More and more Polish entrepreneurs and businesspeople are setting up business structures involving Cyprus companies.

As a full member of the EU, Cyprus tax and legal systems offer many advantages and solutions when compared to other offshore jurisdictions either in side or outside of the EU.  Cyprus offers great opportunities for both individual and company investors who can either benefit from its enormously efficient tax system or hide behind trust agreements in Cyprus and the British Virgin Islands (BVI).

Professional planning and advice can help ensure taxes and expenses are kept to a minimum whilst minimising risks.

Corporate Tax
At 10 %, the corporate tax on trading profits of Cyprus resident companies are among the lowest in the EU.

Accounting is on an accrual basis (which means that you can deduct them even if they have not been paid for) and Cyprus tax authorities have a flexible approach to the treatment of tax deductible expenses thus ensuring the tax base is efficiently managed.

A major advantage of the Cyprus tax system is the exemption of dividends received from subsidiaries. One could claim that the same benefits arise from the Parent-Subsidiary Directive, but tax exemption in Cyprus is wider and does not provide for any time limitations with respect to the holding of shares. Moreover, to apply this exemption the Cypriot company only needs a minimum 1 percent stake in the share capital of the subsidiary.

On top of that there are no thin capitalization rules or withholding taxes on payments to non-resident persons (individuals or companies) in respect of dividends and interest. And there are preferential rules regarding the carrying forward of losses and the unilateral tax credit given in Cyprus for taxes withheld or paid in other countries where there is no Double Tax Treaty in force.

Capital Gains Tax
Capital gains tax exemption is commonly held to be the biggest advantage of the Cypriot tax system. In short, any profit generated on the disposal of shares in subsidiaries is not subject to taxation in Cyprus. Moreover, in contrast to Dutch tax law for instance, there are no special conditions to fulfill to be able to benefit from the exemption.

No tax holding structures through Cyprus
In some countries the tax system allows for the sheltering or deferring of certain types of income by establishing companies in no-tax jurisdictions, for example the British Virgin Islands, the Cayman Islands and the Bahamas. The most common reason for setting up a no-tax company is that this company can act as an intermediary between a Cypriot company and a contractor, reducing income taxes in one-time transactions or in regular holding structures. The profit generated by such an intermediary can subsequently be transferred tax free to a Cypriot company in the form of a dividend.

Trust structures
Trust or foundation structures are commonly used for the top entity in a private or corporate investment holding structure. Shareholders in major companies worldwide, including in Poland, are hidden behind nominee shareholders. Beneficiaries run the company business, acting through their trusted legal advisors providing instructions to local lawyers and executives in Cypriot companies.

What is in it for Polish entrepreneurs?
The Cypriot tax system and the wording of the Double Tax Treaty between Poland and Cyprus allow for significant optimization of the tax burden resulting from operations. Based upon my experience, Polish investors are lured to business structures involving Cyprus by the following: (i) capital tax exemption for share purchase transactions, (ii) tax sparing on dividends, and (iii) preferential tax treatment of directors’ fees.

On the other hand, year on year there are increasing numbers of both corporate and individual investors who would like to remain unrevealed and who decide to conduct their operations through new business entities for transparency and tax optimization purposes. In light of the flexibility of the common law system in Cyprus, one can easily enter into transactions with only low-level local requirements as to form or content. No wonder doing business in Poland through Cyprus is becoming popular and creating new opportunities for trustworthy and business-oriented lawyers 

It is charged at the rates shown in the table below:

Note:

(1) Companies will generally remain unaffected as their profit from interest should in most cases be subject to income tax at 10% and be exempt from Special Defence Contribution.

*  Interest income from Cyprus government savings bonds and development bonds and all interest earned by a provident fund is subject to special contribution for defence at 3% (instead of 10%). In the case where the total income of an individual (including interest) does not exceed €12,000 in a taxable year, then the rate is reduced to 3%.

All companies (except for dormant and those not owning any assets) are required to pay an annual fixed duty of €350 to the Registrar of Companies.  For groups of companies the total duty is capped at €20.000.

Deemed dividend distribution

When a Cyprus resident company does not distribute dividends within two years from the end of a tax year; 70% of accounting profits will be deemed to have been distributed. Therefore the 15% special contribution for defence is payable on deemed distribution of dividends by shareholders who are Cyprus tax resident. Deemed distribution can be reduced by payments of any actual dividends already paid during the same period.  Where a Cyprus company is owned by another Cyprus company (with shareholders not tax resident in Cyprus), then defence contribution paid by the subsidiary may be claimed back by non resident shareholders.

