“Saving Tax” doesn't have to be taxing

A very popular and effective tax mitigation option, which International Trading Companies have is to move their tax bases to stable, low-tax jurisdictions. Popularity of low tax jurisdictions amongst the international trading companies is also due to the fact that it is relatively easy to implement highly tax efficient corporate structures for such companies. Let's have a quick look at it….

Trading between two companies involves one company buying the goods/services and the other company (seller) getting the payment in exchange. In ordinary cases (where, No low-tax jurisdiction alternatives have been used), the country which gets to charge the tax (corporate tax) on the profit made by the seller is the home country of the seller (i.e. where the seller is resident). But, by creating an intermediary company in a low-tax jurisdiction, it is possible to get the most of the profits (if not all) taxed in low-tax jurisdiction as opposed to the home country, thereby saving a substantial amount on the taxes otherwise payable in the home country. Such an intermediary company can be used to play a very effective role in any of the areas like sales, distribution or export-import to ensure that the above benefits are gained.

The exporters and importers alike could use such a corporate arrangement to ensure that the profits gained in exportation / importation (on eventual sales of the imported goods) is accumulated in the low-tax jurisdiction through the intermediary company. In fact, the intermediary company could be used to purchase directly from the producer or wholesaler and get the goods delivered to the buyer (customer). Moreover, in most cases, it is not a requirement to have the physical delivery of the goods in / through low-tax jurisdiction to gain the desired taxation benefits.

Are there any particular considerations for such corporate structures?

This corporate structuring has to be set up under certain rules and one of them is the arm's length principle, which is used (in effect) by many countries to ensure that the profits allocated to the low-tax jurisdictions are not unfairly large. The implementation of such rules varies from country to country and that's where certain countries, such as Cyprus (where there is absence of strict transfer pricing rules), are advantageous to operate from. In order to justify and rationalize the allocation of most of the profits to the low tax jurisdiction, specialist tax advice should be sought at the time of company incorporation to ensure that all the nuts and bolts are in place. With the aid of specialist tax advice, such a corporate structuring is certain to be very beneficial for trading companies in saving substantial amounts on tax.

“It is” but “Not all” about Tax saving

While the huge savings in taxes often provide an obvious advantage and incentive to move tax base to low-tax jurisdictions, there are many more strategic reasons and considerations, which also have to form a part of the decision making, such as:

1. Does this new base open a new market for your business, markets such as EU?
2. Does the new base offer your business the strategic locational advantage such as proximity to multiple trade hubs / continents?
3. Does the new base offer politically stable and economically strong (growth possibilities) region?
4. Does the new base have the advanced infrastructure for banking, telecom etc?
5. Will the new base enhance your company's brand and chances of securing more business?
6. Does the new base have favourable tax treaties with other countries?
7. Is the new base viewed with suspicion in the eyes of most of the countries? – Be careful with traditional tax havens / offshore jurisdictions. They may not be advantageous in the longer run.
8. Is the new base welcoming to the foreign companies?

So, what are the jurisdictions which international trading companies can use to attain the above benefits? Well, the answer in EU is unanimously Cyprus.

Cyprus: An “Ideal” location to operate your international trading company from

One of the best jurisdictions, which can be used to effect the above corporate structuring, is Cyprus. This is simply because of the natural tax advantages Cyprus holds in addition to its EU and Eurozone member status. At a high level, following are some of the most important benefits and reasons for international trading companies to consider shifting to / starting in Cyprus as a base for their international operations.
-Corporate tax rate of 10% (Cyprus is the “Lowest-Tax” European Union jurisdiction)
-EU and Eurozone member (Respectable EU member state, not a traditional Tax Haven or Offshore Jurisdiction. This is very important consideration for long-term viability of the business)
-Cyprus is recognized as one of the best, investor-friendly tax system in European Union (EU)

-Tax Exemptions (No Tax) on:
Dividend Income
Profits from the sale of securities (shares, bonds, debentures etc)
Liquidation of the Cypriot Company
Profits (Capital Gains) on Permanent Establishment

