First and foremost, an offshore company is a business entity that is established outside the country where the owners and stakeholders are residents and pay taxes. Thus, the offshore companies are also known as non-resident companies. Despite the fact that the offshore company will be registered in Cyprus, all of its activities will be operating outside the country and the main reasons for that is the tax reduction and the protection of the assets of the company.
Benefits of establishing a Cyprus company are the following:
1. Use of a Nominee Director/Secretary and Shareholder is allowed for full confidentiality and anonymity.
2. The share capital of the company does not have to be fully paid in cash at the time of incorporation but you can do it even later.
3. It is an European company and acceptable Worldwide.
4. Bank account opening within the country and abroad as the formation of Cyprus company is accepted by the most Bank.
5. You can get an EU Vat registration number easily and VIES Registration for EU transactions.
6. You can incorporate the company without having to visit Cyprus and the operation can be remotely.
7. A Cyprus company pays only 12.5% tax on its net profits. ( Low tax system not TAX Heaven )
8. A Cyprus company pays 0% tax on dividends paid out to the shareholders.
9 A Cyprus company pays 0% tax, on all dividends received from any of its subsidiaries.
10. Cyprus does not impose income or capital gains on profits and gains derived from the disposal of securities, irrespective of whether the profits and gains are considered to be of revenue or a capital nature! (*)
11. A Cyprus company pays 0% on all profits by operating any permanent establishment abroad, such as a hotel, a chain of restaurants, shops etc.
12. A Cyprus company pays only 2.5% tax on all profits from Intellectual Property rights, such as patents, trade names, trademarks etc
13. Incorporation of a Cyprus company gives the right to the Real Owner and his family members to a long stay visa for two years and work permit.
14. A Cyprus company can be re-domiciled abroad to any other country without any big delays.
15.. A Cyprus has signed different agreements for Double Taxation Avoidance Treaties all over the world.
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- According to the Cyprus Tax law if a Cyprus company pay a dividend to another
Cyprus company, then the dividend is exempt from 17% of Special Defence
Contribution (SDC).
- Cyprus offers one of the best quality lifestyles with high living standards and safety.
- There is no need to appoint a local shareholder or director. There is only a
requirement which is to appoint one shareholder and one director who can be
foreigners and also the shareholder can be the director as well.
- In Cyprus 100% foreign ownership is permitted in an offshore company.
- There are no disclosure requirements and there is full confidentiality when it comes
to the shareholders and owners of the company except if there is any criminal or
other investigation.
- Cyprus has double tax treaty agreements with 50 countries such as China, EU
countries, Russia, Japan, Canada, Singapore and USA which is a very important
aspect to minimize tax.
- According to the Cyprus Tax law there is an exemption from capital gains tax (except
on sale of immovable property situated in Cyprus).
- Profits from the disposal of shares are not taxable for all Cyprus tax residents.
- Profits earned from a permanent establishment abroad are fully exempt from
corporation tax.