Archive for March, 2009
Cyprus Offshore Bank and Cyprus Offshore Company formation.
Posted by peter in Cyprus Bank Account, Cyprus Company Formation on March 16, 2009
If you decide to take your business offshore for instant in Cyprus it is highly recommended to make a good planning for what you need, how you want to set everything up and what the outcome should be.
The best you can do is to write everything down, make a brief description of what it is you want it to be and what you expect once everything is done.
We have such many new client requests which just asking us to open a Cyprus Offshore Company and a bank account, some have not considered what it is they are going to use it for, they open the company (which is pretty easy) and then want a Cyprus bank account for this company but fail to deliver the few required documents we ask for or they become everything ready but don’t use it in fullest.
We think it is time to explain a few general and basic about how to make the prober Offshore Setup to conduct business for instant Online.
Do I need a nominee shareholder and if so should it be a local or foreigner?
First off, you only need a nominee shareholder if you want the company to be anonymously or if you want to avoid paying any TAX on net income.
If you reason to choice a nominee shareholder is to avoid TAX you will need to choice a foreigner, which we also provide. If you want to use a nominee shareholder because you don’t want to be listed in the public register of Cyprus ( become a anonymous company) you can choice a local shareholder, in anyway you only need one.
Do I need a nominee director (local direct) and if so should he be a foreigner?
As explained above in the chapter about nominee shareholder then almost the same apply for a nominee director, it depends very much on what it is you want, is the reason to avoid paying TAX or is it to become an anonymous company! If it is the first you need a foreigner if it is the second one, you can use a local director.
Do I need to have a nominee shareholder or director?
No not at all, you can just incorporate your Cyprus Company in your name or your local company’s name, you just need to bearer in mind that you will be listed at the public register in Cyprus, but you won’t have to pay TAX at all for this Cypriot company.
Also you can open a bank account in Cyprus for your company which is what many clients do. Whether the account is kept anonymously or as a regular business bank account depends on how you made your Cyprus Company structure as described above.
With your Cyprus Bank Account you can send and receive International Wire Transfers, you will become a IBAN number for your account and e-banking (Internet Banking) from where you can manage your bank account 24/7/365. The Cyprus Bank Account can be opened as single currency account (with only one currency of your choice) or as multi currency bank account where you can choice from the currencies EURO, USD, CYP, GBP.
Typically it takes about 4 – 5 days after we received all your original documents for the opening of the bank account to have the account opened, additional 14 days for the codes to be generated and send to your address for the internet access (e-banking).
Another thing which we often get asked is if it is possible to become a merchant account to accept credit card payments for on a website with this company.
Well, yes it is, you can open a Merchant Account and you can use your Cyprus Company for the opening of that account as well as a regular bank account as explained above. However, we don’t work with any bank in Cyprus in regards for the Merchant Account opening, so we use some Banks in Europe which have specialized in this. The moneys can of course be transferred to your Cyprus Bank Account which is connected to your Company in Cyprus.
What are the steps to get started if I would like the full scale of your services?
This is also a question which we get asked often, and to clarify, then we always start with the company since we need this in place to be able to sign a bank account and/or a merchant account on behalf of the Cyprus Company.
Once the Cyprus Company is established (which in average takes 7 days) we go ahead and open the Bank Account with a Cyprus Bank and then we go and apply for the merchant account, since the Acquiring Banks which do the credit card processing will ask for the company details and the banking details before they open the Merchant account, therefore it is important to have the Cyprus Company and Cyprus Bank account in place first.
How it is possible to take your entire Online Business Offshore.
Posted by peter in Cyprus Company Formation on March 12, 2009
Many Offshore Service Agents are only able to help you with the offshore company formation and opening of Offshore bank account, some even if they don’t know anything about this business, also open Merchant Accounts, or at least tell you they can.
Both the Offshore Company Formation and the Merchant Account Industry takes a great amount of knowledge to not mislead clients who think they are in good hands just to later on in the process to find out they didn’t have what they paid for.
In fact everyone can open a Merchant Account and establish an Offshore Company but only a handful are able to make the right setup.
How can it be setup wrong?
Very simple, if the Agent which established your Offshore Company just has a reseller agreement with some accidental provider then it is common to just submit your application to this one, that’s good you think?! Stay on here, now there are so many Merchant Account resellers out there and processors which just started up, that the chance to get your case in wrong hands is almost 95% this you won’t find out at the beginning but if your Merchant Account is wrong coded or they placed your new established Offshore Company in the wrong Visa or MasterCard region you will get big troubles and your entire setup will be shut down and be worthless.
With so many “new kids on the block” in the Payment Industry you can easily risk that the processor which your Agent advised to use is that hungry that they take on any business case also the Merchant case which are out for a scam and will blow up the processor. This will affect you in the way that you risk the volume processed will not be paid and this company will disappear.
Also often seen is that a processor (calculate their profit) first take on a new Merchant Case as new business (while just incorporated in an Offshore Jurisdiction) and after a few month cheese the account and freeze it because they will claim it isn’t legal business.
Since I have been in both businesses for many years I have seen a lot of incidences, the forums around the Internet are full of examples from both sites (the Merchant and the Payment Processor) and in almost any case it is because of a confusion about what it all is about.
