IBCs may be run from Cyprus but none of their objects may be carried out within the island. Such companies can only derive income from activities abroad. They are not allowed to deliver any goods or services in Cyprus, either to residents or non-residents, or to act as middle-men for foreign products or as exporters of Cypriot products.
- contact each other and deal among themselves, provided the object of business is confined outside the island
- pay each other from their foreign currency accounts, provided the goods or services involved are delivered outside the island.
Those IBCs with common ownership of 50 percent or more may share a fully fledged office and offer administrative services to each other in Cyprus. If confidentiality is desired, it is possible to use nominee or trustee shareholders since only their names will appear in the records kept by the Registrar of Companies.
At the same time, business entities with non-resident participation are required to prepare and submit to the Central Bank and the Department of Inland Revenue annual financial statements audited by local practising accountants.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances from a local lawyer or accountant.