Question:  Is a Cyprus company (IBC) entitled to open an office in Cyprus?

Answer:  Yes, but work permits and residence permits are required for non - EU nationals who may wish to live and work in the office in Cyprus.

Question:  Can we open a bank account in Cyprus or abroad?

Answer:  A Cyprus company can open a bank account anywhere in the world.  We have links with a number of banks in the UK, Greece, Cyprus and elsewhere and can assist you with the opening and maintenance of bank accounts. 

Question:  Can an IBC and its directors/staff obtain visa cards?

Answer: Yes, one can obtain a Visa/Master/Electron Card etc., which will be directly connected to his/her account. Moreover, internet banking is also available.

Question: What are your fees?

Answer: Our fees for all services are most reasonable and can be provided upon request.  Please note that the presentation and quality of all we will give you is of very high standard.

Question: Is there a minimum capital requirement and what is the minimum share capital?

Answer: There is no minimum capital requirement. The minimum share capital of the company is 1,000 Cyprus pounds.  This money does not have to be paid in a bank account of the company. Also, in Cyprus no share capital amounts are blocked like in some other countries and in any case, if the fees that are paid for the registration and set-up of the company exceeds the share capital amount, this automatically means that the share capital has been paid.

Question: Can you provide us with a list of already approved names and names of shelf companies?

Answer: Upon request we can provide you a list of already approved names for registration purposes as well as names of shelf companies (please note that shelf companies can be delivered within 24 hours).

Question:  Are "Nominee Services" necessary?

Answer: Please note that Cyprus International Business Companies (used to be called Cyprus Offshore Companies) enjoy all the tax advantages you require irrespective of who the actual registered shareholders are.

Concerning shareholders, the great majority of beneficial owners of all IBC's registered in Cyprus prefer nominee shareholders for confidentiality, competition and other reasons.

In all cases, beneficial owners are provided with a trust deed, an instrument of transfer which authorizes the nominees to hold the shares in trust for the non-disclosed beneficiaries.

Question: How can someone tell that that company is tax resident in Cyprus?

Answer:  To all of our clients we give a tax domicile certificate issued by the Cyprus Tax Authorities which certificate states that "the company is a Cypriot Company, resident in Cyprus, pays taxes in Cyprus on its worldwide income etc etc”.  This gives credibility to your company and no one can claim it is a “tax haven” company.

Question: Is it necessary to come to Cyprus in order to register an IBC and/or open a bank account?

Answer: It is not necessary for you to come to Cyprus for the establishment of your company in the case where nominees are provided and they may sign all the applications and company Memorandums.  In the case you do not wish to have nominees, then, usually (but not always), it is necessary for you to come to Cyprus because you will have to sign all the company Memorandums and all the documents and this is one additional reason why nominees are advantageous.

 Also, by having nominees and local directors/secretary, you do not have to come to Cyprus in order to open bank accounts as nominees may do this for you.

Question:  Will Cypriots be allowed to participate in IBC’S?

Answer:  Up to 31/12/2002 participation of Cypriots who are permanent residents of Cyprus was not allowed. As from 01/01/03 the tax distinction between International Companies and Local Companies is abolished and the participation of Cypriots and non-Cypriots in the capital of the companies, registered in Cyprus as from that date, is allowed.

VAT

1)     If a Cyprus IBC provides services (eg consultancy, marketing, etc.) to another Cyprus IBC irrespective of where the services take place then the IBC will be subject to VAT registration if the annual income from such services exceeds CYP9,000.

2)     For sale of goods (outside Cyprus) to other Cyprus IBC’S or other foreign companies no VAT registration is applicable.

3)     VAT registration is also applicable in cases of “reverse charge” situations. This is, for example, when a Cyprus IBC receives services from companies situated outside Cyprus (e.g. Consultancy, marketing etc.) in which case it must register for VAT if such services exceed CYP £9,000 per year. It is however noted that some services (we can send you a list upon request) do not constitute “reverse charges” (e.g. directorship services, sale of goodwill, filing services, etc.) In “reverse charge” situations the company which registers for VAT can claim a VAT refund on all vatable expenses whilst no VAT is charged on their services offered to foreign companies or on trading of goods taking place outside Cyprus.

In essence, by registering for VAT, no VAT is suffered by the company and VAT can be claimed on expenses such as legal fees, audit fees and other expenses incurred in Cyprus. Having said this, VAT registration, implies costs of maintaining VAT records and some administration burden (such as completion and submission of quarterly VAT returns) which could best be avoided (for furthermore information please contact our Nicosia office).

 Nicosia, 17 October 2002