- No Withholding taxes on payments of dividends, interest and royalties
- No debt-equity and thin capitalization rules
-Access to EU directives which helps further on taxation planning for trading with EU countries
-No Capital Gains Tax except for the real estate situated in Cyprus
-Absence of no strict Transfer pricing rules
-Vast network of Double Tax Treaties
-Interest deduction for borrowing costs provided
-Low Personal tax rate
-Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies
-Tax losses can be carried forward indefinitely

Find more information at : Cyprus Company Formation

“Saving Tax” doesn't have to be taxing

A very popular and effective tax mitigation option, which International Trading Companies have is to move their tax bases to stable, low-tax jurisdictions. Popularity of low tax jurisdictions amongst the international trading companies is also due to the fact that it is relatively easy to implement highly tax efficient corporate structures for such companies. Let's have a quick look at it….

Trading between two companies involves one company buying the goods/services and the other company (seller) getting the payment in exchange. In ordinary cases (where, No low-tax jurisdiction alternatives have been used), the country which gets to charge the tax (corporate tax) on the profit made by the seller is the home country of the seller (i.e. where the seller is resident). But, by creating an intermediary company in a low-tax jurisdiction, it is possible to get the most of the profits (if not all) taxed in low-tax jurisdiction as opposed to the home country, thereby saving a substantial amount on the taxes otherwise payable in the home country. Such an intermediary company can be used to play a very effective role in any of the areas like sales, distribution or export-import to ensure that the above benefits are gained.

The exporters and importers alike could use such a corporate arrangement to ensure that the profits gained in exportation / importation (on eventual sales of the imported goods) is accumulated in the low-tax jurisdiction through the intermediary company. In fact, the intermediary company could be used to purchase directly from the producer or wholesaler and get the goods delivered to the buyer (customer). Moreover, in most cases, it is not a requirement to have the physical delivery of the goods in / through low-tax jurisdiction to gain the desired taxation benefits.

Are there any particular considerations for such corporate structures?

This corporate structuring has to be set up under certain rules and one of them is the arm's length principle, which is used (in effect) by many countries to ensure that the profits allocated to the low-tax jurisdictions are not unfairly large. The implementation of such rules varies from country to country and that's where certain countries, such as Cyprus (where there is absence of strict transfer pricing rules), are advantageous to operate from. In order to justify and rationalize the allocation of most of the profits to the low tax jurisdiction, specialist tax advice should be sought at the time of company incorporation to ensure that all the nuts and bolts are in place. With the aid of specialist tax advice, such a corporate structuring is certain to be very beneficial for trading companies in saving substantial amounts on tax.

“It is” but “Not all” about Tax saving

While the huge savings in taxes often provide an obvious advantage and incentive to move tax base to low-tax jurisdictions, there are many more strategic reasons and considerations, which also have to form a part of the decision making, such as:

1. Does this new base open a new market for your business, markets such as EU?
2. Does the new base offer your business the strategic locational advantage such as proximity to multiple trade hubs / continents?
3. Does the new base offer politically stable and economically strong (growth possibilities) region?
4. Does the new base have the advanced infrastructure for banking, telecom etc?
5. Will the new base enhance your company's brand and chances of securing more business?
6. Does the new base have favourable tax treaties with other countries?
7. Is the new base viewed with suspicion in the eyes of most of the countries? – Be careful with traditional tax havens / offshore jurisdictions. They may not be advantageous in the longer run.
8. Is the new base welcoming to the foreign companies?

So, what are the jurisdictions which international trading companies can use to attain the above benefits? Well, the answer in EU is unanimously Cyprus.

