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<b><font size="+1">Cyprus Lawyers - Law Firm - Incorporation of Cyprus Offshore Companies - Administration, Management and Legal Services</font></b>
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<p><b><font size="+1">cyprus law , lawyers , advocates , law firms in cyprus , offshore companies, trusts , offshore , cyprus, cyprus cyprus.</font></b>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>International
Business Companies (IBC’s) are only liable to <b><i>4.25%</i></b> tax on
their income. Also such companies are not liable to capital gains tax (except
on gains arising from immovable property in Cyprus) and no withholding
or other taxes are chargeable on their dividends. In order for a company
to be classed as an IBC, the provisions of the Income Tax Laws must be
satisfied. The provisions provide that:</font></font></font>
<ul>
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<font face="Arial,Helvetica"><font color="#000040"><font size=-1>its shares
must belong directly or indirectly exclusively to aliens; and</font></font></font></li>
</ul>
<ul>
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<font face="Arial,Helvetica"><font color="#000040"><font size=-1>its income
must be derived from sources abroad.</font></font></font></li>
</ul>
<font face="Arial,Helvetica"><font color="#000040"><font size=-1>A branch
of a non-resident company is taxed at 4.25% if management and control is
based in Cyprus. Where management and control is based outside Cyprus,
branches of a non-resident company pay no tax.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>IBC’s
situated in Cyprus are required by the Central Bank of Cyprus to submit
to the Central Bank independent audited accounts. This is required in order
to facilitate the Bank in carrying out its function as a supervisory body.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>All
companies situated in Cyprus are required to maintain correct and proper
records of the companies assets and liabilities, sales and purchases of
stock and all monies received and disbursed by the company together with
details of related transactions.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Also,
companies with a share capital are required by law to submit an Annual
Return to the Registrar of Companies. Accordingly, the Return must contain
information relating to the company’s address, the amount of any mortgages,
details of company directors and secretary’s, matters relating to the issue,
discontinuance, forfeiture or surrender of shares, etc.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Residence
and work permits are required by all non-resident personnel of Cypriot
entities. Such residence and work permits are easily obtained by directors,
executives and managers, normally within one month of application. Employees
in administrative, clerical and non-executive positions may also obtain
such residence and work permits fairly easily, in situations where there
are no suitably qualified Cypriots.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>A foreign
employee of an IBC who is living and working in Cyprus is taxed at half
the normal income tax rate applicable. Foreign employees living and working
outside Cyprus pay tax at 10% of the normal tax rates. Where the remuneration
to a foreign employee living and working outside Cyprus is paid through
Cyprus, then no tax is paid at all.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Income
received from foreign money capital interest will attract no income tax
if imported into Cyprus and deposited with a bank operating in Cyprus.
Furthermore, interest earned on borrowed foreign money capital invested
in Cyprus may be exempt from tax, if, the Minister of Finance considers
it to contribute towards the economic development of Cyprus.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>With
regard to Capital Gains Tax, no gain is considered to arise where IBC’s
make a disposal of immovable property outside Cyprus. A gain is considered
to arise where a disposal is made of immovable property or of shares in
companies deriving value from immovable property in Cyprus. The current
rate of tax is 20%.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Transactions
carried out by IBC’s are considered to have been effected outside Cyprus.
As such, with the exception of local expenditure, IBC’s are exempt from
value added tax (VAT).</font></font></font>
<p><b><font face="Arial,Helvetica"><font color="#000040">Confidentiality</font></font></b>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Cyprus
IBC’s must have a registered office in Cyprus. They are usually structured
with nominee directors, secretary and shareholders whose details are placed
on public file. This type of structure guarantees total confidentiality
on Company records.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>The
beneficiary's details remain confidential and are not placed on public
file although they must be disclosed to the Central Bank of Cyprus. The
beneficiary may be a natural person or corporate body. Cyprus has strict
commercial secrecy laws and Central Bank employees are bound by law not
to divulge privileged information to any third party.</font></font></font>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>It
is through these confidentiality requirements that Cyprus companies enjoy
a greater international reputation amongst business persons than companies
in other jurisdictions.</font></font></font>
<p><b><font face="Arial,Helvetica"><font color="#000040">Shareholders</font></font></b>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>A minimum
of two shareholders are required and details appear on the public file
but anonymity can be retained by the use of nominee shareholders. Bank
references on the beneficial owners must be submitted to the Central Bank
of Cyprus but these details are protected by secrecy laws.</font></font></font>
<p><b><font face="Arial,Helvetica"><font color="#000040">Directors</font></font></b>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>A minimum
of one director is required and details appear on the public file but anonymity
can be retained by the use of third party directors.</font></font></font>
<p><b><font face="Arial,Helvetica"><font color="#000040">Time scale</font></font></b>
<p><font face="Arial,Helvetica"><font color="#000040"><font size=-1>Normally
it will take approximately 4-7 working days from the receipt of bank references
on the beneficial owners for incorporation to be achieved. Shelf companies
are available, but the requirement to provide bank references on the beneficial
owner’s means that such companies cannot be activated until references
have been received in Cyprus.</font></font></font>
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