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Founding of Offshore Companies in Cyprus

What is an offshore company?

The offshore companies are founded abroad, in countries with advantageous tax conditions. The main aim is to reduce the tax burden and - due to that - increase the net profit of the company. Some cost items considered as tax non-recognisable in the CR are commonly recognised in countries called tax havens. It is therefore advantageous to execute some activities through subsidiaries founded abroad.

We will provide for all technicalities and administrative acts, give you advice as to the best manner to use offshore business opportunities and then you will just flourish.

Advantages of Offshore Companies Founding

1. Income tax rates are significantly lower than in the CR.
2. Costs in the CR considered as tax non-recognisable may be tax recognisable abroad.
3. Double taxation elimination.
4. Due to different legal environment it is possible to arrange relationships between partners differentially than it is allowed by the commercial law in the CR.
5. Lower number of administrative acts.
6. Legal protection of the company assets from potential creditors.
7. Anonymity of ownership of offshore companies.
8. Protection of investors.

If you want to be helped with offshore company foundation and costs optimisation please write to offshore@dynamicmedia.cz or use our contact form.

Why Cyprus?

Cyprus is a country with relatively respectable and stable economic growth. It is an advanced country with good infrastructure and standard level of services.

• Official languages: Greek, Turkish, business sphere and state administration commonly use English
• Membership in EU: as from May 1, 2004
• Currency: originally the Cyprian pound (1 CYP = app. 44,- CZK). As from January 2008 use of EURO (EUR).
• Act on offshore business: Companies Law, Chapter 113
• Double taxation elimination with 40 countries including the CR
• Companies registered in Cyprus at which 100% shares are owned by foreigners are subject to 10% income tax
• Payment of basic fees is considered as deposition of the minimum authorised capital
• Wages of foreigners employed at offshore companies are subject to 0 - 20% taxation
• Offshore companies are not subject to any exchange control
• Ownership and activity of companies remain in anonymity
• If any shares of an offshore company registered in Cyprus are inherited they are not subject to the succession duty

Conditions for Offshore Companies With Registered Office in Cyprus

• Costs of offshore companies must only be settled from foreign sources
• Company may only be owned by a foreign entity
• All business and commercial activities must take place outside the Cyprus territory
• Offshore companies must not obtain any funds from any Cyprus sources
• Company must for an accounting period of 1 year hand over financial statements subject to an audit by local auditor and submit them along with statements on shareholders and statutory bodies to the Cyprus Central Bank
• An offshore company must have a fixed address in Cyprus and a Cyprus resident

We will provide for all technicalities and administrative acts, give you advice as to the best manner to use offshore business opportunities and then you will just flourish.

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