Cyprus: An “Ideal” location to operate your international trading company from

One of the best jurisdictions, which can be used to effect the above corporate structuring, is Cyprus. This is simply because of the natural tax advantages Cyprus holds in addition to its EU and Eurozone member status. At a high level, following are some of the most important benefits and reasons for international trading companies to consider shifting to / starting in Cyprus as a base for their international operations.
-Corporate tax rate of 10% (Cyprus is the “Lowest-Tax” European Union jurisdiction)
-EU and Eurozone member (Respectable EU member state, not a traditional Tax Haven or Offshore Jurisdiction. This is very important consideration for long-term viability of the business)
-Cyprus is recognized as one of the best, investor-friendly tax system in European Union (EU)

-Tax Exemptions (No Tax) on:
Dividend Income
Profits from the sale of securities (shares, bonds, debentures etc)
Liquidation of the Cypriot Company
Profits (Capital Gains) on Permanent Establishment

- No Withholding taxes on payments of dividends, interest and royalties
- No debt-equity and thin capitalization rules
-Access to EU directives which helps further on taxation planning for trading with EU countries
-No Capital Gains Tax except for the real estate situated in Cyprus
-Absence of no strict Transfer pricing rules
-Vast network of Double Tax Treaties
-Interest deduction for borrowing costs provided
-Low Personal tax rate
-Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies
-Tax losses can be carried forward indefinitely

“Saving Tax” doesn't have to be taxing

A very popular and effective tax mitigation option, which International Trading Companies have is to move their tax bases to stable, low-tax jurisdictions. Popularity of low tax jurisdictions amongst the international trading companies is also due to the fact that it is relatively easy to implement highly tax efficient corporate structures for such companies. Let's have a quick look at it….

Trading between two companies involves one company buying the goods/services and the other company (seller) getting the payment in exchange. In ordinary cases (where, No low-tax jurisdiction alternatives have been used), the country which gets to charge the tax (corporate tax) on the profit made by the seller is the home country of the seller (i.e. where the seller is resident). But, by creating an intermediary company in a low-tax jurisdiction, it is possible to get the most of the profits (if not all) taxed in low-tax jurisdiction as opposed to the home country, thereby saving a substantial amount on the taxes otherwise payable in the home country. Such an intermediary company can be used to play a very effective role in any of the areas like sales, distribution or export-import to ensure that the above benefits are gained.

The exporters and importers alike could use such a corporate arrangement to ensure that the profits gained in exportation / importation (on eventual sales of the imported goods) is accumulated in the low-tax jurisdiction through the intermediary company. In fact, the intermediary company could be used to purchase directly from the producer or wholesaler and get the goods delivered to the buyer (customer). Moreover, in most cases, it is not a requirement to have the physical delivery of the goods in / through low-tax jurisdiction to gain the desired taxation benefits.

Are there any particular considerations for such corporate structures?

This corporate structuring has to be set up under certain rules and one of them is the arm's length principle, which is used (in effect) by many countries to ensure that the profits allocated to the low-tax jurisdictions are not unfairly large. The implementation of such rules varies from country to country and that's where certain countries, such as Cyprus (where there is absence of strict transfer pricing rules), are advantageous to operate from. In order to justify and rationalize the allocation of most of the profits to the low tax jurisdiction, specialist tax advice should be sought at the time of company incorporation to ensure that all the nuts and bolts are in place. With the aid of specialist tax advice, such a corporate structuring is certain to be very beneficial for trading companies in saving substantial amounts on tax.

“It is” but “Not all” about Tax saving

While the huge savings in taxes often provide an obvious advantage and incentive to move tax base to low-tax jurisdictions, there are many more strategic reasons and considerations, which also have to form a part of the decision making, such as:

1. Does this new base open a new market for your business, markets such as EU?
2. Does the new base offer your business the strategic locational advantage such as proximity to multiple trade hubs / continents?
3. Does the new base offer politically stable and economically strong (growth possibilities) region?
4. Does the new base have the advanced infrastructure for banking, telecom etc?
5. Will the new base enhance your company's brand and chances of securing more business?
6. Does the new base have favourable tax treaties with other countries?
7. Is the new base viewed with suspicion in the eyes of most of the countries? – Be careful with traditional tax havens / offshore jurisdictions. They may not be advantageous in the longer run.
8. Is the new base welcoming to the foreign companies?

