Globalserve – Cyprus Company Formation – бизнес на кипре
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1. Low tax jurisdiction which enables businesses to save taxes:

The low tax rates are combined with extensive network of double tax treaties with clauses which avoid double taxation lower or eliminate completely withholding tax on dividend, royalties, interest. An IBC takes advantage of the lower tax rates prevailing in the country of incorporation compared to one’s own country, provided there is a double tax treaty between the two countries for the avoidance of double taxation. An IBC is used as a vehicle in international tax planning to direct profits out of high tax countries to offshore jurisdictions and international business centers, thus taking advantages of the lower or zero tax rates and double tax treaties; therefore, by directing your taxable income to your offshore company, you can reduce your tax burden.

2. Anonymity and Confidentiality:

An IBC makes it possible to receive money, commissions, and other income with anonymity. With respect to the beneficial owners, they have the opportunity to carry out businesses without anybody knowing who is behind the company. This applies in several cases such as buying property in any country without anybody knowing who is buying or even hold current assets, such as shares or just a bank account.

3. Low administrative costs:

The administration costs are low in running one’s business from onfshore business centers. For instance, some onshore destinations such as Cyprus, provide a high standard professional business environment, located near the markets of Europe, Middle East, Africa and the Gulf while at the same time offering high standard living conditions at relatively low costs.

4 Established in International Business Centres with:

  • Very good infrastructure
  • Complete legal framework
  • High level of professional service
  • Well structured and developed banking system

They are considered respectable jurisdictions although the need to prove substance is gaining place these days while most of them need the company’s financial statements to be audited.

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