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Cyprus is the third largest island on the Mediterranean Sea and is actually at the crossroad between Asia, Africa and Europe. It is a purely independent state with its own legal and constitutional systems which makes offshore company formation easier and thus promoting foreign investment in the country. An offshore company can actually be incorporated in Cyprus after a period of three weeks after registration.

During offshore company formation, there are certain factors that should be considered before settling on the best place to put up the business. The most important is the taxation laws that are applicable in a country. The level of taxation will determine the amounts that will be available for reinvestment. Therefore there’s need to go for a tax system with lowest rates of corporation tax.

Corporate tax on income is the main tax on offshore companies and it currently stands at 10% of the declared profits. Other companies such as maritime management companies are taxed at 4.25% while shipping companies are subject to no taxation at all. But the scenario has not always been like this as prior to the year 2003, all offshore companies and the foreign companies with their subsidiaries in Cyprus were taxed at 4.25% of the total profits. For a foreign company or its branches to be liable for this tax, the management and control should be in Cyprus. However, offshore companies that were formed before 2002 had the option of submitting taxes subject to a 4.5% rate but this benefit was scrapped off in the year 2006. 

Dividend income received from foreign investment and royalties received from assets abroad are exempt from withholding tax. Actually no taxes are paid for any profits made from sale of securities. Cyprus has also signed many double tax treaties that ensure that no company will be taxed more than once on its income.

Other provisions in the offshore company tax laws in Cyprus are that various offshore companies can merge without any tax consequences. This is regardless of the reason for the merger whether as a take-over bid or for purposes of reorganization. This provision encourages better performance by the smaller companies that may not have been able to operate at full potential due to some constraints. Merging encourages the offshore companies to take full advantage of the economies of scale.

A unilateral tax relief is accorded to all Cypriot companies including the offshore companies due to any foreign tax suffered even if the double tax treaty is not applicable. Similarly/ when a Cyprus offshore company incurs tax losses, they will be indefinitely carried forward or be surrendered as group relief.

Currently Cyprus has over 120,000 companies of which many are offshore companies. The reason for this is not only the convenient and hassle free offshore company formation process but also the fact that Cyprus offshore tax rates are so far the lowest in the European Union. This means that the Cyprus is probably the best place to invest in when venturing into the offshore business.

Offshore Company Formation and Offshore Bank Account (C) 2009 – CCLOGIC.COM – Register your Offshore Company today.

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When deciding to set up business operations, it can be extremely hard to find the right information which will allow a business to register an offshore company. Of course, all the advantages of setting up a company in another company are generally easy to come across, but try and find the rules and regulations and that is another story! What most people don’t realize is that most countries have hidden laws and restrictions, which can restrict companies trading operations. Like any process there will be plenty people offering it as a service. Companies specializing in forming companies overseas will make the whole process not only quicker, but a lot less stressful.

Forming a company can be an extremely hassle free and inexpensive process. In fact, many companies will be able to provide the service from as little has 1,300 Euros, and in some cases even cheaper. This means that while over the last few years it has been extremely hard to register an offshore company, it’s now an extremely simple process. It is a simple case of speaking to a service provider, waiting for documents to be sent via Fedex and sitting back, waiting for the company to be formed.

Of course, there are various other things that are attached to registering an offshore company. Each company will most likely need a bank account, which does bring a few complications along with it. The service provider who is helping set up the company will need a copy of the proposers passport, utility bills (English and no older than 3 months). Along side this, most service providers will ask that the proposer provides a reference letter from somewhere like their current banking facility, a Lawyer or other professional.

There are a range of benefits that will come from making the decision to register a offshore company. Some may feel less pressured due to trading privately, as there business operations are frowned on in some companies. Some may feel huge amounts of financial pressure relieved as the tax laws in the offshore company they have set up in are extremely low. What ever the reason for an individual setting up a company in an offshore location, it is always advisable to seek expert advice before hand, to ensure the process goes through smoothly.

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It seems a more common occurrence that people are choosing to start their own business, than pursue a career and becoming formally educated. There is definitely nothing wrong with starting company without formal qualifications, in fact, some of the most successful businessmen/women don’t actually hold any formal qualifications.

Starting a company in a native country is the usual way to go about things, but there isn’t anything holding individuals back from setting up overseas. There are various complications when setting up overseas, most of which are usually taken care of by a company specializing in offshore company formation.

The laws in other countries may be quite specific. Whilst many try to set up on their own, it is more than advisable to consult professionals. Professionals specializing in the field are likely to know the ins and outs, what can be achieved and realistically, what can’t.

