Cyprus Company Formation

Cyprus, a member of the European Union since 2004, is also known as the beautiful island of Aphrodite, providing a fascinating combination of the deep blue waters of the sea and its mountains. Besides the ideal scenes, Cyprus is also ideal for formatting a company. The characteristics of a Cyprus company are the following:

1. Low tax jurisdiction which enables businesses to save taxes:

The low tax rates are combined with extensive network of double tax treaties with clauses which avoid double taxation lower or eliminate completely withholding tax on dividend, royalties, interest. An International Business Company (IBC) takes advantage of the lower tax rates prevailing in the country of incorporation compared to one’s own country, provided there is a double tax treaty between the two countries for the avoidance of double taxation. Lots of countries have signed a deal with Cyprus. Among them are Russia, India, Ukraine and China.
An IBC is used as a vehicle in international tax planning to direct profits out of high tax countries to offshore jurisdictions and international business centers, thus taking advantages of the lower or zero tax rates and double tax treaties; therefore, by directing your taxable income to your offshore company, someone can reduce their tax burden.

2. Anonymity and Confidentiality:

An IBC makes it possible to receive money, commissions, and other income with anonymity. With respect to the beneficial owners, they have the opportunity to carry out businesses without anybody knowing who is behind the company. This applies in several cases such as buying property in any country without anybody knowing who is buying or even hold current assets, such as shares or just a bank account. This is possible through the registration of the shares to nominee shareholders and directors, or in some occasions through the issue of bearer shares.

3. Low administrative costs:

The administration costs are low in running one’s business from offshore business centers. For instance, some onshore destinations such as Cyprus, provide a high standard professional business environment, located near the markets of Europe, Middle East, Africa and the Gulf while at the same time offering high standard living conditions at relatively low costs.

4 Established in International Business Centers with:

Very good infrastructure
Complete legal framework
High level of professional service
Well structured and developed banking system
They are considered respectable jurisdictions although the need to prove substance is gaining place these days while most of them need the company’s financial statements to be audited.

Globalserve Consultants Ltd is an advisory and fiduciary firm based in Cyprus and they have a gather lots of useful information about Cyprus Companies