Choosing the right location for your offshore company is an important decision and not one to be taken lightly. You will need to do lots of research beforehand and take everything into consideration before settling on a destination suitable for you and your business. If you are likely to want to visit the location or even have an office set up there you will need to take the travelling time and distance into account as you don’t want be spending excess amounts of time travelling to and from the jurisdiction.
Other factors to consider are the political and economic stability of the country, this is crucial as a country with an unsteady and unreliable economy is not somewhere you should be willing to secure your money. The paperwork involved in setting up an offshore company should be well established and thus be as simple as possible. The accessibility of double taxation treaties are an important aspect as they reduce withholding taxes on the payment of dividends and royalties from contracting states. There should be reliable and trustworthy advisers who can help you with all areas of the offshore business. A good banking system is vital for any offshore company and reliable telecommunications. Lastly, reputation is especially important when it comes to choosing the right jurisdiction as some countries are known as ‘tax dodges’ and should be avoided as they will give your company a bad name.
Once you have made the decision to set up your offshore company in Cyprus there is no need to actually go to the island to register. The company you have employed to set up the business for you will do everything. In fact, if you never want to go to Cyprus at all there will be no need, however it is a beautiful island and worth taking a look for its beaches, climate and friendly locals. Once you pay a visit to the island you might then decide to move here and bring your family. Many companies operate out of Cyprus already but have never been there and they are international and profitable businesses.
There are a range of business activities that are ideal for offshore company formation. Some of the more common include those that deal in imports and exports, International companies dealing in construction and engineering or transport and distribution, real estate companies, shipping companies, commission agents, E-business and holding companies who receive dividends from foreign subsidiaries.
Always seek advice and information from professionals to assist you with your decision making as you should be made aware of any restrictions and reporting requirements.
Considering setting up and operating your own international company? Then consider Cyprus as the jurisdiction to do it. Strategically located in the eastern Mediterranean, it has the perfect location for access to Europe, Asia and Africa. Its pleasant Mediterranean climate of hot summers and mild winters makes it the ideal place to establish a company where you can have everything you need in a beautiful and relaxed setting.
An independent republic since 1960, Cyprus is governed similarly to other western democracies with the emphasis on human rights, political freedom and private property. Their legal system is familiar as it is based on English Law, added to that, Cyprus is a member of the United Nations, the Commonwealth and the Council of Europe, as well as a member of the European Union.
Language isn’t a barrier in Cyprus as although Greek and Turkish are the official languages, English is spoken by the majority of the residents and commonly used in the areas of business and government.
Cyprus has a well established transport system with two 2 international airports and important port connections. It has a good infrastructure already in place and first-rate telecommunications, banking facilities also offer onshore banks, offshore banking units and dedicated financial organizations.
Many companies are attracted to the island as it is well-known for having one of the lowest tax structures throughout all of Europe. A reputable international financial centre, Cyprus has an extensive system of Double Tax Treaties, a first-rate legal and economic infrastructure already in place and these are just a few of the reasons businesses locate their head offices here.
There are known to be over 20,000 international business companies presently resident and operating on the island. Some of these companies are resident with their head office based here, whilst others are non-residents and facilitate local accountants and lawyers as their representatives.
Cyprus currently has the lowest tax structure throughout Europe and this is what makes it so attractive to those seeking the perfect location for their offshore company. It also offers many advantages in comparison to other jurisdictions and is well known as an international financial centre. The government of Cyprus places no difference on the amount of tax paid, regardless of whether it is a local company or an International Business Company. Everyone pays a single corporation tax rate.
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There are lots of reasons why people choose to visit and even live on the island of Cyprus, amongst these are its perfect climate, stunning beaches and the people themselves. Another important reason are the business opportunities that can be found in this idyllic setting and why so many companies decide to form companies on the island.
Over the years, Cyprus has transformed itself into an international financial centre, helped along by its strategic position close to both Europe and the Middle East, an already established infrastructure in place and a skilled workforce. Once you know that Cyprus also offers its residents and non-residents a favourable tax system and modern banking facilities, it becomes clear as to why so many companies choose to base their offices here.
Cyprus has been a major trading post for hundreds of years with traders visiting its ports and contributing to make the island an important cultural and foreign exchange destination. It has experienced substantial economical success mainly due to the positive policies of its past governments and the ability of the locals to adapt themselves to changing circumstances and market demand. Cyprus was originally an exporter of agricultural products and minerals, over the years it has evolved into a global financial centre and important tourist destination.
