Globalserve – Cyprus Company Formation – бизнес на кипре
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  • Offshore – tax heaven companies
  • Exempt from local taxation
  • Pay annual license fee- zero tax
  • Not obliged to submit financial report
  • No obligation to have local director
  • Low cost of maintenance
  • Ability to use corporate directors
  • No information on beneficiaries
  • No information at the Registrar on Directors/Shareholders

Confidentiality

  • In some jurisdictions the Registrar does not have information about the Directors or Shareholders of the company. This information is kept by the Registered Agent. For example BVI and Belize. None the less, in Panama and Bahamas, this information is with the Registrar.
  • In some jurisdictions bearer shares are issued-Panama
  • Confidentiality and protection of assets for the company owners

Disadvantages

  • Offshore are not very respectable
  • No double tax treaties with other countries
  • Most of the countries subject such companies to additional taxation, withholding tax, when dividend is paid and their invoices are rejected by their tax authorities
  • Therefore, it is important to use them in international tax planning schemes with companies whose countries do not impose withholding tax on dividends and accept their invoices

Uses of Offshore

  • Not suitable for investment activity i.e. payment of dividend, interest
  • However offshore structures are suitable as personal investment funds (Wallet). It is the company which is the final element of the asset ownership structure. It is used as the last shareholder in a group structure which finances the rest of the projects and business activities of a group.
  • Also used as trade agent in international trade where the supplier company is controlled by the beneficiary of the offshore company. In this way he transfers part of the income to tax free offshore company

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