Cyprus Offshore Companies

Cyprus offshore companies operate in a business and tax regime that does not distinguish Cyprus offshore companies from local companies.

Because of this, Cyprus offshore companies are normally taken to be those companies that are incorporated in Cyprus but conduct most or all of their operations offshore or overseas, as opposed to Cyprus companies which are based in Cyprus and are involved in local trade, investment and commerce. Cyprus companies that operate mainly in Cyprus are, however, also able to earn money outside of Cyprus and are not restricted to the domestic market.

Cyprus is used as the headquarters of several companies due to low tax environment that exists for doing business. A Cyprus offshore company that is headquartered in Cyprus and trades strictly outside Cyprus can use Cyprus as the place from where goods are exported and international business activities are administered. Nationals of the EU region are able to incorporate companies offshore in Cyprus since Cyprus is member of the EU the Cyprus company is regulated according to EU standards.

A Cyprus offshore company that makes Cyprus its headquarters enjoys low corporate tax as well as other incentives that are available, provided that the criteria for receiving these tax incentives and exemptions are met by the Cyprus offshore company. Exemption from withholding tax on dividends, interest and special privileges that are given to Cyprus companies that do not generate any profits in any given financial year are some of the tax benefits granted.

The company law for Cypriot companies allows for Cyprus offshore companies to be set up as branches of other companies, private or public companies, partnerships or Societas Europaea (European Companies). However, despite these options being available for Cyprus offshore company launching, similar to Panama companies formation, it is advised that a Cyprus company with limited liability or limited by shares is formed if the intention is to go offshore. Cyprus offshore companies with limited liability ensure that the assets of the company are separate and distinct from the personally owned assets of the members. In this way, a Cyrus offshore company can effectively protect assets and be made part of a sound asset protection strategy.

Cyprus offshore companies are also widely used because of the social and economic stability of Cyprus. Businesses and individuals usually want to ensure that the jurisdiction in which their companies are registered and incorporated is of good repute so as to guarantee as much as possible a good image of the company. Cyprus is ideal as a jurisdiction to set up companies and for offshore companies due to developed infrastructure, excellent road networks, the large pool of educated professionals that Cyprus has and advanced technology. Cyprus has reputable banks and is home to some of the longest standing international banks in Europe.

An offshore company Cyprus that is based in Cyprus further benefits from the fact that Cyprus is strategically located in Middle Eastern Europe and is known to be a beneficiary of major foreign direct investment, home to great shipping facilities and advanced ship management services.

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