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FAQ on Offshore Companies in Cyprus

FAQ on Offshore Companies in Cyprus

Updated on Monday 27th November 2017

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faq-on-offshore-companies-in-cyprus.jpgCyprus is a country with great business and financial structures and offers numerous tax advantages. Therefore, many foreign investors feel attractive to opening an offshore company on the island.
 
Here are 10 of the most frequently asked questions on offshore companies in Cyprus our Cypriot lawyers have received from our clients over the course of the years.
 

1. What is an offshore company?

 
An offshore company represents a legal entity registered in a jurisdiction with zero or low taxes and with a non-resident status.
 

2. Are offshore companies available in Cyprus?

 
Indeed, offshore companies can be acquired by foreign entrepreneurs in this country.
 

3. Why open an offshore company?

 
There are many purposes for which entrepreneurs choose to open an offshore legal entity. Among these, our lawyers in Cyprus mention:
 
For offshore trading;
For offshore investing;
For offshore ship-owning;
For owning offshore private funds;
For effectuating offshore finance activities.
 

4. What is the time frame required to open a ready-made company in Cyprus?

 
The time frame required to set up a ready-made company in Cyprus is two to three business days after receiving the name approval from the local government.
 

5. Do I have to provide the accounts of the business to the local tax authority?

 
In Cyprus, it is required to produce annual accounts, as well as auditing when running an offshore company here.
 

6. Do I have to travel to Cyprus at the time of the company incorporation?

 
It is a frequently asked question about offshore Cypriot companies our attorneys in Cyprus often get. The answer is no, it is not necessary for the entrepreneur to travel to Cyprus at the time of the company incorporation. We can take care of all the details from here, as long as you provide us with all the necessary documents via fax or post. 
 

7. Can the company trade inside of Cyprus?

 
An offshore company in Cyprus cannot trade inside of the country.
 

8. Does a bank account come together with the offshore company?

 
An offshore company does not come together with a bank account. Opening a bank account represents a distinct process.
 

9. Why Cyprus for an offshore company?

 
Cyprus brings many advantages for offshore companies, among which our lawyers in Cyprus would like to mention:
 
A great degree of trustworthiness;
Numerous tax incentives;
No capital gains taxation;
Foreign employees are exempt from paying social insurance contributions;
The net profits of the companies are taxed at a flat rate of 10%;
Other advantages. We can offer more details on what they consist of.
 

10. Are offshore companies able to own patents and licenses?

 
Usually, offshore companies can own any item, be it material or intellectual. 
 
If you have more questions about offshore companies in Cyprus, or for assistance in opening such a legal entity in the country, please contact our law firm in Cyprus.

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