So, what are the jurisdictions which international trading companies can use to attain the above benefits? Well, the answer in EU is unanimously Cyprus.

Cyprus: An “Ideal” location to operate your international trading company from

One of the best jurisdictions, which can be used to effect the above corporate structuring, is Cyprus. This is simply because of the natural tax advantages Cyprus holds in addition to its EU and Eurozone member status. At a high level, following are some of the most important benefits and reasons for international trading companies to consider shifting to / starting in Cyprus as a base for their international operations.
-Corporate tax rate of 10% (Cyprus is the “Lowest-Tax” European Union jurisdiction)
-EU and Eurozone member (Respectable EU member state, not a traditional Tax Haven or Offshore Jurisdiction. This is very important consideration for long-term viability of the business)
-Cyprus is recognized as one of the best, investor-friendly tax system in European Union (EU)

-Tax Exemptions (No Tax) on:
Dividend Income
Profits from the sale of securities (shares, bonds, debentures etc)
Liquidation of the Cypriot Company
Profits (Capital Gains) on Permanent Establishment

- No Withholding taxes on payments of dividends, interest and royalties
- No debt-equity and thin capitalization rules
-Access to EU directives which helps further on taxation planning for trading with EU countries
-No Capital Gains Tax except for the real estate situated in Cyprus
-Absence of no strict Transfer pricing rules
-Vast network of Double Tax Treaties
-Interest deduction for borrowing costs provided
-Low Personal tax rate
-Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies
-Tax losses can be carried forward indefinitely

Where to seek help from?

Prosperous Consultants, a well renowned specialist tax advisory firm can help you set up your company base in Cyprus. Prosperous Consultants also provide many other related services to make your transition completely hassle-free.

If you would like further information about reducing your corporate tax burden, please Contact us

“Saving Tax” doesn't have to be taxing

A very popular and effective tax mitigation option, which International Trading Companies have is to move their tax bases to stable, low-tax jurisdictions. Popularity of low tax jurisdictions amongst the international trading companies is also due to the fact that it is relatively easy to implement highly tax efficient corporate structures for such companies. Let's have a quick look at it….

Trading between two companies involves one company buying the goods/services and the other company (seller) getting the payment in exchange. In ordinary cases (where, No low-tax jurisdiction alternatives have been used), the country which gets to charge the tax (corporate tax) on the profit made by the seller is the home country of the seller (i.e. where the seller is resident). But, by creating an intermediary company in a low-tax jurisdiction, it is possible to get the most of the profits (if not all) taxed in low-tax jurisdiction as opposed to the home country, thereby saving a substantial amount on the taxes otherwise payable in the home country. Such an intermediary company can be used to play a very effective role in any of the areas like sales, distribution or export-import to ensure that the above benefits are gained.

The exporters and importers alike could use such a corporate arrangement to ensure that the profits gained in exportation / importation (on eventual sales of the imported goods) is accumulated in the low-tax jurisdiction through the intermediary company. In fact, the intermediary company could be used to purchase directly from the producer or wholesaler and get the goods delivered to the buyer (customer). Moreover, in most cases, it is not a requirement to have the physical delivery of the goods in / through low-tax jurisdiction to gain the desired taxation benefits.

Are there any particular considerations for such corporate structures?

This corporate structuring has to be set up under certain rules and one of them is the arm's length principle, which is used (in effect) by many countries to ensure that the profits allocated to the low-tax jurisdictions are not unfairly large. The implementation of such rules varies from country to country and that's where certain countries, such as Cyprus (where there is absence of strict transfer pricing rules), are advantageous to operate from. In order to justify and rationalize the allocation of most of the profits to the low tax jurisdiction, specialist tax advice should be sought at the time of company incorporation to ensure that all the nuts and bolts are in place. With the aid of specialist tax advice, such a corporate structuring is certain to be very beneficial for trading companies in saving substantial amounts on tax.