Only an Agent which knows the Offshore Company formation business or has a really good network of Tax Advisors and Legal Advisors to back up is trustworthy to go with and can ensure you get the right solution, this applies also for the Payment Processing Industry, you will need to have been in this business for many years and have followed the marked close to be able to advice Online Businesses for the solution that they need.
Don’t be fooled into anything make a good check on the company you consider to go with, ask questions and look how good they are established on the Internet, do they only have a single webpage or have they a well established an sophisticated Internet presents!
I see cases on a daily basis, in our company we get every day a merchant, a processor or an offshore agent which want to work with us and which obviously is new into this. We get requests by people which just have a lousy website and tell us they have been in the business for ages. Sad it is so and it makes it more important than ever to take a close look at the company you consider to deal with.
For more information or the right Offshore Company Formation setup, please contact CCLOGIC
Cyprus Bank Account opening how long does it takes?
Posted by peter in Cyprus Bank Account on March 10, 2009
Since we take such requests serious and want o provide as much information as possible then below you find the explanation and the requirements.
1. How long does it take to open a Cyprus Bank Account, I have been waiting 7 days now?
Normally the account is opened within 3 – 4 days IF all documents are delivered to the bank as original. The entire process depends very much on the client and can take from 7 – 14 days to be completed.
Important to have in mind is, that compared to our competition and many other companies providing such services, then we don’t open the bank accounts in Cyprus our self, and we don’t issue “sub accounts” ,no, what you get with CCLOGIC is a real Cyprus bank account with an IBAN number and a SWIFT code to send and receive international money transfers. This can depending on the work load of the bank take some time and sometimes also exceed the above mentioned time frame.
Since we have several Cyprus Banks to work with, then we are only able to list below the general requirements they can vary from bank to bank.
1. The Bank Account opening application need to be signed, scanned and returned to us electronically.
2. The Application forms need to be send by courier to our address in Cyprus as original together with a copy of Passport, Utility Bill and Reference letter.
Upon receivable of above we submit everything to the Bank that open the Cyprus Bank Account and from that stage it normally only takes 3 – 4 days.
However, the Internet Banking system to access you Bank Account will take about 7 to 14 days before it is accessible for you since the PIN code will be send by courier to you and you need it to access your Bank Account.
Feel free to ask any question CCLOGIC LLC is available at Skype, Live Chat, E-Mail or Phone
Cyprus Offshore Company compared to other Offshore Company types.
Posted by peter in Cyprus Company Formation on March 9, 2009
What is the greatest benefit of registering or incorporated a Cyprus Company compared to any other offshore jurisdictions?
It depends very much on what you are going to use the Cyprus Company for, if you are conducting business on the Internet and seeking a reliable and trusted jurisdiction which is control body is within the European Union then and you need a reliable credit card processing solution then you will have a lot of benefits compared to any Caribbean jurisdiction.
One of the major benefits are that Cyprus is a member of the EU (European Union) it guards for stability (even in this financial crisis) and for protection of your assets and moneys.
Second but not less important, if you run an Online Business and you want to have the possibility to become a Merchant Account with an EU bank you will need to have an EU entity and which also is accepted by the banks. A Cyprus Company is accepted by all banks in Europe and at the same time offers you the same benefits of low to no TAX of net income, assets protection the possibility to anonymize your company or the beneficial owner.
What is a merchant account?
A merchant account is a “bank account” you need with a Acquiring bank that will offer you the possibility to accept credit card payments on your website, you can read much more about it on our blog which is covering this topic from A to Z.
What is a Offshore company?
An offshore company is a company which conducts business in an offshore jurisdiction and is mostly protected by government secrecy and assets protection. Most Offshore Companies are used as Holding Companies or as Shelf Company to get access to EU business.
Visit CCLOGIC LLC today and find out how we can incorporate your offshore company.
Nominee shareholders
Posted by peter in Cyprus Company Formation on March 2, 2009
Nominee shareholders are utilized in most jurisdictions. With respect to publicly traded shares, nominees are commonly, and legitimately, used to facilitate the clearance and settlement of trades. The rationale for using nominee shareholders in other contexts, however, is less persuasive and may lead to abuse. For example, many jurisdictions require corporations to maintain shareholder registers and file annual returns containing shareholders list and directors information. The use of nominees, however, reduces the usefulness of the shareholder register or the shareholder list because the shareholder of record may not be the ultimate beneficial owner.
Where nominee shareholders are used, most jurisdictions employ investigatory means to discover the identity of the beneficial owners. In the United Kingdom, Section 212 of the Companies Act 1985 provides companies with a procedure to identify the beneficial owners of their shares. Under this Section, a company can ask the nominee to disclose the identity of the beneficial owner. If the nominee refuses, the company can apply sanctions such as suspending voting rights, withholding dividends, or refusing to register any subsequent transfer of shares-
However, this doesn’t apply for Cyprus Offshore Companies and is therefore commonly used by many online businesses conducting their business ultimately on the Internet.
For more information how you can become a legit Cyprus Offshore Company and a IBAN Bank Account in Cyprus, please contact CCLOGIC.COM
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