Company dissolution

Upon dissolution, the cumulative deemed undistributed profits of the previous five years will be considered as distributed upon dissolution and thus subject to special contribution for defence.  This provision does not apply in the case of dissolution under a Reorganisation.

Reduction of capital of a company

In the event of a reduction of capital, amounts paid or due to shareholders will be subject to special defence contribution after deducting any amounts which have been deemed as distributable profits, up to the amount of undistributed taxable income of any tax year before the deduction of losses from prior years.

The rate of Corporation Tax in Cyprus is 10%.  Companies pay Corporation Tax, Sole traders and partnerships do not pay Corporation Tax in Cyprus.

All companies that are tax-resident in Cyprus are taxed on income whether it comes from Cyprus or anywhere else in the World.  Companies which are not tax‑resident in Cyprus, but have a permanent establishment (office) in Cyprus are taxed on income from business activity conducted in Cyprus.

Some exemptions from Cyprus Corporation Tax are:

• Profits from an office (permanent establishment) in another country
• Dividends (Company profits paid to shareholders)
• Profits from the sale of shares and other securities

Expenses incurred by the company solely for business purposes can be deducted from corporation and include:

• Employer’s contributions to social insurance and approved funds on employees’ salaries
• Entertainment expenses for business purposes (with limitations)
• Donations to charities
• Building maintenance for buildings subject to a  Preservation Order (with limitations)

The following types of expenses are not allowed:

• Expenses related to acquiring or maintaining of a private (saloon) car
• Interest applicable to acquiring any asset (including a private car) not used in the business

Tax Losses

If a company makes a tax loss which cannot be set off against other income then it is carried forward so it can be set off against future profits.  There is no time restriction for this.

The losses of one company can be set off against the profit of another provided the companies are members of a group and both Cyprus tax resident.  Group is defined as; one company holding 75% or more of the shares of the other company.

Losses from an overseas office (permanent establishment) can be set off with profits of the company in Cyprus.

Annual wear and tear

If a company owns items of value (fixed assets) like; property; tools; vehicles etc then allowances are made for their depreciation (wear and tear).  Depreciation is calculated as a percentage of the cost of acquiring the asset.  The annual allowance is deducted from chargeable income.  The annual percentage by which the value of an asset is depreciated (rate of depreciation), depends on the type of asset.

Here are some examples:

• Plant and machinery 10%
• Tools in general 33.3%
• Furniture and fittings 10%
• Commercial motor vehicles 20%
• Commercial buildings 3%
• Motor boats 12.5%

For more information visit the YourBooks website: http://www.yourbooks.com.cy

This privacy policy sets out how YourBooks Ltd uses and protects any information that you give YourBooks Ltd when you use this website.

YourBooks Ltd is committed to ensuring that your privacy is protected. Should we ask you to provide certain information by which you can be identified when using this website, then you can be assured that it will only be used in accordance with this privacy statement.

YourBooks Ltd may change this policy from time to time by updating this page. You should check this page from time to time to ensure that you are happy with any changes. This policy is effective from [date].

What we collect

We may collect the following information:

• name and job title
• contact information including email address
• demographic information such as postcode, preferences and interests
• other information relevant to customer surveys and/or offers

What we do with the information we gather

We require this information to understand your needs and provide you with a better service, and in particular for the following reasons:

• Internal record keeping.
• We may use the information to improve our products and services.
• We may periodically send promotional emails about new products, special offers or other information which we think you may find interesting using the email address which you have provided.
• From time to time, we may also use your information to contact you for market research purposes. We may contact you by email, phone, fax or mail. We may use the information to customise the website according to your interests.

Security

We are committed to ensuring that your information is secure. In order to prevent unauthorised access or disclosure we have put in place suitable physical, electronic and managerial procedures to safeguard and secure the information we collect online.

How we use cookies

• A cookie is a small file which asks permission to be placed on your computer’s hard drive. Once you agree, the file is added and the cookie helps analyse web traffic or lets you know when you visit a particular site. Cookies allow web applications to respond to you as an individual. The web application can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.
• We use traffic log cookies to identify which pages are being used. This helps us analyse data about webpage traffic and improve our website in order to tailor it to customer needs. We only use this information for statistical analysis purposes and then the data is removed from the system.
• Overall, cookies help us provide you with a better website, by enabling us to monitor which pages you find useful and which you do not. A cookie in no way gives us access to your computer or any information about you, other than the data you choose to share with us.
• You can choose to accept or decline cookies. Most web browsers automatically accept cookies, but you can usually modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website.

