Offshore 101

Learn everything you need to know to start an offshore company in Cyprus.


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Four Most Popular Types Of Cyprus Companies

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Cyprus Offshore Company, the term recently substituted by Cyprus International Business Company, is a separate legal entity.  The most commonly used form is private Limited Liability Company.  Under this framework, there are many sub structures in which you might establish your company. Read on to learn which Cyprus  company structure best fits your needs.

Cyprus Holding Company
A Cyprus Holding Company is a company or firm that owns other companies’ outstanding stock. Typically, a holding company doesn’t produce its own goods or services, but rather owns shares of other companies. Some benefits of a holding company include asset protection, receiving dividends from operating companies, distribution of profits to shareholders and reinvestment of capital into new projects, among other advantages.

Cyprus Financing Company
Using Cyprus’s extensive double tax treaty network, a Cyprus Financing Company provides subsidiaries interest bearing loans. The interest is tax deductible in the operating location and tax free in the recipient jurisdiction. Remaining margins are subject to a 10 percent tax. A Cyprus Financing Company can be a lowly taxed onshore company, or an offshore company, not liable to any taxation over its income.

Cyprus Trading Company
A Cyprus Trading Company can be used for the invoicing and re-invoicing of goods and services, as well as for the receipt of trading commissions, from any country to any destination. It is also used for transit trade from bonded warehouses, bonded factories and the free trade zones.

Cyprus Royalty Company
Those who receive property rights royalties might favor a Cyprus Royalty Company, as income from royalties, or royalty routing, is taxed at the low rate of 10 percent. The Cyprus treaty network and/or EU Interest and Royalties Directive provides that royalty payments are received in Cyprus with either reduced or no withholding tax. Tax withheld from the royalties received is available as a tax credit against the Cyprus corporation tax on the royalty income.

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