International Business Company Services

Cyprus has become one of the leading international business center in the world for carrying out international operations and activities.
This development has been the result of its expanding network of Double Tax Treaties, its generous tax concessions but also due to several commercial & business factors amongst which the most important are:

Advantages of Cyprus Companies
  • Membership of European Union as from 1 st May 2004
  • Strategic geographical location being at the cross-roads of Europe, Asia & Africa
  • High quality standards of professional services 
  • Excellent telecommunication system
  • Provision of professional services at competitive & reasonable prices
  • The procedures to set up an IBC are simple and the related costs low
  • Freedom from exchange control
  • Anonymity of the beneficial owners of a company and many more other reasons making Cyprus a very attractive place for many companies to base their operations in the island

For more information please refer to section under ‘Investment in Cyprus ,Analysis and Advice’.

What is an International Business Company(IBC)

An International Business company is essentially a legal entity owned by foreigners, registered in Cyprus but having operations and deriving it's income outside Cyprus. In the case that the shareholder of the IBC is a European Union resident then the IBC is allowed to carry out activities also within Cyprus.

Moreover, an IBC is allowed to maintain an office in Cyprus from where it can manage its operations

Also it is a simple procedure to register and set up a legal entity in Cyprus.

An IBC offers anonymity to the beneficial owner for the carrying out of the operations of the business and the making of investments.

Finally, Cyprus IBCs enjoy substantial tax benefits including the fact that Cyprus has the lowest corporation tax rate (10 %) in European Union and the nearby countries as well as a wide network of double tax treaties that Cyprus has signed with 35 countries.

Types of businesses that can be incorporated:

There are three forms of Businesses that can be incorporated in Cyprus:

  • a limited liability company, including a Cyprus Holding Company
  • a General or limited liability partnership
  • an International Branch of a foreign organization

Most International Business Companies are limited liability companies and only a small fraction of them, are partnerships or branches because in essence their legal status and financial liabilities are the same to those of the beneficial shareholders.

Services that we offer through our associates are:

  • Registration of a Cyprus International Business Company
  • Maintenance of accounting records
  • Budgets and management accounts preparation
  • Feasibility studies
  • VAT related services
  • Deal with the government authorities on your behalf
  • Preparation and submission of the annual audited Financial Statements
  • Operating bank accounts and executing payment orders
  • Provision of registered office address
  • Provision of Cyprus Nominee shareholders
  • Provision of Cyprus Nominee directors
  • Provision of Cyprus Nominee secretary
  • Personnel recruiting
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International Trusts

What is a trust

A trust is being established by an individual called the "settlor", and is a way by which a "person "either an individual or a company ("the trustee") agrees to hold property ("the trust property") for the benefit of another or others ("the beneficiaries") on certain terms and with certain powers as outlined in the "trust deed".
In other words the trustee has legal title to the trust assets and the beneficiary has beneficial title.

Governing law

International trusts are governed by the International Trusts law of Cyprus.

Necessary conditions in order to set up a trust:

  • the settlor is not a permanent resident in Cyprus
  • the trust property does not include any immovable property situated in Cyprus
  • at least one of the trustees is resident in Cyprus
    (It is important to point out for a tax planning point of view that a trustee can be a Cyprus International business company and even a partnership.)

Benefits relating to Cyprus International Trusts:

  • Exemption from income tax, capital gains tax or any other tax in Cyprus (provided that the property is located and income is derived outside Cyprus)
  • No reporting requirements in Cyprus
  • An International Trust may form a Cyprus International Business company and obtain the benefits available to them
  • A favorable legal system relating to International Trusts together with Cyprus key geographical location.
  • Dividends, interest, or royalties received by an international trust from a Cyprus International Business company are not taxable and not subject to withholding tax.
  • No inheritance tax in Cyprus
  • No exchange control restrictions
  • Gains on the disposal of assets of an International Trust are exempt from Capital Gains tax in Cyprus.
  • No estate duty on the assets
  • A foreigner creating a Cyprus International Trust when he retires to Cyprus will pay no taxes provided that the property is settled and the income earned is abroad, irrespective if he/she is even a beneficiary

Confidentiality and non-disclosure

Confidentiality is of the up most importance in setting up a trust and a Cyprus International Trust is advantageous in this respect as no information or documents will be disclosed by the Cyprus government or the Central Bank of Cyprus with respect to:

  • Settlor
  • Beneficiaries
  • Trustees
  • Accounts or property of the trust

However, the courts can order the disclosure of information or documents in criminal or civil cases if they are considered to be important for the legal case.

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Taxation and International Tax Planning

Due to the fact that Cyprus has one of the lowest corporate tax rate in the European Union and in the world, it has become an important jurisdiction for the incorporation of International business entities, establishing it as a significant international financial center.

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