An offshore company
represents a business which is set up outside the country where an individual resides and pays taxes
The main reasons why business owners choose to open offshore companies in Cyprus are the tax reductions which they can enjoy and the asset protection offered in this country.
In this article, our lawyers in Cyprus
describe briefly how to open an offshore company in Cyprus
Aspects to consider when opening an offshore company in Cyprus
An offshore company in Cyprus is named an international business company. Here are the main aspects to take into account when opening such an establishment in this country:
• Decide on a legal form
: an offshore company in Cyprus
represents a separate legal entity and can be a private limited liability company
o Limited shares; or
o By member personal warranty.
Generally, in our Cypriot lawyers' experience, the offshore companies in Cyprus are opened as limited liability companies;
• Choose a company name: it has to be approved by the Registrar of Companies;
• Memorandum and articles of association
: the shareholders’ number in a limited liability company in this country can be from 1 to 50. Our Cypriot lawyers
can offer more details on this matter;
• Establish the minimum share capital: a limited liability company in Cyprus may have a minimum share capital of EUR 1,000;
• Name the directors of the business and the company secretary;
• Set up the registered office: each company in Cyprus must have a registered office and address in the country which should be submitted to the Registrar of Companies;
• Other considerations
: our attorneys in Cyprus
can provide further information on what these other considerations consist of.
Taxation for offshore companies in Cyprus
The corporate taxes which are applied to domestic businesses generally apply to Cypriot offshore companies, too.
The profit taxation for offshore companies and branches with a management board in the country is 12,5%, being one of the lowest in Europe.
There are no withholding taxes on dividends, royalties and interests paid by international business companies, either.
If you need to know more about Cyprus offshore company formation
, we invite you to get in touch
with our reputed law firm in Cyprus