If you are seeking for an international tax solution or an offshore tax shelter, Cyprus company formation may be the right process to review.

If you are seeking for an international tax solution or an offshore tax shelter, Cyprus company formation may be the right process to review. Cyprus although a member to EU and a jurisdiction generally considered onshore rather than offshore, still offers compelling offshore advantages. These offshore advantages, propelled Cyprus international business community to grow exponentially and Cyprus company formation to become a favorite tax planning solution. The high standard of Cyprus legal services and Cyprus fiduciary services providers form integral part of the success of the jurisdiction.

Cyprus, situated in the eastern Mediterranean, was always part of the tax planning sheets, but after accession of the island to the European Union and the adoption of the Euro, its use became more relevant as an international business centre, rather than a cheap tax shelter. Contrary to such isolated offshore destinations, usualy black listed in most countries, Cyprus has a network of 45 treaties for the avoidance of double tax, which together with the full implementation of all EU common market directives make Cyprus the most networked low tax jurisdiction in the world. Cyprus maintains the lowest corporate tax rate in European Union at just 10% on profits.The real “offshore benefits” though come with proper advice on structuring, utilizing the blanket tax exemptions offered for international transactions, where the effective tax for specific structure might be as low as 0%.

As an example, one of the property investors favourite structures is the Cyprus Property Investment Company. The Cyprus Property Investment company is used as the vehicle for investing in property taking advantage of some of the exemptions under Cyprus tax law but also from the use of double tax treaties. Utilizing such exemptions and treaty clauses the Property Investment is shielded against capital gains tax (which in Cyprus is exempted for foreign property) and in some occasion inheritance or other property taxes such as stamp duty. The use of Cyprus company formation and Cyprus company administration for Property Investment all over the world is growing among serious property investors. The main facilitators on the island for Cyprus company registration are Cyprus law firms.

The Cyprus law firm instructed will usually provide Cyprus company administration services to complement the registration and advise and provide the smooth operation of the Cyprus company for the years to come. Law firms in Cyprus also provide Cyprus fiduciary services to complement Cyprus company formation and will include the provision of nominee or trustt shareholders, the setting up and maintenance of trust and even the provision of a bank signatory. Tax or Structuring advice and other ad hoc legal services supplement the usual offering to an international investor by the instructed law frim.

Certain aspects relating to Cyprus company registration needs to be thoroughly reviewed and understood by the interested investor before or after incorporation. As an example, one aspect that should be reviewed, would be the accounting, audit and reporting of the financial affairs of the Cyprus company. In general the accounting, audit and reporting in Cyprus is an easy task and most of the Cyprus law firms offering Cyprus company administration, will also package together the provision of such services. One such provider is LLPO Law Firm and through our Cyprus accounting and audit services we arrange the appointment of auditor from the outset to allow smooth operations of the company. The requirements and the process of how these services will be provided are usually explained during the Cyprus company formation process.

LLPO Law Firm is a Cyprus law firm offering Cyprus company registration and administration services for 13 years. We are Headquartered in Nicosia, Cyprus but have offices in London, UK, Athens, Greece and Bucharest, Romania. Our Cyprus fiduciary services and offshore tax services are provided as turn key solution to our clients, making sure to maintain the highest possible standards and adding value to our clients’ Cyprus company incorporation.

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Michael Ioannides is the author of this article on cyprus company registration.
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