Formation of Cyprus IBC (Offshore)

FORMATION OF CYPRUS IBC (OFFSHORE)
A few Words about Cyprus

Cyprus offers excellent advantages, which few offshore centres can offer. With a privileged geographic location at the east Mediterranean, is the crossroad of three continents, Europe, Asia and Africa. Cyprus has become the golden bridge between East and West, North and South.

Cyprus' entrepreneurial environment and supporting facilities compare favourably with those of the best-established centres in the world. The island is considered to be a primary offshore and international business centre among approximately 50 countries offering facilities for these purposes.

Cyprus provides a complete range of facilities for the conduct of commercial, professional, financial and maritime activities worldwide. International business Companies incorporated in Cyprus enjoy a low tax regime (from zero to 10%), an impressive number of double tax treaties, excellent infrastructure (telecommunication and air transport), high level of professional services and the respectable status of the Cyprus registered entity

Double Tax Treaties
Cyprus has concluded an impressive number of treaties for the avoidance of double taxation. There are currently 34 in force. The existence of these treaties, combined with the low tax paid by IBC (offshore enterprises) , and the nil withholding tax rate on dividends, interest and royalties, offer significant possibilities for international tax planning through the island. For example, in the case of a group of companies operating worldwide, the countries where the group has high tax liabilities are identified and, in arms length manner, the Cyprus company through charges, reinvoicing, royalties, interest e.t.c. lowers profits in the high tax country and declares them for taxation in Cyprus at a much lower rate.

Conclusion
Summing up we must stress that Cyprus is not a "tax heaven" with "zero tax" regime, but a reputable "tax incentive" country with low tax coupled with an impressive network of double tax treaties, offering tremendous possibilities for international tax planning.

IBC (Offshore business) in Cyprus
Our firm can provide to you a leading service for the registration and operation of IBCs (Offshore Companies).

The management of the firm is carried out by Professionally Qualified Chartered Certified Accountants, and all the staff undertake continuous training and development to ensure that understand your needs and deliver service standards which exceeds your expectations.