europe. If a Cypriot company sells goods and services to EU residents, there is also a need to pay VAT. A company in Cyprus provides wide opportunities for tax planning, depending on the specifics of the business. A company in Cyprus is exempt from paying VAT if the recipients of goods and services provided by a Cypriot company are not EU residents.

How to Open Offshore Company in Cyprus as Entrepreneur?

Speed, simplicity and stability are sufficient for many to open an offshore company in Cyprus. The procedure of an offshore company formation in Cyprus takes only 1-2 weeks and includes:

• Verification and confirmation of the name of the Cypriot company in the register.

• Preparation and completion of all necessary documents.

• Payment of necessary registration fees and charges.

• Registration of a Cypriot company in the Registrar of Companies.

• Notarization.

• Delivery of documents of the Cypriot company to the client by international courier mail.

The main legislative act that regulates the registration and activities of an offshore company is Cyprus Companies Law, CAP 113. There are also other regulatory documents governing the opening of certain types of Cypriot organizations.

With the accession to the EU, Cyprus has no longer to be among the world's tax havens, but has not lost its key advantages for international companies:

• Possibility of cooperation with any European contractors. If you open a company in European jurisdiction, you can transport goods duty-free throughout the EU.

• The most loyal EU VAT rates (19%) and corporate tax (12.5%) apply on the island.

• You can get a residence permit in Cyprus for investments from 300,000 euros, and immediately apply for citizenship with a deposit amount of 2 million euros.

• All income received by Cypriot firms from the purchase / sale of securities, dividend income is taxed at a zero rate.

• Income from operations with immovable property located outside of Cyprus is also not subject to taxation.

• Income from any foreign affiliates of the firm, subsidiaries, etc. is taxed at a zero rate.

• Cyprus has already concluded more than 50 treaties on the abolition of double taxation.

• Outsourcing is well developed in Cyprus. This applies to audit, accounting and other financial services, telecommunications and equipment maintenance. So, you do not have to keep additional employees on the staff, and when opening your own company, it is enough to hire third-party specialists.