The existence of double taxation treaties empower the company to avoid the double taxation if the company is considered as resident in Cyprus. It can be regarded as resident in Cyprus if:

1. Majority of its directors reside in Cyprus;
2. Board meetings take place in Cyprus.

There is a Permanent Registered Office in Cyprus, submitting their annual returns by certified accountants. Our office can become a registered office. Of course if needed, Nominee Directors and Nominee Shareholders can be appointed in which case our consultancy and/or secretarial company can be selected to represent the international company and become a Director. A preparation of a trust deed is also essential which may prove that the trustee can keep those shares for the benefit of the actual beneficiary.

Every object and activity can be included in the Memorandum as long as the activity is legal. Normally the clauses are widely drafted to include every eventuality, i.e to carry on any business activity, to conclude agreements of every kind, to buy shares, to borrow, to raise money, to invest and reinvest. An application to amend the Memorandum is normally accompanied by an affidavit and a special resolution. This is a legal job which can be met by our office. Needless to say that European Citizens can be shareholders in a Cypriot Company up to 100% with some exceptions to the general rule. For example like the BVI, cypriot companies whose shareholders are European and not Cypriot European, may not carry on banking or trust business (unless licensed under the Banks and Trust companies Act 1990) or insurance or reinsurance business (unless licensed in the BVI/Cyprus to carry on that business).

An important different with the BVI is that the offshore enterprises can be carried out in a tax-free regime. The British Virgin Islands has treaties with Japan and Switzerland and there is no requirement to submit audited accounts with the authorities. Nevertheless a company is required to keep financial records.

A Director like a secretary can be a natural person or a body corporate and the minimum number of a director is one for private companies in both jurisdictions. If it is a public company then one has to nominate at least two Directors for BVI/ Cyprus jurisdiction. Furthermore, if you come from a EU country, the requirement for a bank reference has been abolished in Cyprus.

Please note that the Questionnaire may help you decide the incorporation of an international company in Cyprus with all tax benefits described above. The company application is standard practice for us and immediately when we receive your written instructions we may proceed. We can keep a number of shelf companies and most of them are general trading. We can also reserve couple of names for the needs of our clients.