“It is” but “Not all” about Tax saving

While the huge savings in taxes often provide an obvious advantage and incentive to move tax base to low-tax jurisdictions, there are many more strategic reasons and considerations, which also have to form a part of the decision making, such as:

1. Does this new base open a new market for your business, markets such as EU?
2. Does the new base offer your business the strategic locational advantage such as proximity to multiple trade hubs / continents?
3. Does the new base offer politically stable and economically strong (growth possibilities) region?
4. Does the new base have the advanced infrastructure for banking, telecom etc?
5. Will the new base enhance your company's brand and chances of securing more business?
6. Does the new base have favourable tax treaties with other countries?
7. Is the new base viewed with suspicion in the eyes of most of the countries? – Be careful with traditional tax havens / offshore jurisdictions. They may not be advantageous in the longer run.
8. Is the new base welcoming to the foreign companies?

So, what are the jurisdictions which international trading companies can use to attain the above benefits? Well, the answer in EU is unanimously Cyprus.

Cyprus: An “Ideal” location to operate your international trading company from

One of the best jurisdictions, which can be used to effect the above corporate structuring, is Cyprus. This is simply because of the natural tax advantages Cyprus holds in addition to its EU and Eurozone member status. At a high level, following are some of the most important benefits and reasons for international trading companies to consider shifting to / starting in Cyprus as a base for their international operations.
-Corporate tax rate of 10% (Cyprus is the “Lowest-Tax” European Union jurisdiction)
-EU and Eurozone member (Respectable EU member state, not a traditional Tax Haven or Offshore Jurisdiction. This is very important consideration for long-term viability of the business)
-Cyprus is recognized as one of the best, investor-friendly tax system in European Union (EU)

-Tax Exemptions (No Tax) on:
Dividend Income
Profits from the sale of securities (shares, bonds, debentures etc)
Liquidation of the Cypriot Company
Profits (Capital Gains) on Permanent Establishment

- No Withholding taxes on payments of dividends, interest and royalties
- No debt-equity and thin capitalization rules
-Access to EU directives which helps further on taxation planning for trading with EU countries
-No Capital Gains Tax except for the real estate situated in Cyprus
-Absence of no strict Transfer pricing rules
-Vast network of Double Tax Treaties
-Interest deduction for borrowing costs provided
-Low Personal tax rate
-Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies
-Tax losses can be carried forward indefinitely

Where to seek help from?

Prosperous Consultants, a well renowned specialist tax advisory firm can help you set up your company base in Cyprus. Prosperous Consultants also provide many other related services to make your transition completely hassle-free.

If you would like further information about reducing your corporate tax burden, please contact us!

“Saving Tax” doesn't have to be taxing

A very popular and effective tax mitigation option, which International Trading Companies have is to move their tax bases to stable, low-tax jurisdictions. Popularity of low tax jurisdictions amongst the international trading companies is also due to the fact that it is relatively easy to implement highly tax efficient corporate structures for such companies. Let's have a quick look at it….

Trading between two companies involves one company buying the goods/services and the other company (seller) getting the payment in exchange. In ordinary cases (where, No low-tax jurisdiction alternatives have been used), the country which gets to charge the tax (corporate tax) on the profit made by the seller is the home country of the seller (i.e. where the seller is resident). But, by creating an intermediary company in a low-tax jurisdiction, it is possible to get the most of the profits (if not all) taxed in low-tax jurisdiction as opposed to the home country, thereby saving a substantial amount on the taxes otherwise payable in the home country. Such an intermediary company can be used to play a very effective role in any of the areas like sales, distribution or export-import to ensure that the above benefits are gained.

The exporters and importers alike could use such a corporate arrangement to ensure that the profits gained in exportation / importation (on eventual sales of the imported goods) is accumulated in the low-tax jurisdiction through the intermediary company. In fact, the intermediary company could be used to purchase directly from the producer or wholesaler and get the goods delivered to the buyer (customer). Moreover, in most cases, it is not a requirement to have the physical delivery of the goods in / through low-tax jurisdiction to gain the desired taxation benefits.

