Frequently asked question
What are the advantages of establishing an offshore company?
Having an offshore company usually implies the following advantages:
- It is not necessary to keep accounts (with a few exceptions).
- Lump sum taxation.
- Anonymity of the owner.
- Details of ownership are not publically accessible.
- No Inheritance Tax and/or Gift Tax.
- Low operational costs.
- Minimal or no State intervention.
- International image.
What is nominee service? Why is it important?
With the nominee service, your company acquires a statutory body and /or shareholders.
Our clients typically use this service for the following reasons:
- Need to stay anonymous.
- Protection of privacy.
- Lack of people able to constitute their statutory bodies.
- Elimination of business risks, including those linked to the performance of the statutory body.
- Legal requirement to have a foreign statutory body in a foreign company.
In which concrete countries will I be required to keep accounts?
Companies residing in Cyprus, the UK and Hong Kong are required to keep accounts.
The price for keeping accounts depends on the number of invoices.
What documents do I need to submit when establishing a company?
When establishing a company, you need to submit a copy of your passport and confirmation of your residence from the legal owner of the property, as well as the addresses of the company’s directors and shareholders.
If the shareholder is a legal entity, it is necessary to submit the Certificate of Incorporation, Certificate of Incumbency and Certificate of Good Standing.
When establishing a company in Cyprus, clients are required to complete Due Diligence forms and simple CVs.
Can one person be a manager and shareholder at the same time?
Yes, one person can be an executive manager while also being a shareholder.
What is the procedure when establishing an offshore company?
Complete all the required information in our online form and pay the fee for establishing a company. Our Project Manager contacts you and requests that you send us all the necessary documents, typically a copy of your passport and confirmation of your residence.
Once we have all the information, we initiate the process of establishing a company. As soon as the company is established, we send you the founding documents, scanned at first; subsequently by registered mail or messenger to an address of your choice.
If you opt to use the “nominee service”, you are required to sign and send us the Nominee Agreements, at first scanned by email and subsequently the originals by registered mail.
What is a ready-made company?
The simplest way to start your business today is to purchase a “ready-made” (i.e. established) company.
Not only can you start conducting your business almost immediately, but you will also avoid the rather lengthy process of establishing a new company.
When is the annual fee for company administration due?
The annual fee is to be paid within one year after the company is established. For instance, if your company is established on 1 August 2018, the annual fee is due by 1 August 2019.
We send our clients the relevant invoice two months in advance and require them to settle the amount at least one month before the due date.
If the annual fee for administration is not paid in time, we cease to provide our services to the client.
How long does it take to open an account for my company?
It depends on the bank that you choose to have an account with. For information on how long it takes for banks to open an account, see Section Bank Account.
However, it is necessary to duly submit all the forms and information that the bank requires from you.
What happens if I fail to settle the company renewal fee?
If the company renewal fee is not paid one month in advance, the registration agent will resign and the information is sent to the relevant Commercial Register.
The Commercial Register has the authority to revoke the company and/or impose a fine on the client.
Which country should I choose as my business residence?
Choosing a suitable jurisdiction is of great importance. You need to consider in what type of industry and in which countries you expect to conduct business.
It is a good idea firstly to discuss your intent with your tax advisor or accountant.
Are offshore companies required to keep accounts?
With a few exceptions, they are not required to keep accounts.
They only pay a lump sum tax, which is included in the company renewal fee.
When can I expect to receive the company’s founding documents?
It depends of which jurisdiction you choose. We usually send you the original founding documents within two weeks.
What are the rules for business companies in Cyprus?
Companies in Cyprus are required to keep accounts. If the company is a VAT payer, it is required to submit VIES on a monthly basis. This implies that we need to receive your invoices for each month by the 10th day of the following month.
Companies in Cyprus are required to submit a Tax Return form every three months. The deadline for filing the Income Tax Return depends on the date on which the company was registered as a VAT payer.
The audited final accounts need to be submitted by 31 December for the previous calendar year. This means that final accounts for 2018 need to be submitted by 31 December 2019.
In May, companies are required to pay an annual fee of € 350 to the Registrar of Companies of Cyprus.
What happens if I fail to submit final accounts? Is it a problem?
In Hong Kong, the UK and Cyprus, companies are required to keep accounts and submit final accounts.
Failing to do so may result in a fine.
Do you have another question?
Send a message to us…