An International Business company in Cyprus may perform a wide range of activities the most common of which are set out below:
Cyprus offers ideal conditions for the location of regional management and administrative centers of multinational companies throughout the world with interests in the Middle East, North Africa and Eastern Europe
There is very wide scope for the use of such companies in Cyprus, particularly in conjunction with trading activities in the region. This is indicated by the numerous trading companies in Cyprus used by organizations and entities of various nationalities. Such companies can be used for triangular trading and also as agency companies receiving commission (main advantage is that the company can register for VAT as well), the export of goods and services from any country to any destination and for transit trade activities.
Holding and Investment Companies
In view of the nil or low withholding tax rates on interest and dividends provided for in the Cyprus double tax treaties, such companies may often be used very advantageously to extract income from treaty countries. An IBC holding company can be the parent for companies registered abroad as well as Cyprus registered IBCs.
Also in view of the new tax legislation, the holding companies operating from Cyprus are now in a much more beneficial position because they can enjoy the benefits deriving from the tax exemptions as well as the corporate tax benefits by virtue of the new tax legislation.
These may provide services such as sales promotion, consultancy, management marketing, etc.
Construction and Engineering Companies
Cyprus is an ideal location for international construction and engineering companies due to the favorable tax treatment afforded to them and the existence of the Cyprus double tax treaties. Foreign contractors or engineers from a foreign country may avoid paying tax in a Cyprus treaty country provided the project does not exceed the duration specified in the respective tax treaty.
Such companies may take advantage of the Cyprus double tax treaties by providing loans in treaty or other countries where withholding tax on interest is low or nil.
Due to the low withholding tax rates for royalties provided in most of the Cyprus double tax treaties, establishing a royalty company in Cyprus can be a very attractive proposition.
Printing and Publishing Companies
Cyprus has developed into a regional publishing, printing and distribution centre mainly due to its low cost, high quality printing services and its excellent telecommunications system. These advantages together with the tax incentives offered, have led to the establishment in Cyprus of many offshore companies engaged in the printing and type-setting of books and periodicals for sale and distribution outside the Republic
Real Estate Companies
Such companies can be used very advantageously for dealings in property, especially in conjunction with the Cyprus double tax treaties. They can be of special interest for real estate investments in Sweden, Denmark, France, the UK and all Central and Eastern European Countries
An IBC employment company can be used to substantially mitigate the tax paid by expatriates employed outside their home country
The establishment of an open ship Registry, as well as other incentives provided by the government, has been important factors in the development of the island as a maritime centre in the region.
Captive and General Insurance Companies
During the past decade, Cyprus has developed into an attractive centre for the establishment of offshore insurance and reinsurance companies intending to transact insurance and reinsurance business internationally and especially in the Mediterranean, Eastern Europe and the Middle East.
Due to tax incentives offered, special insurance law exemptions, swift registration procedures, low running costs and locally available expertise, Cyprus is especially suitable for the establishment of an International captive insurance company.