FAQ –frequent Asked Questions Section
What is an offshore company?
How long does it take to incorporate a Cyprus International Company?
What are the costs?
What is the basic procedure for Cyprus International Company incorporation?
Is my privacy protected?
What personal documents must be provided of beneficiary owners?
What are the company certificates issued after incorporation?
What are the advantages of operating a Cyprus offshore company?
What is the procedure for bank account opening?
What are the ongoing annual obligations of a Cyprus Company (Financial reporting and auditing requirements)?
How do I proceed?
What is an offshore company?
An offshore company or corporation is the same as any other company in that it is an entity recognised by law as a separate "entity" with limited liability. As such the company has the option to sell shares, the right to sue and be sued, and has perpetual existence.
An IBC (International Business Company) is the most popular type of offshore corporation for asset protection and privacy purposes. An IBC is usually a tax-exempt corporation that can do business all over the world except in the country where it has been incorporated.
How long does it take to set up an offshore company and bank account?
The time of incorporation of a Cyprus IBC will be about 2-3 Working days from the date we receive the required information from you and after the approval of the company name (time of approval of company name about 1-2 working days). Time for opening a bank account would be three working days after incorporation.
What are the costs?
Company formation fees, recurring annual fees, and administration costs charged by our associates and us can be found at the prices schedule.
What is the basic procedure for Cyprus International Company incorporation?
Step 1
Speak to a consultant
Tell us a little about your requirements or the information you require and a consultant will contact you directly to discuss and establish the best solution to meet the challenge of your particular situation. Use our email or the info-form of our site.
Step 2
Order by fax or mail
If you are an existing client, an intermediary, or a new client who has received the appropriate advice, you can place your order by fax or mail by downloading the company incorporation questioner and faxing or mailing it to the appropriate email - fax.
Step 3
Application to be made for approval of company name.
Once the details and order is obtained for incorporation of a new company an application would be made for approval of the company name to the registrar. The name of the company should be a unique name worldwide and if used by an already registered company anywhere an authorisation should be given by the owner of that company for use of the name in Cyprus. (Time of approval of company name about 1-2 working days
Step 4
Completion of the company forms and documents and signature by nominee shareholders/directors or/and beneficiary shareholders depending on each case and by settlement of the invoice for incorporation the forms together with the registrar documents would be submitted for registration.
Step 5
Sending of completed and signed company certificates to beneficiary owners
Once registration is completed the company certificates would be sent to the beneficiary owners.
Is my privacy protected?
Whilst we respect and honour the confidentiality of our corporate clients, we are committed to carry out a thorough due diligence of both our clients' identities and the nature of their business. Our clients must disclose to us both the reason for setting up an offshore entity and the type of business the offshore entity is likely to conduct. We are obliged to monitor and ensure that the activities of the offshore entity do not breach any international regulations. This formal approach to due diligence benefits all parties.
What personal documents must be provided by beneficiary owners?
The following personal documents must be provided by the beneficiary owners:
Passport copies
Utility bills
What are the company certificates issued after incorporation?
The following company certificates and documents will be forwarded to you after the incorporation of the Cyprus IBC:
• Certificate of incorporation
• Certificate of directors and secretary
• Certificate of shareholders
• Certificate of registered office address
• Memorandum and articles of association
• Blank resignation of nominee directors and secretary
• Declaration of trust and blank transfers of shares
• Share certificates / letterheads / invoices / company stamp
What is the procedure for bank account opening?
After registration of the company we would act as introducers to a Cyprus bank for an account or accounts to be opened. To act as introducer it requires a good Knowledge of the company and its directors to open the bank account as well of the proposed business for the prevention of money laundering acts and a standardised paperwork to be completed and submitted to the bank . Time for opening a bank account would be three working days after incorporation once request is made.
What are the advantages of operating a Cyprus offshore company?
A new legislation has been passed which will be effective from 1 January 2003.The tax reforms introduce a lot of changes in the operations and regulations of the international business companies to conform with European Union law in the light of the Cyprus accession to the EU and the EU Code of Conduct and abide by its commitment to the OECD to eliminate harmful tax practices and money laundering.
With the new legislation, Cyprus maintains and enhances its competitiveness as a reputable international financial center and distinguishes itself from the infamous tax heavens. Furthermore, it remains a perfect location for investments to and from Russia and Central and Eastern Europe and a perfect business base for the international businesses who are interested for the markets of the region. At the same time, having the lowest tax regime in the EU, it becomes a stepping -stone for investments to and from the European Union.
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What are the ongoing annual obligations of a Cyprus International Business Company?
Bookkeeping and Financial Statements
Every company is required by law to keep such records as are necessary to give a true and fair view of the state of the company's affairs and to explain its transactions.
The provisions of the Cyprus companies law regarding the form and contents of accounts are very similar to those of the UK Companies Act of 1948. More specifically, the company's accounts must consist of:
- a directors' report;
- an auditors' report;
- a profit and loss account; and
- a balance sheet.
Quarterly VAT Returns
Depending whether the company must register to the VAT Authorities or be voluntarily registered Quarterly VAT Returns should be completed and submitted to the VAT Authorities.
Audit of the Financial Statements
The need to have the accounts of Cyprus legal entities audited by independent auditors in the case of companies the requirement emanates from the law.
IR4 “Company Income Tax Return” Submission
IR4 “Company Income Tax Return” Submission to the Inland Revenue Authority for the Fiscal year in which the company existed by 31 December of the following year. This would be based on the audited financial statements.
Annual return
Every company must file every year a return to the Registrar of Companies known as the Annual Return.
How do I proceed?
Use our ordering facilities to instruct us to set up the solution and put administration and support services in place. Choose the option that suits you best:
1. Speak to a consultant
» Ask us to contact you or » Contact our office to advice on various issues
If you are an existing client, an intermediary, or a new client who has received the appropriate advice, you can place your order by fax or mail by downloading the Company formation questioner and faxing or mailing it to the appropriate office.
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