Are there any particular considerations for such corporate structures?

This corporate structuring has to be set up under certain rules and one of them is the arm's length principle, which is used (in effect) by many countries to ensure that the profits allocated to the low-tax jurisdictions are not unfairly large. The implementation of such rules varies from country to country and that's where certain countries, such as Cyprus (where there is absence of strict transfer pricing rules), are advantageous to operate from. In order to justify and rationalize the allocation of most of the profits to the low tax jurisdiction, specialist tax advice should be sought at the time of company incorporation to ensure that all the nuts and bolts are in place. With the aid of specialist tax advice, such a corporate structuring is certain to be very beneficial for trading companies in saving substantial amounts on tax.

“It is” but “Not all” about Tax saving

While the huge savings in taxes often provide an obvious advantage and incentive to move tax base to low-tax jurisdictions, there are many more strategic reasons and considerations, which also have to form a part of the decision making, such as:

1. Does this new base open a new market for your business, markets such as EU?
2. Does the new base offer your business the strategic locational advantage such as proximity to multiple trade hubs / continents?
3. Does the new base offer politically stable and economically strong (growth possibilities) region?
4. Does the new base have the advanced infrastructure for banking, telecom etc?
5. Will the new base enhance your company's brand and chances of securing more business?
6. Does the new base have favourable tax treaties with other countries?
7. Is the new base viewed with suspicion in the eyes of most of the countries? – Be careful with traditional tax havens / offshore jurisdictions. They may not be advantageous in the longer run.
8. Is the new base welcoming to the foreign companies?

So, what are the jurisdictions which international trading companies can use to attain the above benefits? Well, the answer in EU is unanimously Cyprus.

Cyprus: An “Ideal” location to operate your international trading company from

One of the best jurisdictions, which can be used to effect the above corporate structuring, is Cyprus. This is simply because of the natural tax advantages Cyprus holds in addition to its EU and Eurozone member status. At a high level, following are some of the most important benefits and reasons for international trading companies to consider shifting to / starting in Cyprus as a base for their international operations.
-Corporate tax rate of 10% (Cyprus is the “Lowest-Tax” European Union jurisdiction)
-EU and Eurozone member (Respectable EU member state, not a traditional Tax Haven or Offshore Jurisdiction. This is very important consideration for long-term viability of the business)
-Cyprus is recognized as one of the best, investor-friendly tax system in European Union (EU)

-Tax Exemptions (No Tax) on:
Dividend Income
Profits from the sale of securities (shares, bonds, debentures etc)
Liquidation of the Cypriot Company
Profits (Capital Gains) on Permanent Establishment

- No Withholding taxes on payments of dividends, interest and royalties
- No debt-equity and thin capitalization rules
-Access to EU directives which helps further on taxation planning for trading with EU countries
-No Capital Gains Tax except for the real estate situated in Cyprus
-Absence of no strict Transfer pricing rules
-Vast network of Double Tax Treaties
-Interest deduction for borrowing costs provided
-Low Personal tax rate
-Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies
-Tax losses can be carried forward indefinitely

Where to seek help from?

CCLOGIC.COM provides comprehensive information and help in order to incorporate your Cyprus Company!

A Cyprus Company can be registered for VAT (actually the rate is 15%) this is of the benefit for the owners and the companies business customers because they are able to deduct the VAT they have paid to your company from their local VAT amount they have to pay to the local VAT / Tax office. Further Cyprus has the lowest VAT and Tax within the European Union which is from a competition point of view a great advantage since you can offer your services and goods to a lower price than your competition in other EU countries can.

A Cyprus Company only pays 10% corporate TAX which is the lowest in the entire European Union, again from a competition point of view it is a great advantage since the company will be able to reinvest more money into the business activities or to the owners in order to be more profitable and to grow, then the competition in other EU countries.

