Guide to Setting Up an Offshore Company in Cyprus: A Step-by-Step Overview

Background & General Outline

The European Union island of Cyprus sits at a strategic point between Europe, North Africa, and the Middle East. Covering 9200 square kilometres, it’s capital is Nicosia but much of the economic activity occurs in Limassol in the south.

Cyprus is a member of the British Commonwealth and the official languages are Greek and Turkish. Most professionals speak fluent English, particularly when it comes to business. The currency is Euro and it is home to around 1.9 million people. Along with Cypriots, there are a large number of Greeks, Turkish, Chinese, and Russian citizens who call the island home.

Economy wise, tourism is a major industry. Millions visit the island each year and luxurious resorts and apartment complexes have sprung up around the country. Other than this, Cyprus is home to a thriving forex and financial services industry. Crypto currency and block chain have grown in recent years, and Cyprus is considered one of the best offshore European Union jurisdictions. With a high income economy and an even higher level of human development, it’s the perfect choice for offshore company incorporation.

Process to Start an offshore company in Cyprus

Setting up an offshore company in Cyprus involves a straightforward process. It’s important to note that regulations and procedures may change, so it’s advisable to consult with legal and financial professionals or relevant authorities for the most up-to-date information. Here is a general guide to setting up an offshore company in Cyprus:

1. Choose a Business Structure:

Cyprus offers various business structures, including private limited companies, public limited companies, and partnerships. The most common choice for international investors is the private limited company.

2. Name Reservation:

Choose a unique name for your company and check its availability. The name must comply with Cyprus regulations, and it is advisable to reserve it with the Cyprus Registrar of Companies.

3. Appointment of Directors and Shareholders:

Private limited companies in Cyprus must have at least one director and one shareholder. Directors can be individuals or corporate entities, and they don’t need to be residents in Cyprus. Shareholders can also be non-residents.

4. Registered Office:

A registered office address in Cyprus is required for the company. This address will be used for official communications, and it must be a physical address, not a P.O. Box.

5. Share Capital:

Decide on the share capital for the company. Cyprus does not impose a minimum capital requirement, and the capital can be denominated in any currency.

6. Company Registration:

Prepare the necessary documents, including the Memorandum and Articles of Association, and submit them to the Cyprus Registrar of Companies for registration. The process involves completing forms, providing details about the directors and shareholders, and paying the registration fee.

7. Taxation:

Cyprus is known for its favorable tax regime. Companies registered in Cyprus are subject to corporate income tax on their worldwide income, but they may benefit from various tax incentives and exemptions, including the participation exemption.

8. Banking:

Open a corporate bank account in Cyprus. Cyprus has a well-established banking system, and it is advisable to choose a reputable bank to handle your business transactions.

9. Compliance and Reporting:

Ensure compliance with ongoing requirements, such as filing annual financial statements and tax returns. Non-compliance may result in penalties.

10. Professional Assistance:

While the process may seem straightforward, it’s recommended to seek professional assistance from lawyers, accountants, or business consultants familiar with Cyprus laws and regulations.

For more information regarding setting up an offshore company in Cyprus, you can contact us or to start your application process click on “Start Application Process” button below!

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