North Cyprus Offshore Company

North Cyprus Offshore Company (International Business Company -IBC)

North Cyprus Offshore Companies are formed under 38/2005 International Business Company Law . This is the most recent Company type made available to investors in North Cyprus. International Business Company Law is compliant with European Union legislation.

North Cyprus Offshore Company benefits from 1% Corporate Tax Rate and 0% VAT.  There is also no withholding tax on dividends paid to shareholders. There generous tax benefits mean that your profits will reach you after a 1% deduction every year. Additionally there is no restrictions on transfer of profits and capital abroad. Compared to other low tax jurisdictions costs to incorporate and paid up capital requirements (Only 20,000 Euros) are very low.

You are also allowed to setup an office (not a requirement) anywhere in TRNC. Our  firm can also provide you with Virtual Office amenities (24/7 Call Center and Physical Office Address). You are also allowed to employ foreign nationals with a North Cyprus Offshore Company licence.

Another appealing feature of North Cyprus Offshore Company is ability to nominate Proxy directors and shareholders. Proxy directors and shareholders allow your identity to remain hidden while you conduct your business. You will be able to keep your tax advantages business structure hidden from your competition.

North Cyprus Offshore company can be used for all activities (Except for Online Gambling). Online gambling and sports betting is subject to different rules and regulations (Contact us if you wish to operate in these industries).

North Cyprus Offshore company attracts investors from all over the world in following fields: Travel Agency, Aviation Services, Finance, Consulting, IT, Online Services and Telecommunication. See a list of companies with North Cyprus Offshore company structure, proving the success of this company type,: Prodo Travel, Triplestar Aviation, Toma FinanceAta Game, There are more than 300 offshore companies utilising this company type.

Advantages of North Cyprus Offshore Company (IBC) Formation

  • Pay only 1% Corporation Tax on your year end taxable profits. By law this company type cannot be subjected to any other tax type ( 38/2005 International Business Company Law  Section 13),
  • North Cyprus Offshore Company is tax exempt for all kinds of direct tax (VAT, Stoppage Tax etc…) that can result from provision of goods and services (including royalty fees).
  • North Cyprus Offshore Companies are also exempt from immovable property tax; and its shareholders are exempt from any inheritance or income tax that can result from transferring shareholding in the company,
  • Interest income you generate on your company savings account is limited to 1% tax,
  • North Cyprus Offshore Company can open any number of savings accounts in foreign currency (GBP/USD/EURO) and pay only 1% tax on interest received,
  • No withholding tax on dividends paid out from North Cyprus Offshore Company to shareholders that are not resident in TRNC (Spending less than 183 days per calendar year) If you are unsure about your worldwide tax residency status Contact Us for professional advice,
  • Via proxy director and shareholder service you can keep your identity and investment hidden from your competition.

 

North Cyprus Offshore Company

North Cyprus Offshore Company (IBC) Requirements

  • For each shareholder a Character Reference Letter from a Lawyer (from shareholder’s country of residence) needs to be obtained,
  • For each shareholder a Letter of good standing from a Bank (from shareholder’s country of residence) needs to be obtained,
  • Board of Company needs to have a minimum of 1 Director and 1 Secretary. Both can be non-TRNC Citizen,
  • Need to provide Proof of ID and Proof of Address.
  • Minimum paid up share capital needs to be 20,000 Euro,
  • Memorandum of Association and Articles of Association needs to be prepared according to Cap 113 Companies Law.

 

North Cyprus Offshore Company (IBC) Costs

  • Application fee of 500 Euro,
  • 5,000 Euro (Paid Annually) North Cyprus Offshore Company operating licence fee,
  • In order to prove Paid-up Share Capital, 20,000 Euro needs to deposited to a designated local bank account. This amount can be withdrawn once the company is incorporated (within 3-4 weeks). If you need financing for this amount contact us. Financing costs are calculated separately.
  • Additional cost of Stamp Duty and related costs for Company Documents will be determined during application process,
  • Our fee for incorporation services will be determined during application process,
  • As per 38/2005 International Business Company Law Section 19, North Cyprus Offshore Company needs to keep accounting records same as a Local Company would. Our bookkeeping fees are calculated according to the nature and volume of your work. We can calculate this amount while setting up your company.