A Cyprus Company don’t pay any tax on Interest or Dividends, means more profit to the owners, further it is allowed to make loans in a Cyprus company which is not allowed in almost any other EU company.

Cyprus has a Double Tax Agreement with the Seychelles which means the company has to pay tax in the Country of operation, so towards your clients it can look like it is a European Company they do business with but structured correctly it is a Seychelles company, so the operation has to be managed in the Seychelles which is properly not an issue to prove, since the tax rate in the Seychelles is 0% the corporation has no tax to be paid.

With a Cyprus Company the owners comply to European Laws which means more trust to your company compared to any Offshore jurisdiction like Panama, Belize, St. Kiits etc. – it also means that the Cyprus company avoid to be on different governments radar while doing legal business, this also towards the banks who have to transfer money to the bank from customers who bought a service or products from the company.

A Cyprus Company can help you to grow your wealth if structure right, no other country will offer you that benefit that’s why Cyprus is the most popular jurisdiction even in 2011 to do business.

A Cyprus Holding Company has a lot more to offer than just the above mentioned, for instant if the goal is to make huge profits but at the same time to achieve Asset Protection then a Cyprus Holding Company offer you all this, do you for instant know that it costs a lot of money to try to sue a Cyprus company for any reason or to try any debt collection? – No this is not known by many, but compared to for instant UK, Germany, Sweden or Denmark where you can get a court order for almost free in order to collect your debts then it costs a fortune for the creditor to collect those money. Also all asset’s in a Cyprus Holding company are “moveable” means you can if done right move your assets to another company so that if a creditor should penetrate the company in question there will be no assets.

A Cyprus Company can be structured by using Nominee Directors and Shareholders 100% anonym, that’s not possible in most other European Countries and one of the strongest benefits Cyprus has to offer.

Why do I need to be anonymous?
The reasons are many, it could be in a process to take over a competing company but where the real buyers want to stay anonymous to avoid any complications in the take over. It could as well be that the owners have a business running to 1 target group of industries as retailers but as well want to be Whole Sale for the competition, who would buy from a competitor if they know? – no one will so it can be of benefit to have the ownership of the Whole Sale company to be anonymous, in order to get the business from the competition. These are only a few reasons, as first mentioned there are many more.

Most important is that regardless what the purpose of the Cyprus Company is, you are always in front of your competition.

We hope you enjoy reading, stay tuned to the next publication.

Did you know that there is a Offshore Company Forum available where you can ask questions but as well read about others experience, issues and much more, forums are born to help the public, so use it this opportunity to learn more and be prepared to take out your competition or simply start a profitable business.

A holding company does not produce any goods or services of its own. Its entire purpose is owning shares in other companies. A holding company is used as a strategy for minimizing the risk of loss of assets, equity and finances.

A Cyprus Holding Company is able to enjoy a large list of legal and tax benefits that can keep more of its profits in the Company, which will allow it to grow at a faster rate. If the holding company is being used as a place to hold and store wealth then moving to a favourable tax regime, such as Cyprus, can allow you to grow your money faster as you are able to pay less tax on your profits.

Read more here

The regulations of carrying out business in Cyprus include having a number of business names that you intend to use to register your company. These names are sent to the offices of the registrar for searching of the register of company names. If the names are used, the government is kind enough to suggest a number of names that you can use but the company owner must consent to the use of these names. The business name serves as the company’s brand.

In addition to the business name, the Article and Memorandum of Association are also a requirement. This serves as an indicator of the business that the company has been registered. It shows the operations of a company as well as the management procedures. Depending on the size and type of company, other documents might be required. These include the minutes of the meetings held to discuss setting up a company in Cyprus. The letter given to the director at the time of appointment is also important. This is because most of the times the people who cause business downfalls are the directors as they are the decision makers.

The law in Cyprus requires every company to have a secretary. Their definition of secretary is an individual who spends time in the company premises at all working times. Such a person is required to maintain a record of the company transactions that occur daily. To ascertain all these requirements, the process of incorporating a company could take a week or more depending on the documents of the company that need vetting and the level of investment that a company plans to set up.

