Every business runs for the purpose of profit making. The more the profit the successful the business, but nothing in this world comes for free. Even the smallest profit a business gained has to be accounted for and paid in taxes. Although, it sounds unfair, this is a legal way to keep the profiteering habits of organizations in check. However this also acts as a deterrent to many businesses that deal in the international arena. No wonder then that the setting up of offshore companies has found increasing favour among many international businesses. There are many favoured destinations for these businesses like the British Virgin Islands, Seychelles and Marshal islands. In Cyprus offshore companies have a great potential for growth and expansion along with the benefit of reduced taxes. This is what makes it such a popular destination for the business segment.
Offshore companies are companies that can conduct business globally with their head offices being in a different country. For instance, Cyprus offshore companies can conduct businesses in US and the UK, while their main branch remains at Cyprus. The main aim of establishing an offshore company is to reduce the amount of money paid in taxes. Regardless of the kind of business, taxes saved definitely add to the profit. In countries like Cyprus offshore companies can pay tax rates that are comparatively very low and save some overhead expenses. This is why they are becoming such a popular option.
Another benefit of setting up a Cyprus offshore companies is the legal benedictions that are available to these companies. The Cyprus company law has a number of beneficial factors like the lack of exchange control restrictions, exemption of stamp duties and contracts as entered by foreign offshore companies and freely transferable accounts. Of course, setting up an offshore company does involve certain drawbacks. One of these is that the credibility of an offshore company is far less than that of an onsite company.
Other beneficial features of being involved in international trade could be having an offshore banking account. Cyprus banking is known for its simple procedure for establishment and the high returns factor. A Cyprus bank account is available to all company types, is tax free for foreign citizens and requires no initial deposit or minimum balance. This is what makes them such a popular choice for business men involved in international trade. Most of all a well known Cyprus bank will always provide their customers with the facility of 24/7 internet banking, secure email connections and swift international wire transfers.
The lenient tax regulations of Cyprus and the easy banking solutions available there, make it a much valued destination in terms of offshore company formation. In Cyprus company formation is fairly easy and being a nation built on entrepreneurship, the Cyprus offshore companies enjoy a great deal of support from both the government and the banking sector. These benefits are very valuable for the trader in making some profit and being able to retain that amount for future ventures and investments.
Author Resource:
Jimmy Spartos is the author of this article on Cyprus Banking .
Find more information about Cyprus Company Formation here.
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