Benefits of Cyprus International Business Company (IBC) formation ...

The financial and professional services sector in Cyprus heavily revolves around the formation of international business companies (IBC), otherwise known as setting up or registering an offshore company. When 100% foreign-owned, a company formations in Cyprus was once referred to as an ?offshore company?. However, the expression International Business Company or Holding Company is preferred nowadays, due to the vagueness of the term offshore, plus the fact that all companies in Cyprus are now technically onshore.

Indeed, there are many benefits to a Cypriot registered company, such as with tax planning, international offshore banking, investments to the region and growth, as well as general business activities. Cyprus also has a very stable economy and political environment, together with excellent sector infrastructure. These key pros drive foreign interests in a Cypriot IBC set up and in many ways sustain the Cypriot economy ? a Cypriot registered company is compelled to use local professional services, upon formation, as well as ongoing?company maintenance.

A Cyprus company formation is an excellent, tax-efficient way to conduct legitimate international business, conforming to EU directives and on the OECD?s white list of jurisdictions which have substantially implemented the internationally-agreed standards for tax cooperation. Cyprus is also an ideal location to set up a company for investment to the EU, Europe, Russia and CIS, Middle East and Africa. Little wonder why Cyprus has become one of the most attractive locations for Limited and holding companies in the Europe (EU/EEA) and in fact throughout the world.

BENEFITS TO A CYPRIOT REGISTERED INTERNATIONAL BUSINESS COMPANY (IBC)

• Lowest corporate tax rate in the European Union at 10%
• Profit generated from ownership and dividend payments from other companies is totally tax free. Any royalty payments are totally tax free. Plus a host other tax benefits in deductions and exemptions
• No tax on capital gains on sale of companies. Profits from investments in other companies are tax-free
• No tax on capital gains on trading in listed securities
• No withholding tax. No tax on dividend payments
• Under the new ?Cyprus Tonnage Tax System? under certain conditions Ship Owning and Ship Management Companies pay no income tax but only ?Tonnage Tax?
• Freely transferable currency accounts (in any currency) can be kept both in Cyprus and abroad, and no exchange control restrictions
• Residence and employment permits for foreign employees and residence permits for their families can easily be obtained
• Now able to trade in Cyprus. As from 1st January, 2003, an offshore company (IBC) set up no longer has a separate taxation status, and is taxed according to the same principles as a regular company. IBCs are now allowed to trade inside Cyprus

For more information on how to start a Cyprus International Business Company (IBC) please contact, info@thefreedomnation.com

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