The establishment of a Cyprus International Business Branch requires that a specific 2 stage procedure is followed for:
- Obtaining a Central Bank of Cyprus permission
- Registration with the Registrar of Companies
Central Bank of Cyprus permission
The requirements are the same those for the Central Bank of Cyprus permission for an IBC.
Registration with the Registrar of Companies
After obtaining permission from the Central Bank, a branch of an overseas company must be registered with the Registrar of Companies. The following documents must be delivered to the Registrar:
- Copy of the charter, memorandum and articles of association or other instrument defining the constitution of the company (translated in Greek). These documents must be legalised and "apostilled" in the country of origin by a notary public. Alternatively, legalisation is required both by a notary public and the Republic of Cyprus Consul in that country.
- Particulars of directors and secretary of the company.
- Name and address of at least one person resident in Cyprus who is authorised to accept on behalf of the company any notices required to be served on the company.
Advantages of International Business Branch
An International Business Branch registered in Cyprus can enjoy all the advantages extended to all the International business legal entities. In relation to the tax position of such a branch:
- If the management and control of the business of the International Business Branch is not in Cyprus, the profits of the branch are exempt from all taxes.
- If the management and control of the business of the International Business Branch is in Cyprus, then the profits of the branch are subject to the reduced tax rate of 4.25%.
The content of this article is intended only to provide general guidelines related to this particular matter. For your specific circumstances, full specialist advice is recommended.
To receive more information on offshore services or to discuss the particulars of your international tax planning needs please contact the authors.