Setting Up of Cyprus International Trust Procedures
Setting up of C I T Procedures – Simple and Fast
Setting-up-of-c-i-t-procedures : Our Firm has accumulated experience and expertise of over 35 years. We can make the setting up of your Trust fast and simple. Just get in Contact with us and we`ll do the rest. Once you have decided to set up a Cyprus International Trust the following procedures must be followed:
Setting up of a C I T Procedures
a) The Settlor
First and most important element of a C I T is the Settlor. A Settlor can be you, or any other physical person or legal entity. The fact that the C I T can accept as Settlor a legal entity is one of the most important benefits of the trust. It offers confidentiality, protection and safety in the operations of the Trust. For information and assistance on Cyprus Company Registration please get in touch and one of our expert lawyers will contact you immediately.
b) The Trustee
It is the Second important element of the setting up of c i t procedures. Is is a professional person who must be permanent resident of Cyprus. As such we usually appoint a lawyer from our office who is experienced in the handling of the business of the trust. A Trustee has the powers and duties assigned to him by the Settlor.
c) The Beneficiaries
The Beneficiaries can be family members or any other person or class of persons or legal entities. They will enjoy the benefits declared by the Settlor in the Trust. The Beneficiaries can be changed by the Settlor at any time.
Agreement for the duties and the salaries of the Trustee and the Protector
At the time of their appointment the duties and the salary of the Trustee and the Protector are agreed and they are embodied in the Trust. A separate deed can be executed for the salary so that is does not show in the Trust for confidentiality or for avoiding the necessity of changing the Trust every time there is change in the salaries.
Setting-up-of-c-i-t-procedures : Opening a Bank Account for the Trust
Once the Trust is drafted, approved by you and executed, then our Firm will open a Bank Account in the name of the Trust and as the signatory of it the Trustee. In this bank account some money will be deposited to meet the needs of the maintenance of the Trust and any day to day activities, such as Lawyer`s bills, Accounting fees, salaries for the Trustee and the Protector if any etc.
Setting-up-of-c-i-t-procedures : Registration of the Trust
A Cyprus International Trust is registered at the Cyprus Bar Association Trust register and gets a registration number. This is more in line with the law that a Trustee must be a professional and licensed service provider. Once duly executed and registered a Trust becomes a Legal Entity and can own property or carry on any trade or calling or investment as a natural person, through the Trustee. If the Trust is going to carry out any trading or investments it will have to register itself at the Tax Office to get a Tax Identification Code ( T.I.C. ). This will also be done by our Firm for you.
Assignment of the Trust Fund or Property
Once all the above steps have been made it is time for you to deliver to the Trust( assign) the Trust Fund or the Trust Property. The Trust Fund is usually cash money. There is no limit to what the Trust Property can be. It can be Shares, or Bonds, or Gold, or Jewelry, Paintings, Antiques, a Villa, a Hotel, a Chain of Restaurants, Commercial Buildings such as workshops or factories etc.
In case of cash, that is usually deposited in a Bank one or more Notice Accounts for bearing interest. These accounts have as a Beneficiary the Trust, but the manager of the accounts is the Trustee.
In case of movable property such a Share Certificated, Bonds, gold, jewelry, or other objects, they will be safeguarded in Bank safe boxes or in any other agreed manner.
In case of a villa or hotel or other real estate, it will have to be actually transferred into the name of the Trust as absolute owner. In other words the Title Deed of the property will be transferred into the name of the Trust. A Deed can be separately executed defining in detail the way it is to be managed by the Trustee. Assistants or Experts can be appointed to assist in highly technical situations such as Accountants, Tax Advisers, Lawyers etc.
For more information please get in touch with us for free advice.