Links to other websites

Our website may contain links to other websites of interest. However, once you have used these links to leave our site, you should note that we do not have any control over that other website. Therefore, we cannot be responsible for the protection and privacy of any information which you provide whilst visiting such sites and such sites are not governed by this privacy statement. You should exercise caution and look at the privacy statement applicable to the website in question.

Controlling your personal information

You may choose to restrict the collection or use of your personal information in the following ways:

• whenever you are asked to fill in a form on the website, look for the box that you can click to indicate that you do not want the information to be used by anybody for direct marketing purposes
• if you have previously agreed to us using your personal information for direct marketing purposes, you may change your mind at any time by writing to or emailing us at admin@yourbooks.com.cy

We will not sell, distribute or lease your personal information to third parties unless we have your permission or are required by law to do so. We may use your personal information to send you promotional information about third parties which we think you may find interesting if you tell us that you wish this to happen.

If you believe that any information we are holding on you is incorrect or incomplete, please write to or email us as soon as possible, at the above address. We will promptly correct any information found to be incorrect.

• Make sure the country is not on any blacklists
• Make sure the annual agent fees (if there are any)
• Make sure the government fees (if there are any) are not too high
• Make sure the annual audit cost (if it is a requirement) is not likely to be too high
• Make sure the country has a wide network of double taxation treaties and the terms of that treaty are favourable to your specific situation
• Make sure if the country is in the EU that it allows the payment of dividends to shareholders outside of the EU with no withholding tax

What is a company?

• A company is a legal entity (body, being or ‘thing’). This means it can take legal action and sue people or other companies, or be sued, have legal action taken against it.

What types of companies are there?

• Countries describe them differently, but in the UK and Cyprus the following are the most common types:
  • Public (Public listed company: ‘Plc’); as traded on a stock exchange
  • Private (Private limited company: ‘Limited’ or ‘Ltd’); a private business owned by the shareholders.
• Equivalents to limited companies can be found in other countries.  Example:
  • Plc = AG (Germany); SA (France, Poland)
  • Ltd = LLC (USA); GmbH (Germany); Sp. z o.o. (Poland)

Who can own a Cyprus company?

• Cypriots or foreigners or other companies – anybody!

What do you need to start a company?

• A name for the company.  The name must be submitted for approval to the Registrar of Companies before proceeding.  The chosen name should;
  • Not be the same as an existing company name
  • Not contain words such as: ‘euro’; ‘international’; unless particularly relevant
  • Not be offensive
  • Not contain geographic references, unless particularly relevant
• A description of the activity of the new company
• Name of Ultimate Beneficial Owner/s
• Name of the people who will be the officials; Director/s and Secretary (officers) of the company and be responsible for it and it’s conduct
• For owners and each of the officers the following is required: Proof of identity, address and good standing

What are nominees?

• A nominee is a proxy.  The nominee might be an individual or a company.
• Nominees provide greater anonymity and flexibility for the beneficial owner especially if the beneficial owner resides in a high tax country.  The Beneficial owner can appoint a nominee without losing control or risk, as a nominee may not take any action including management of the company.
• If the owner of the company lives outside Cyprus it is usual for the company to employ nominees.
• Nominees may be appointed for the following :
  • Shareholder
  • Director
  • Secretary
• The following documents are provided by the nominee to protect the security of the beneficial owner:
  • Trust deed
  • Undated Instruments of transfer
  • Directors’ resolution approving the transfer of shares to the actual shareholder
  • The original share certificates issued in the names of the nominal shareholders
  • Undated letters of resignation of the nominee directors
• Cyprus nominee shareholder; Cyprus nominee director; Cyprus nominee secretary; Cyprus nominee services; provision of nominee services in corpus;

How do I form a company?

• All you have to do is find and instruct a competent corporate services company, account or law firm

What are the company documents?

