Forming Offshore Companies in Cyprus
What are the benefits of forming a holding company in Cyprus?
Registering an Offshore Company or ‘International Business Company’ as they are now formally known is highly advisable for a variety of reasons depending on the type of company.
The basis of forming a holding company in an international financial centre like Cyprus is mainly to take advantage of the jurisdictions tax regime, although the purpose is not limited to tax benefits.
Companies seeking to trade internationally or invest offshore will form a holding company overseas. Advantages of using an offshore company are numerous. The two main benefits include:
The tax savings through a holding company can be huge depending on your net profits and which jurisdiction you operate in. Some locations offer low or no corporate tax and no income tax.
Legal protection is another top deciding factor in creating an offshore company. An offshore organisation takes advantage of the fact that the company assets are protected against lawsuits and other legal repercussions therefore securing the company’s resources. Thirdly, an offshore company can enjoy anonymity where desired.
There are several aspects to consider when deciding which jurisdiction to move to such as