I have heard individuals talking about an IBC license, what is it, and do I need one?

Whilst we can’t delve into major detail in this article, there are a few key points that need to be researched when forming a company overseas. Individuals may have to apply for certain licenses. At the moment the most common license that needs to be applied for is the IBC license. Researching the IBC license may seem extremely complicated. Again, this is where a company specializing in offshore company formation is likely to make an individuals life a lot easier. Not only will they save individuals time, but it is likely they’ll be able to identify the most cost effective way of forming their company.

An IBC license allows a great deal of flexibility for a business owner. Whilst it means that the business can operate in countries that are not their native, it does offer other advantages. Just because a company is trading in a non-native country, doesn’t mean that the business owner needs to actually live there. For instance, a business owner born in England, could operate a business in India, but wouldn’t have to actually live there.

How can a business be run without an owner?

Just like business owners employ people to package products, write articles or manage certain departments, they can assign staff to run their company. Offshore company formation laws mean that business owners can recruit a manager or agent to run there company.

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Fig.1 - Offshore Company Formation with nominee shareholder and director

The benefits from an Offshore Company Formation and the opening of an offshore bank account are many, and if done right it can give the maximum tax savings, privacy and assets protection and anonymity.

Many European countries have strict regulations on how you can manage your LTD or other limited company form; many entrepreneurs are struckeling in the effort to managing and survive of their company.

With an Offshore Company in countries like Belize, BVI (British Virgin Islands), Cyprus or the Seychelles you will have much broader possibilities to archive your goals to compete towards the competition in your business fields.

The mother company of an offshore company can for instant register a company in a European country, if their daughter company is obtaining a loan of a certain amount of money and the EU Company can now set off the interest in the annual report, saves taxes. This method is widely known by business professionals and used by many located in tax heavy countries. It might look unethical to some, but not less it is legal.

Taxation of instant income in a company can also be almost eliminated if the company is located in an offshore jurisdiction and the activities are taking place abroad in an offshore company.

An example of this is:

Our point of departure is five people which work as teachers on a local school, but which in their spare time have visited courses as masseurs and which are now educated to perform this as a work and by that make some extra income. The way they work is by visiting different companies around offering their services which are massage to the employees, once finished they leave and go to the next company. The business activity they place in an offshore company which also the one is invoicing the different companies they visit. In this way they don’t have a static address or office from where the work is performed which makes the entire business model not to be considered as a local business, now this is a foreign business and is not subject to any tax in the local country. Important to note here is that if they take a portion of the net profit from the Offshore company for them self it is subject to personal income tax.

In the above example, the money is going straight into the Offshore Company without any tax paid!

The important part is that the Offshore Company formation takes place correctly and you will need to have a professional offshore company formation agency to help.  For the tax issue in the above mentioned example and in any other case it is important to mention that you will need a Nominee Shareholder and Nominee Director which can be locals or foreigners, but the nominee service is the key here. See also the Fig.1 on this page for an illustration of the correct incorporation.

CCLOGIC LLC is providing offshore company formation in, Belize, BVI, Cyprus and the Seychelles and can beside the offshore company formation also help with the formation of Trusts and the opening of offshore bank accounts, we have been serving clients worldwide to archive their goals and this for many years.

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When considering entering into any type of Investment you should consider having an Offshore Company for instant in Belize, BVI, Cyprus or Seychelles to execute the investment. In the mentioned offshore jurisdictions a company don’t have to pay tax if the company is registered as Offshore International Business Company (IBC), many private investors all around the world have already explored the great advantages a Offshore Company which purpose is to make medium to large investments can give.

An Offshore Company Formation isn’t any difficult and can take place within a few weeks; the most important is to have a good and solid offshore bank available where the offshore company can open a business bank account for the purpose of Investment, Forex Trading and other banking activities.

Beside the tax advantages also the privacy and security is a factor which let many investors and business people in general enter into an offshore company formation. An Offshore Company which is duly incorporated in some of the above mentioned countries gives the beneficial owner a 100% anonymity and protections against liabilities and creditors.  Even if the investment is considered high risk then a offshore company has its advantages.

For active Investors or business which are growing fast it is crucial to be agile and to extend the activities of the operation as it grows, with an Offshore Company in the top it is easy to register new companies in other places of the World without to consider any tax or trading regulations which could stop or make it even difficult to expand.

