The term Non Tax Resident international business company (or offshore business) refers to any legal entity whose beneficial ownership and business activities lie outside the country of incorporation i.e.
- Its shares must belong directly or indirectly exclusively to aliens, and
- Its income must be derived from sources abroad and business carried out outside the country of registration.
- Non Tax Resident IBCs (offshore business) are legal, recognized by the authorities.
- the procedures of establishing and operating such entities are simple and the related costs low.
- The Incorporation procedure of a Non Tax Resident IBC is the same with the Cyprus Tax Resident IBC, the only difference is that the Non Tax Resident IBC should not be managed and controlled from Cyprus.
- It offers substantial tax benefits since it is not subject to any taxation in Cyprus. However, it needs to file tax returns in Cyprus and it is required to be able to prove in which country it is tax resident.