• Articles of Association & Memorandum
  • The articles of association of a company, often simply referred to as the articles are the regulations governing the relationships between the shareholders and directors of the company, Together with the memorandum, they form the constitution of a company.
  • Articles of association typically cover the issuing of shares the different voting and dividend rights attached to different classes of share, restrictions on the transfer of shares, the rules of board meetings and shareholder meetings, and other similar issues.
• Certificates (there are 4 certificates):
  • Certificate of incorporation (proving the company is incorporated in Cyprus on “X” date
  • Certificates of registered address (shows the official address where the “company lives’
  • Certificate of shareholders (showing the name of shareholders and amount of shares held)
  • Certificate of directors & Secretary (shows who does want)
• Company Stamp (for stamping official company documents)

What is Power of Attorney?

• A power of attorney (POA) is an authorisation to act on someone else’s behalf in a legal or business matter. The person authorising the other to act is the Principal (granter of the power), and the one authorised to act is the Agent (the Attorney).

What does ‘certified’ mean and why might I need it?

• A document is certified by, someone who is appropriately qualified such as a lawyer or bank officer or a public notary to prove a document is genuine and authentic.

What does ‘apostille’ mean and why might I need it?

• Apostille is a French word meaning certification. It is commonly used in English to refer to the legalization of a public or government document when it will be used internationally.  Under the terms of the 1961 Hague Convention countries accept the legalized documents of other countries as official and genuine.

Policy

It is the policy of YourBooks and its affiliates, (hereinafter “YourBooks”) to prohibit and actively pursue the prevention of money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities. YourBooks is committed to AML compliance in accordance with applicable laws of jurisdictions where YourBooks offers corporate and legal services.  YourBooks requires its officers, employees and affiliates to adhere to these standards in preventing the use of its products and services for money laundering purposes.

For the purposes of the Policy, money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the unlawful proceeds appear to have been derived from legitimate origins or constitute legitimate assets.

Generally, money laundering occurs in three stages. Cash first enters the financial system at the “placement” stage, where the cash generated from criminal activities is converted into monetary instruments, such as money orders or traveler’s checks, or deposited into accounts at financial institutions. At the “layering” stage, the funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin. At the “integration” stage, the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses.   Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal the origin or intended use of the funds, which will later be used for criminal purposes.

Each employee of YourBooks, whose duties are associated with the  provision of products and services  of YourBooks and who directly or indirectly deals with the clientele of YourBooks,  is expected to know the requirements of the applicable  laws and regulations  which affect his or her job responsibilities, and it shall be the affirmative duty of such employee to carry out these responsibilities at all times in a manner that complies with the requirements of the relevant laws and regulations.

The laws and regulations include, but not limited to: “Customer Due Diligence for Banks” (2001) and “General Guide to Account Opening and Customer Identification” (2003) of Basel Committee of banking Supervision, Forty + nine Recommendations for Money Laundering of FATF, USA Patriot Act (2001), Prevention and Suppression of Money Laundering Activities Law of (1996).

To ensure that this general policy is carried out, management of YourBooks has established and maintains an ongoing program for the purpose of assuring compliance with the relevant laws and regulations and the prevention of money laundering. This program seeks to coordinate the specific regulatory requirements throughout the group within a consolidated framework in order to effectively manage the group’s risk of exposure to money laundering and terrorist financing across all business units, functions, and legal entities.

Each of the affiliates of YourBooks is required to comply with all aspects of the group’s policy as well as their own AML policies which specifically consider the local AML laws and requirements to which they are subject. Failure by the group and its affiliates to comply with the all applicable local AML laws and regulations could result in severe regulatory sanctions, possible fines and criminal penalties and damage to the group’s business reputation.

Risk Assessment

An assessment of the risk of exposure to money laundering issues across all customer relationships shall be completed using the YourBooks standardized risk rating model. The risk rating model shall be approved by the Board of Directors on an annual basis.

Suspicious Activities

There are signs of suspicious activity that suggest money laundering. These are commonly referred to as “red flags.” If a red flag is detected, additional due diligence will be performed before accepting client’s requests or providing services.

Examples of red flags are:

- The customer exhibits unusual concern regarding the AML policies, particularly with respect to his or her identity, type of business and assets, or is reluctant or refuses to reveal any information concerning business activities, or furnishes unusual or suspect identification or business documents.

- The customer wishes to engage in transactions that lack business sense or apparent investment strategy, or are inconsistent with the customer’s stated business strategy.

- The information provided by the customer that identifies a legitimate source for funds is false, misleading, or substantially incorrect.

- Upon request, the customer refuses to identify or fails to indicate any legitimate source for his or her funds and other assets.