Further to the Online Investment opportunities you also find investments in property abroad from where you are resident. Often huge TAX implications are the result of such investments which can be avoid if the offshore company formation has taken place before the investment is executed. For property investments we recommend to have a Offshore Trust in Cyprus to execute the deal or at least to have the Trust in Cyprus to have to register a Offshore company throughout the investment is made.

Typically Europeans get in troubles if they even through some regular European Company have made any property investment abroad, the taxation of the beneficial owner is guaranteed and often this are at a taxation rate in the range of 10 to 20% of the total investment, this is annually. If the property investment is made through an Offshore Company for instant in Belize, BVI, Cyprus or the Seychelles those tax’s can be avoid!

CCLOGIC LLC has specialized in the Offshore Company Formation and Offshore Trust Formation in the major offshore jurisdictions all around the world, we operate through secured locations and never keep any records. By many years we have served our clients in the opening of Offshore Bank Accounts for almost any purpose and in the registration and duly incorporation of Offshore Companies in Belize, BVI, Cyprus and the Seychelles.

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When you consider registering an offshore company in any offshore jurisdictions and you main income comes from your online business, you will quickly find it difficult to open a offshore bank account and to find any payment services provider which will accept your business for credit card processing.

An Offshore company is often considered as High Risk just because of its location in an Offshore jurisdiction, therefore it is important when you start your incorporation of an offshore company to make sure the offshore company formation agency is able to help you to open both a offshore bank account and a merchant account (to accept credit card payments) for the company.

You will need to register your offshore company in an offshore jurisdiction which gives you the privacy and asset protection your are looking for but you will also need to have the offshore company formation to take place in an offshore jurisdiction which enables you to open the bank account and merchant, or you will need to have the offshore company to register a new company within a jurisdiction where you are not limited by any bank. Offshore jurisdictions like Panama, Belize, Seychelles and British Virgin Islands are not good jurisdictions when it comes to a merchant account, you will need to have your offshore company in for instant Cyprus. With a Cyprus Offshore Company you will have access to a large number of banking services and offshore / onshore banks. With a Cyprus offshore company it is possible to keep the privacy and asset protection you seek but still have all the possibilities to trade online.

As mentioned there are two ways you can establish your offshore company structure if the main purpose is to trade online. One is to have a offshore holding company structure where the Holding company is located in an offshore jurisdiction which gives you maximum asset protection and privacy, then have the offshore holding company to register another offshore company in for instant Cyprus (or any other European Country) by choosing Cyprus you will have a 100% protected offshore company setup. A good alternative could be to have your Onshore company (any company located in an non offshore jurisdiction) to register a offshore company in Cyprus, that would still protect your privacy and assets and at the same time not limit your possibilities.

CCLOGIC LLC is an offshore company formation agency service which provides clients worldwide with incorporation services of offshore companies in several offshore jurisdictions like the Seychelles, Belize, BVI and Cyprus, furthermore we have specialized our self through many years of experience in this field in the opening of offshore bank accounts and merchant accounts, our company is a official introducer for the major banks in Cyprus.

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If you are planning to register a Offshore company in any certain country you will need to make sure that the jurisdiction of your choice don’t has any OECD agreement in regards to exchange tax information or you will need to make your offshore company formation completely legal and still gain tax benefits from it.

The first choice is to have a legal offshore company formation to take place; even if you have to pay tax in your home country then it gives you better possibilities to still legally save taxes and to protect your assets.

While the time is moving on and more and more offshore countries agree to the OECDS exchange of tax information in the battle to fight tax fraud, the focus from a business owner’s perspective should be on how to protect assets if things go wrong and how to save tax by planning the Offshore Company structure. As we believe, then in a few years almost any reliable country which today is considered as an offshore jurisdiction with secrecy and where it is possible to pay cero tax are gone.

If I can’t avoid to pay tax why should I go for an Offshore company Formation?

There are countless of answers to this question and you will need to consult a tax advisor to get the main reasons, managing a legal business which generates a good income and which is located in a high tax country will leave you with less net profit as if this company was owned by a Offshore Company. There are that many regulations towards companies in Europe that for a normal human being which not has an MBA in Tax regulations will stuck, with an Offshore Company things can be made less complicated and you can legally save min. 50% of the TAX you would be paying if you didn’t registered an Offshore Company (which will act as holding Company).

Did you know?

An offshore Company registered as an IBC in an offshore jurisdiction do not pay tax in the country of incorporation.

An Offshore Company which is registered in an offshore jurisdiction don’t need to have owned any shares for a certain number of years to get the dividend tax free.

