What is a Cyprus Offshore Company?
The most commonly used form of company in Cyprus is the private limited liability company. In this company you need to have a Director, a Shareholder and a Secretary. You can of course have more than one. There is no limit as the number of Directors nor the Secretaries. Regarding the shareholders, you can have up to fifty of them. See the interesting article on the subject of Nominee Shareholders for confidentiality.
In a Cyprus Offshore Company, you must also have a capital. As such it can be anything from one Euro upwards. There is no limitation. You will have to pay a tax of 0.06% on the capital of your Cyprus Offshore Company. You pay that only once.
So I repeat the question. What is a Cyprus Offshore Company? There are two types of private limited liability company you can have. The one is the so called Tax Resident company and the other is the Non Tax Resident. The Tax Resident company is the one which has a Director who permanently lives in Cyprus. So the management and control is considered to be in Cyprus. This company pays taxes in Cyprus. Form more reading on the subject of Cyprus Corporate Tax follow this link.
The other type is the company which does not have its management and control in Cyprus. This type of company is considered to be an offshore company in the sense that it does not have to pay taxes in Cyprus.
What Are the Formalities for a Cyprus Offshore Company?
A Cyprus Offshore Company has to follow all the obligations as to filing of all necessary documents. The Cyprus Company Law and the Income Tax legislation regulate this. A Cyprus company has to register at the Tax Office and get a TIC number. And after that it has to file yearly audited accounts.
It has also to register with the VAT Authority to get an EU VAT Registration number. As such it will have to file Vat Declarations every three months and pay any Vat Tax payable.
Also a Cyprus Offshore Company has to file some documents at the Registrar of Companies every year. These are, the HE32 form, Financial Statements and pay of course the yearly Registrar Renewal Tax of 350 Euro.
Benefits of a Cyprus Offshore Company
There are many benefits for you to gain by registering a Cyprus offshore company. It is an EU company and as such has no problems to operate everywhere. You can open a Bank Account for it in all countries. It is cheap to register a Cyprus company. It is also cheap to operate. You can have all the documents in English. When you make changes you can have them very fast. There are more than 65 Double Taxation Treaties of Cyprus with other countries. This gives you a big advantage.