- The customer (or a person publicly associated with the customer) has a questionable background or is the subject of news reports indicating possible criminal, civil, or regulatory violations.

- The customer exhibits a lack of concern regarding risks, commissions, or other transaction costs.

- The customer appears to be acting as an agent for an undisclosed principal, but declines or is reluctant, without legitimate commercial reasons, to provide information or is otherwise evasive regarding that person or entity.

- The customer has difficulty describing the nature of his or her business or lacks general knowledge of his or her industry.

- The customer attempts to make frequent or large deposits of currency, insists on dealing only in cash equivalents.

- For no apparent reason, the customer has multiple accounts under a single name or multiple names, with a large number of inter-account or third-party transfers.

- The customer is from, or has accounts in, a country identified as a non-cooperative country or territory by the Financial Action Task Force.

- The customer’s account has unexplained or sudden extensive wire activity, especially in accounts that had little or no previous activity.

- The customer’s account shows numerous currency or cashiers check transactions aggregating to significant sums.

- The customer’s account has a large number of wire transfers to unrelated third parties inconsistent with the customer’s legitimate business purpose.

- The customer’s account has wire transfers that have no apparent business purpose to or from a country identified as money laundering risk or a bank secrecy haven.

- The customer’s account indicates large or frequent wire transfers, immediately withdrawn by check or debit card without any apparent business purpose.

- The customer makes a funds deposit followed by an immediate request that the money be wired out or transferred to a third party, or to another firm, without any apparent business purpose.

- The customer makes a funds deposit for the purpose of purchasing a long-term investment followed shortly thereafter by a request to liquidate the position and transfer of the proceeds out of the account.

- The customer engages in excessive journal entries between unrelated accounts without any apparent business purpose.

- The customer requests that a transaction be processed in such a manner to avoid the firm’s normal documentation requirements.

- The customer, for no apparent reason or in conjunction with other red flags, engages in transactions involving certain types of securities, such as penny stocks, bearer bonds, which although legitimate, have been used in connection with fraudulent schemes and money laundering activity. (Such transactions may warrant further due diligence to ensure the legitimacy of the customer’s activity.)

Specially Designated Nationals and Sanctioned Parties Screening

All new customers shall be screened against the U.S. Office of Foreign Assets Control’s (OFAC) list of Specially Designated Nationals (“SDN”) and sanctioned parties prior to services offered or an account being opened on that customer’s behalf. Any matches against these lists will be resulting to refusal of YourBooks to provide any services to listed individuals and legal entities.

Customer Identification

YourBooks will document and maintain written customer identification procedures (“CIP”) that will enable to form a reasonable belief that YourBooks knows the true identity of each customer. If the YourBooks is not able to verify the identity of a customer within a reasonable period of time after services or account opening request, that services shall be suspended and account will be closed. Such an account and services will be subject to increased due diligence until such time as the customer’s identity has been verified or the account has been closed and services suspended.

CIP for Natural Persons

For natural persons the following information should be obtained, where applicable:

- Legal name and any other names used (such as maiden name);

- correct permanent address (the full address should be obtained; a Post Office box number is not sufficient);

- Telephone number, fax number, and e-mail address;

- Date and place of birth;

- Nationality;

- Occupation, public position held and/or name of employer;

- an official personal identification number or other unique identifier contained in an unexpired official document (e.g. – passport, identification card, residence permit, social security records, driving license) that bears a photograph of the customer;

- source of wealth (where appropriate).

YourBooks shall verify this information by at least one of the following methods:

- confirming the date of birth from an official document (e.g. birth certificate, passport, identity card, social security records);

- confirming the permanent address (e.g. utility bill, tax assessment, bank statement, a letter from a public authority);

- contacting the customer by telephone, by letter or by e-mail to confirm the information supplied after an account has been opened or other services provided (e.g. a disconnected phone, returned mail, or incorrect e-mail address should warrant further investigation);

- confirming the validity of the official documentation provided through certification by an authorized person (e.g. embassy official, notary public).

CIP for Institutions

The underlying principles of customer identification for natural persons have equal application to customer identification for all institutions. Where in the following the identification and verification of natural persons is involved, the foregoing guidance in respect of such persons shall have equal application. The term institution includes any entity that is not a natural person.