Before a company is incorporated, it must have achieved all the stipulated requirements. These include tax certificates and licenses. A huge percentage of the GDP in Cyprus accrues from the payment of licenses and tax. Due to this reason, every company in the country has to register at the income tax department so that they can be remitting tax on the incomes. The taxation rate is uniform for all companies. A trading license is issued for all the companies. With all these requirements, a company receives an official certificate that shows that it is incorporated and it can begin operations.

Another requirement for the incorporation of a company in Cyprus is the articles and memorandum of association. These documents give a clear outline of the objectives of a company, the management structure and how the business plans to conduct its activities. It outlines the duties of every shareholder in the company and ensures that there is a system followed in the company operations. For a company to be incorporated in Cyprus there must be a bank reference. This reference serves as security and assures the government that the company has a capacity of transacting in the range that they have stated in the articles of association.

Cyprus has set a standard share capital that all the companies should have before incorporation. The share capital stands at 10,000 shares that are issued at a minimum price of one Euro. The number of shareholders is not important but there must be at least one shareholder. This makes sure that there is a beneficiary of the company. Cyprus allows the incorporation of companies through agents. This is mainly for the foreign countries where they allow the investor company to register as a company but under the name of another company that already exists in Cyprus. These services are mainly offered for the people who prefer anonymity.

An important document that is required in the incorporation of a company in Cyprus is an affidavit that is issued after paying a certain amount in a court of law. This shows that the company’s owners are ready to work under the regulations of the state and that they will comply with all the company requirements. For foreign investors, Cyprus restricts the operation of financial, insurance and banking services in the country. This is done in protection of the country’s interests. Unlike other countries, it is not a requirement that a company should get a seal in Cyprus. However, some business titles must be consented to before they are registered. These are mainly related to the financial sector and other critical industries like healthcare and teaching.

Before incorporation, a company must register with the income tax department, which ensures that it remits its tax on income after every financial period.

In certain countries around the globe, there are taxes that are imposed on a persons net worth. This means that the greater an individual’s or company’s net worth, the higher the taxation. In certain cases, this usually leads to tax fraud as the individual or company may see this as an extreme form of taxation. In other cases, the individuals simply omit certain aspects of their wealth that is deemed taxable in order to avoid paying taxes. In Cyprus, this is eliminated because the taxation on ones net worth is non-existent in this country. This is definitely a huge incentive to both individuals as well as organizations, be they local or international. It should be noted, however, that this tax exemption only applies to real estate in Cyprus.

In Cyprus, the European rules on taxation apply. This is beneficial to the individual or company because one can take advantage of this double tax treaty available in Cyprus to reduce their payable taxes. Tax losses incurred by the company are also carried forward indefinitely and can be surrendered as group relief. This country also charges low duty for the establishment of companies within its jurisdiction. Interest deduction for borrowing costs is provided for all off shore companies. Unilateral tax relief is granted to all the companies within Cyprus. This is for all the foreign tax the company may have incurred while establishing itself in this country.

This is provided irrespective of the absence of the double tax treaty. There is also a very low expense fee for financial and professional service provision in this country compared to the charges in the European Union member countries. This applies for any charges from lawyers and or financial institutions that may have been used during this process or for any independent valuations that may have been done on behalf of the organization in Cyprus. This country also provides low personal tax rates that act as an added incentive for the individual opening any sort of company.

This taxation reaches a maximum of thirty percent (30%) for income over 20,000 Cypriot Euros. There are also low social insurance contributions that the individual is bound by law to pay to the government at regular intervals, as is the case in every other country in the world. This type of insurance is usually calculated at 6.3% of the individuals’ gross salary. All these tax incentives are both local and international and they allow for businesses in Cyprus to operate under a very conducive environment that is almost unrivalled in the European Union and indeed anywhere else in the world.