Due to this transformation Cyprus has invested millions in the telecommunications sector, and on the island you will find quick and proficient telephone and Internet facilities. Its influx of tourists has also seen the development of a modern transport system with an extensive road network, port facilities and two international airports, making travelling around the island and its surrounding areas an easy and enjoyable experience.
If you are planning on setting up a business in Cyprus the first thing you have to do is to register your company, a relatively simple procedure and normally accomplished within a month. There is also a highly effective system of services to assist those wanting to stat up a business, such as advisory services, legal systems, accountancy, banking and insurance services.
Life on the island is comfortable for businesses as labour costs are particularly lower here in comparison to the average costs in the EU, and office and living accommodation are reasonably priced. One of the main reasons the island is so popular are the tax advantages it offers. The corporate tax rate in Cyprus is 10%, the lowest in the EU; also Cyprus has entered into Double Tax agreements with 40 countries.
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Companies and businesses are attracted to Cyprus for a variety of reasons; one of the main factors is that it has the lowest corporate rate of tax in Europe. It is seen as the perfect place for investments between Central and Eastern Europe and the European Union due to its far-reaching double tax treaty network. As an international financial centre, Cyprus is the ideal place to set up your company.
If your company is a resident of Cyprus then you will have to pay tax. A resident means that the company is managed and controlled in Cyprus. This can mean that the head office is based there and the location where meetings occur or where most of the board members live.
The company is taxed according to its global income. This income can include any profit from the company’s activities, which is anything from trading, manufacturing products, industrial, mining, agricultural, to interest, rentals, royalties and profit from sale of goodwill.
If you have a company that is not resident in Cyprus then it is only taxed on any profits made from a permanent shop in Cyprus. Basically this means if your company has an office, or perhaps a factory, a mine, an oilfield, or a building site working on a project for over 3 months, then it is necessary to pay tax.
The tax laws in Cyprus state that there is no difference between local companies and international business companies. All companies pay a corporation tax rate of 10% applied. There are a few exceptions so it is always advisable to check all the details with a professional before going ahead with any business plans you have.
Anyone who is a resident of Cyprus is taxed, this means if you live on the island for more than 183 days of the financial year. Residents are taxed on their earnings worldwide, so if, for example, you are British and receive employment income or benefits from the UK this will be included in the tax income. Also if you receive any profits from business activities, rentals from property, royalties or pensions, you are eligible for tax.
If you are classed as a non-resident of Cyprus then you are taxed only on the income earned in Cyprus. This can be any employment incomes and benefits, profits from your business activities based in Cyprus, rentals from property within Cyprus and any pensions connected to employment in Cyprus, with exceptions.
If you are an expatriate living in Cyprus you don’t have to pay tax if you are employed outside Cyprus. If you are employed on the island for 183 days or over then you have to pay tax on all income. If you are employed in Cyprus for less than 183 days, you will pay tax according to the salary you receive.
If you have an international business it pays to have an offshore company formation as it is the perfect tax-efficient strategy for any business. Some of the most well known destinations for offshore company formations include Singapore, Hong Kong, and Dubai, all with good reputations and investor-friendly business environments and economically and politically stable. Cyprus is another that is ideal for businesses.
Setting up an offshore company can be the best method of legitimately reduce international taxation and has many advantages.
Choosing to register your offshore company in a reliable and dependable jurisdiction, such as Cyprus, will create a positive and encouraging image of your company to present to your customers, suppliers, investors and banks.
Many companies prefer their international funds to be managed by an offshore company as it can save on taxes and is a legitimate way to protect global assets.
Registration procedures with offshore companies are relatively simple to process in comparison to more traditional trading jurisdictions. There is less information required regarding the shareholders and directors of the business making the whole process much quicker and efficient to carry out.
Many companies interested in setting up an offshore company often work independently as consultants and contractors. If you are involved with any international business, dealing such as dealing in commodity, an IT consultant or financial services consultant, in fact anyone who can be called to work anywhere in the world, if you haven’t already set up a company offshore you should seriously consider it.
Setting up an offshore company is also popular for those looking to set up an import-export company, launch an international trading company, an asset holding company or to hold property investments or intellectual property.
When choosing the jurisdiction to locate your offshore company make sure it is a consistent and dependable destination. Cyprus is one such jurisdiction that is established and renown as an open and reliable jurisdiction.
Choosing a reputable agency with extensive experience in assisting international clients and knowledge of setting up an offshore company will enable the paperwork to be in the correct order and completed with speed and efficiently. The fees they charge will vary depending on the structure of the corporation and the services you require.