Whether you are a Cypriot or a foreigner, an individual or an organisation, you can now start your own offshore company or International Business Company (IBC) in the country without much hustle.
Let’s take a look at some Cyprus Offshore Companies requirements that are needed to establish such a company in Cyprus.
General Requirements
No matter who is trying to form an offshore company, they have to meet some conditions set up by the country that are as follows.
— The owners should list the company's name with the Trade Register of the country
— The business owners must prepare all the documents that are needed to form an offshore company
— These owners need to notarize the documents prepared by them
— The owners need to meet the shareholders' requirements. The minimum requirement of shareholders for an offshore company is one whereas the maximum number is fifty
— Even though the main operations of the offshore company will take place outside the country, the company is required to have one legal address in the country as well.
The Management Requirement
There are no special management for Cyprus Offshore Companies that an offshore company needs to meet. They are almost the same as any other local company.
The rules state that the offshore company needs to have one director whether of Cypriot or any other nationality. The owners need to disclose about the director’s residency while registering them with the registrar. In case the director is located offshore, the country even provides an option to appoint a nominee director.
Apart from the director, the offshore company must have a secretary as well. While there is no such requirement for the director to be of Cyprus nationality, the secretary needs to be a Cypriot resident only.
The Shareholders’ Requirement
Although the offshore company needs to fulfil some conditions, there are no such restrictions on the shareholders of the company. The country even provides the shareholders with the option to stay anonymous by getting nominee shareholders in their name. In this way, the original shareholders can maintain their anonymity. But, the country requires the offshore company to reveal to the Central Bank the details of these anonymous shareholders.
Other Requirement
Minimum Share Requirement
While other countries do have a minimum share capital requirement for forming up a company there, you will be surprised to know that Cyprus has no such rule.
Audit Requirements
An offshore company needs to have its financial accounts audited annually and presented to the revenue department.
Company Meetings Requirement
Cyprus Offshore Companies must hold regular company meetings. But, these meetings can take place in any part of the world.
Tip: Cyprus has an Investment programme that provides citizenships to individuals that invest in the country and are willing to do business around. Find more information here.