Offshore registration in Cyprus in 2022: what you need to know
Cyprus is on the list of the best jurisdictions for offshore companies. The island is at the crossroads of Asia, Europe and Africa, which facilitates international trade. There are quite a few tax benefits here, and many double taxation treaties have been signed. It is also worth noting the low cost of setting up a business and the prospect of attaining full membership in the EU. Today let's talk about how to open an offshore in Cyprus 2022.
Features of an offshore in Cyprus
There are different requirements for setting up an offshore company than for a local business. For example, the owner and director do not have to live here or be residents of Cyprus. The number of shareholders may range from 1 to 50. If you want anonymity, you can appoint nominee shareholders, but Central Bank must know who the real owner is.
In order for a company to be registered, it must satisfy the following conditions:
- Have a unique name, formalized in the Commercial Registry;
- Draw up Articles of Association, notarized, registered;
- Operate only outside Cyprus;
- A minimum authorized capital of €1 must be deposited in a bank account for the opening of an IBC (International Business Company);
- Arrange a law office on the island;
- Hire a secretary, resident in Cyprus.
In addition to registration as an IBC, the island is often registered holding companies. It is ideal for investors who want to buy movable and immovable property abroad.
The forms of entities which are registered in Cyprus
The island is notable for the different types of companies that can be registered here:
- IBC (International Business Company);
- Limited Liability Company (LLC);
- private foundation;
Tax rates and benefits depend on which legal form will be chosen to register an offshore company. The most common option is an IBC.
How to open an offshore business in Cyprus
The procedure for registering an offshore business in Cyprus consists of the following steps:
- Preparation of constituent papers, which should be drawn up by a local lawyer;
- Reserving the name in the Registry of Companies;
- Opening a bank account and placing the share capital;
- Submission of the incorporation documents to the Commercial Registry;
- Receipt of the incorporation paper;
- Registration for taxes and VAT;
- Obtaining licenses and permits upon request to conduct business.
To set up an offshore company, you must prepare and file the following documents:
- articles of association, memorandum;
- a form with a reserved business name - it is recommended to propose 3 names, specifying in order of preference;
- application forms issued by the Trade Registrar;
- information on the directors and shareholders.
How much does it cost to open an offshore in Cyprus
The price of opening an offshore depends on four factors:
- the form of the business;
- collection of documents;
- filing of the application;
- legal assistance.
Cyprus is an interesting place for offshore business, but the registration process is complicated, so legal support is needed. There are very strict procedures here, and each applicant is thoroughly checked.