Types of offshore entities

Limited companies

The registration and regulation procedure for offshore companies is governed by the Central Bank of Cyprus, which issues permissions for the registration of offshore entities in Cyprus.

Cyprus law requires all enterprises to register with the Registrar of Companies, and the Exchange Control Law provides that non-residents require the prior approval of the Central Bank in order to acquire shares in business entities to be registered in Cyprus.

The conditions for the granting of the permission are as follows:-

·         The business shall deal with activities outside Cyprus.

·         The ownership shall at all times be held beneficially by non residents.

·         All financing shall be obtained from external sources.

·         All local expenses shall be met from funds from external sources.

·         Annual audited accounts and other required information shall be submitted regularly to the Central Bank.

·         The paid up share capital of the company shall be at least C£1.000, or C£10.000 if the company is to maintained an office in Cyprus.

·         On obtaining permission from the Central Bank the company shall be registered with the Registrar of Companies under the Companies Law.

The information which all companies must file with the Registrar of Companies for incorporation is listed below:-

·         Printed Memorandum and Articles of Association.

·         Notarised declaration of compliance with the laws.

·         Address of the company's registered office.

·         Names, addresses and occupation of company directors and secretary.

·         Annual accounts for income tax purposes shall be certified by accountants practising in the Republic and who are duly authorised to do so by the Minister of Finance.

There are many types of offshore companies that have already been registered in Cyprus. The most important types relate to finance, holding and investment companies, offshore banks, offshore captive insurance, shipping, publishing, construction and engineering, trading, recruitment, trust and fund management companies and consultancy agencies.

Partnerships

The procedure for registering an offshore partnership in Cyprus is the same as that required for registering an offshore company. The procedure is simple and is effected with the submission to the Registrar of the name of the partnership, its duration, objectives and the names and addresses of the partners and their authority to sign on behalf of the partnership.

Offshore partnerships and partners have the advantage of being exempt from taxation of profits. Because of the disadvantage of the partners not enjoying limited liability this type of offshore entity is not preferred.

Branches

The registration procedure is the same as that followed for the companies. Within one month of the establishment of the branch, documents must be filed with the Registrar of Companies showing the name and address of at least one authorised person resident in Cyprus, particulars of the secretary and directors and a certified copy of the Charter, Memorandum and Articles of Association (in Greek).

This type of offshore entity is favoured by the international companies as a base for directing their activities in the region. They are also exempt from taxation if their management and control is outside Cyprus. If this is exercised from Cyprus, then tax is payable at the rate of 10%

CYPRUS - The Ideal Offshore Centre

Types of offshore entities

Double Tax Treaties in Cyprus

SHIPPING IN CYPRUS

Offshore Trusts in Cyprus

Offshore Banking, Captive Insurance and Other Types of Offshore Entities in Cyprus

Offshore Company Registration Requirements 

How to Apply for the Formation of an Offshore Company in Cyprus.