For corporate entities (i.e. corporations and partnerships), the following information should be obtained:

- Name of institution;

- Principal place of institution’s business operations;

- mailing address of institution;

- contact telephone and fax numbers;

- Some form of official identification number, if available (e.g. tax identification number);

- The original or certified copy of the Certificate of Incorporation and Memorandum and Articles of Association;

- Nature and purpose of business and its legitimacy.

This information should be verified by at least one of the following methods:

- For established corporate entities – reviewing a copy of the latest report and accounts (audited, if available);

- conducting an enquiry by a business information service, or an undertaking from a reputable and known firm of lawyers or accountants confirming the documents submitted;

- undertaking a company search and/or other commercial enquiries to see that the institution has not been, or is not in the process of being, dissolved, struck off, wound up or terminated;

- utilizing an independent information verification process, such as by accessing public and private databases;

- obtaining prior bank references;

- visiting the corporate entity, where practical;

- contacting the corporate entity by telephone, mail or e-mail.

Recordkeeping

All identification documentation and services records shall be kept for the minimum period of time required by local law.

Training

All new employees shall receive anti-money laundering training as part of the mandatory new-hire training program. All applicable employees are also required to complete AML training annually. Participation in additional targeted training programs is required for all employees with day to day AML responsibilities.

Administration

For the purposes of AML Policy YourBooks has an AML Compliance Committee. YourBooks AML Compliance Committee is responsible for the administration, revision, interpretation, and application of this Policy. The Policy will be reviewed annually and revised as needed.

The duties of the AML Compliance Committee with respect to the Policy includes, but shall be not limited to, the design and implementation of as well as updating the Policy as required;  training of officers and employees; monitoring the compliance of YourBooks affiliates, maintaining necessary and appropriate records; and independent testing of the operation of the Policy.

If you thought being a consultant or a provider of professional services was tough before, then the last year has proved you right!
Today professionals are working for tighter margins, chasing smaller markets, and in a more tightly regulated market. However there are ways in which a professional can help him or herself; professionals who work internationally can benefit from forming an offshore company.

Such a company, actually more accurately described as an International Business Company (IBC), can be used to great effect as a tax planning tool by Accountants, lawyers, financial advisors and consultants etc, who conduct their business internationally either in or outside the European Union.  The Cyprus IBC may be used thus:
The professional closes a deal with a client.  The Client does not sign a contract directly with the Professional. Instead the contract is between the Client; and the Cyprus IBC.

The Client pays the Cyprus IBC.  Therefore profits will accrue in Cyprus which has one of the lowest rates of corporate tax in the World.  The Professional then might send an invoice to the Cyprus IBC for services rendered
The Cyprus IBC pays the invoice to the Professional wherever he chooses or resides, thereby the balance of profits sits in Cyprus and not in a higher taxed country
Costs:
• The cost of a Cyprus IBC starts from €700
• Nominee fees (optional) are 160 per year
What makes Cyprus so attractive is the fact it has concluded so many double taxation treaties.  The Russia-Cyprus treaty for example, is one of the most favourable for non-Russia resident that Russia has signed with any other country.
The advantages of a Cyprus IBC offering consultancy services are the following:
• Consultancy income:  The income from consultancy services will be subject to corporation tax at the rate of 10% after deducting all allowable expenses such as salaries and consultancy fees.
• Salaries:  The salaries paid by a Cyprus IBC to employees who are not resident in Cyprus are not subject to any taxation or social insurance contributions in Cyprus.
• Consultancy fees:  The fees paid by a Cyprus IBC to consultants who are not resident in Cyprus are not subject to any taxation in Cyprus
• Dividends distributed:  No withholding tax on dividends distributed to non resident shareholders of Cyprus Companies.
The above is an indicative guide about to approach the issue for more information visit http://yourbooks.com.cy/

It is usually for an Cyprus IBC (offshore) company to employ nominees.

Nominees provide greater anonymity and flexibility for the beneficial owner especially if the beneficial owner resides in a high tax country.  the Beneficial owner can appoint a nominee without losing control or risk, as a nominee may not take any action including management of the company.

Nominees may be appointed for the following :

• Shareholder
• Director
• Secretary

The following documents are provided by the nominee to protect the security of the beneficial owner:

• Trust deed
• Undated Instruments of transfer
• Directors’ resolution approving the transfer of shares to the actual shareholder
• The original share certificates issued in the names of the nominal shareholders
• Undated letters of resignation of the nominee directors

Cyprus nominee shareholder; cyprus nominee director; cyprus nominee secretary; cyprus nominee services; provision of nominee services in cyrpus;