Cyprus Offshore Company
Cyprus is a prospering democratic independent republic country that does not distinguish between local (onshore) and offshore Cyprus companies. The Cyprus Company can be either a local company or an offshore company, like Belize company, subject to where its business is conducted, within or outside of Cyprus. Therefore regular Cyprus companies can undertake offshore activities if desired. Cyprus companies are all resident companies regardless of whether their main activities involve external or local trade as long as that company is controlled and managed from within Cyprus. A nonresident Cyprus company is one which is incorporated and registered in Cyprus but operates solely abroad with foreign nationals and companies. Cyprus offshore companies that are used specifically for international operations and activity are not called Cyprus offshore companies since they are subject to taxations on the income generated outside of Cyprus.
Cyprus offshore companies have proven to be a very advantageous form of corporate entity to many who do business in, with and around Cyprus. Unlike offshore companies in other jurisdictions, Cyprus residents and nationals can incorporate a Cyprus company used outside of Cyrpus, and these companies are not restricted from doing business locally or onshore.
Given that, Cyprus legislation does not have any specific legislation for a specific entity used to conduct international business, various corporate forms of Cyprus corporations are available to entrepreneurs and investors. The main legal commercial entities in Cyprus are private and public companies, general and limited partnerships, branch companies and European companies (SE). The Cyprus Companies Law governs these types of Cyprus corporations.
In the Cyprus Private Company the number of shareholders is limited to a maximum of fifty (50) shareholders and can be incorporated with just one member. Cyprus private companies are not allowed to transfer shares or offer shares to the public. Alternatively, the minimum number of members in the Public Cyprus Company is seven (7). This class of Cyprus Company, unlike the Private class company, can sell its shares to the public.
Cyprus Partnerships are incorporated under the Partnerships and Business Names Law, and there are two basic types of Cyprus partnership companies: general partnerships and limited partnerships.
Cyprus general partnerships are different from limited partnerships in that the partners of a general partnership are personally and collectively responsible for the partnership’s accumulated liabilities, debts and obligations. This liability is avoided in a limited partnership in which only one or more partners assume the responsibility of general partnership while the remaining partners hold limited liability to the debts, liabilities and obligations of the partnership.
In addition to the low corporate tax rates in Cyprus, companies may also benefit from several other tax exemptions such as tax exemption on interest and dividends, and further, these Cyprus companies may also be exempt if that Cyprus company has not been profitable and can show a loss over its financial year. International companies choose to use Cyprus as the company’s headquarters location because of the low tax regime in Cyprus. The set corporate tax for all Cyprus companies is 10% , and that is levied on all income whether generated locally or internationally.
Many companies use Cyprus as the headquarters for their companies because of the low corporate tax rate that Cyprus has. Form Cyprus, these companies can export and engage in external commerce using a Cypriot company which is regulated in accordance with EU and international standards.
A Cyprus company can be used as shipping companies, manufacturing companies, pharmaceuticals, professional service companies and exporting companies. The way in which a Cyprus company is used depends on the business activities undertaken and services offered by the company.
Cyprus offshore companies have access to an advancing business climate and benefit from Cyprus’s tactical status as a Middle Eastern EU country. Cyprus is a member of the European Union, and the euro is its official currency.