Frequently asked question
What are the advantages of establishing an offshore company?
- 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?
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?
The price for keeping accounts depends on the number of invoices.
What documents do I need to submit when establishing a company?
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?
What is the procedure when establishing an offshore company?
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?
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?
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?
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?
It is a good idea firstly to discuss your intent with your tax advisor or accountant.
Are offshore companies 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?
What are the rules for business companies in Cyprus?
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?
Failing to do so may result in a fine.