An Offshore Company which is registered in an offshore jurisdiction has 100% assets protection which can protect entrepreneurs from huge losses and penalties.

If you register an Offshore Company in an offshore jurisdiction you can pay up the share capital to that company and legally make loans in that company to yourself, this is strictly prohibited in many European countries.  Even if you don’t pay up the share capital but make profit you can take loans.

CCLOGIC LLC provides professional and reliable Offshore company Formation and the opening of Offshore Bank Accounts in many offshore jurisdictions, please visit our website for more information.

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I have been looking into the Offshore Company Formation in Belize, Cyprus and Seychelles, but I can really not figure out why I should go for an offshore company formation in one of those countries or maybe should I incorporate in all of these offshore jurisdictions?

My business case is the following; I have been selling Electronic devices like IPods, Computers, Iphones and such things and have been very successful now for many years. During the years I have been busy and just paid the Company Tax and Income Tax I must as everyone else have.

For just a few weeks ago I came to read an article on the local papers where they described how it was possible to setup an offshore company structure and by doing so, save taxes and also protect all the assets which have been build up and earned during the years.

Now I wonder what would happened if I don’t go with an Offshore Company Formation and due to the financial crisis raging will lose my business, would I really have something left over once the creditors have been there even if it is a LTD or LLC in my local country? Or would I have lost everything in one shot?

I don’t mind to pay TAX as long as it is reasonable, to pay tax both for my company and personal tax is starting to annoying me, since it is itself at the moment very difficult to compete with the competition, so now I’m investigation all aspects of the Offshore Company Formation to be prepared, just in case.

Above is what we found on a forum and I personally find it very interesting to read since this must be some consideration every business man or Investor should do.

Now I will quickly try to explain just 1 option here, the possibilities are many and we don’t claim here that the below will be the only option but will rather advice to contact some professionals which have the experience and the knowledge to make any advice on this area, typically this is a registered Auditor or Lawyer which can help.

Now to the solution for the proper Offshore company Formation and company structure.

If above hypothetical case is what we look at, then the first step would be to incorporate a offshore company in one of the following offshore jurisdictions, Belize, BVI or Seychelles, those countries offer the best possibility for anonymous company formation, now when registered properly (I will not go into details here how it is done), we will on behalf of the above company register a company in Cyprus which we only will use to conduct business with. The Cyprus Company will be registered with Nominee Shareholders and Directors as foreigners and we will not reveal our self as beneficial owner since it will be the other offshore company which will own the company.  Now we would suggest to become a Cyprus Bank Account for this company (which is easy to become) and if needed a Merchant Account (which also is easy since it is part of the EU)

Now you will have the perfect solution for your issue and no one will be able to control how much TAX you will have to pay, no creditor will be able to access your assets and as an Investor you will be fully legit to invest in any Stocks, Company and even conduct Forex Trading as a legit company.

Contact CCLOGIC LLC for more information : www.cclogic.com

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If it is the first time you considering to open an Offshore Company or to take your business offshore, then you properly already ran into a lot of questions, like where can I find a reliable company which will do the Offshore company Formation for me, and which country to go for.

The first you need to consider when you want to take your business offshore, is, what the goals are. We can already now see that most people form an offshore company while they are doing a good amount of money with their online business.

 So next is, what type of business are you doing is it offline- or online business, if it is online business and you are doing well we highly recommend you to incorporate an offshore company for instant in Cyprus. The day to day trading is much easier with an offshore company then with a regular company or even as a sole trader. Also the most important is, you will safe TAX, have a good portion of assets protection and you can concentrate about your business and not authorities which ran into your doors to punish you with VAT, TAX and book keeping questions.

To run an Online business is difficult since the competition is enormous and you need to keep track on your traffic, Google ranking and a lot other stuff to keep your business going. You do not need also to have the hassle to keep track on TAX and VAT issues. With an Offshore Company in Cyprus you will have all the benefits as a regular business and company formation, and you will find it way easier to manage your business once you get your Offshore Company ready.

For offline business it is still a good idea to go offshore, the benefits are many and just to mention a few, then an Offshore Company as an holding company can be of great tax advantages and assets protection instrument. Furthermore if you form an offshore company in Cyprus you will still have a 100% legitimate business and which is within the European Union.

CCLOGIC.COM provides reliable and secure Offshore Company Formation in Cyprus and also have a wide range of other Offshore services available, like offshore bank accounts, accounting services and legal advisors available.