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A.G. GEORGHIOU LTD
Accountants – Auditors, Tax consultants
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OFFSHORE
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 TYPES OF INTERNATIONAL COMPANIES
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TYPES OF INTERNATIONAL COMPANIES
The following are some of the types of companies currently operating
in Cyprus:
Headquarter companies - Cyprus with its
advantageous geographical position and well developed infrastructure is
probably at the most suitable location in the Eastern Mediterranean, and is
particularly attractive to multinational companies throughout the Western
world with interests in the Middle East and Africa.
Holding and investment companies - a holding company can be the parent of a
number of offshore companies registered in Cyprus or companies registered
abroad. This is of particular interest where a number of investors are
participating in offshore Cyprus
companies, or where companies registered abroad wish to control and direct
their investments through a holding company. Such companies may often be used
advantageously in conjunction with the Cyprus double tax treaties.
Employment companies - an employment company can be established with the main object of
providing or recruiting labour for contract or other work carried on outside Cyprus. This
is most advantageous to nationals of countries whose tax laws provide that
whenever tax is paid in another country, their salary income can be remitted
to their home countries with no or little additional tax. Such companies may
be particularly attractive to Belgian, Australian, Austrian and French
nationals.
Finance companies - a finance company may be established with the main object of
providing loans in countries with which Cyprus has double tax treaties or
with countries where there is low or no withholding tax on interest.
Trust and management companies - trust and management companies may be set
up in Cyprus
for the management of investment, pensions and trusts. The recent legislation
on International Trust Law puts Cyprus in the front running as an
international trust centre.
Trading and re - invoicing companies - such companies are used for the re - invoicing
of materials, goods and services from any country to any destination. Any
formal documentation or procedures required, such as certificates of origin
or legalisation of invoices, can be obtained from
the Cyprus Chamber of Commerce. These companies may be operated by setting up
an office in Cyprus
and appointing an expatriate or local manager to co -ordinate, negotiate and
conclude purchasing contracts. Trading and re - invoicing companies may also
be used for depot and transit trade activities through the use of bonded
warehouse. There is a wide scope for such companies which are currently used
by persons or companies of a number of nationalities.
Construction and engineering companies - the favourable tax treatment attributable
to profits emanating from construction and engineering projects carried out
outside Cyprus by offshore
construction and engineering companies, in conjunction with the Cyprus double tax treaties, makes Cyprus a
prime location for setting up such companies.
Service and consultancy companies - Cyprus
is becoming a much preferred location for the establishment of service and
consultancy companies, mainly by British and European architects, engineers,
quantity surveyors and other consultants with activities in the Middle East
and Africa.
Printing and publishing companies - Cyprus
offers itself for the registration of offshore companies engaged in the
printing and type - setting of books and periodicals for sale and
distribution outside Cyprus.
The quality and low cost of local printing and the highly developed
telecommunications system in Cyprus
are among the main factors that contributed to the development of Cyprus as a
publishing, printing and distribution centre.
Shipping and ship management companies - these companies are dealt with on a
separate handout. It is worth noting that a number of offshore ship and crew
management companies are currently operating successfully in Cyprus.
Real estate companies - these companies are used
extensively and advantageously both for investment and for dealings in land
and buildings. In particular, such companies may be used in conjunction with
the Cyprus double tax
treaties and can be of special interest for investment in real estate in the UK, France Denmark and Sweden.
Royalty companies - these companies may be established in Cyprus either
on an offshore or onshore basis. The nil to 5% withholding tax, provided by
the Cyprus
double tax treaties, renders such companies very attractive.
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