Cyprus through its expanding network of Double Taxation treaties and its generous tax concessions continuous to be one of the leading financial and commercial International Business Companies (IBC) centres in the world. It has already attracted more than 40,000 International Business Companies and this number is continuously rising. Furthermore, the geographical location of Cyprus as a business hub for Europe, Africa, the Middle East and Asia along with the high European-level standard of living as well as the high quality services and communications offered are extra attributes why so many companies base their operations in Cyprus.

M. Loucaides Ltd Chartered Certified Accountants has been serving International Business Companies ever since its formation, therefore, allowing its personnel to gain a tremendous amount of expertise for dealing with the requirements and needs of such companies.

Advising at the initial stage, M. Loucaides Ltd Chartered Certified Accountants determines the appropriate type of business to be formed. An International Business Company can be established in three forms:

• Limited Liability Company
• General or limited partnership
• International branch of foreign corporation

From there on, the firm will provide assistance with entity registration and with obtaining the approval for establishment of such entities. If the specific IBC wants a physical presence, then the firm will assist it with obtaining residence and employment permits for its expatriate personnel. The firm will also help the IBC to find appropriate office location and recruit employees. In addition, the firm will assist the IBC with its daily operations as well as with a wide range of financial and managerial advice.

Click here to download a pdf about incorporation of a Cyprus IBC.

 

 

M. Loucaides Ltd Chartered Certified Accountants believes in providing an audit that goes beyond the statutory requirements. The firm’s auditing service can offer the client the following:

• Financial statutory audit
• Internal audits
• Specific purpose audit
• Investigations

As independent advisors the firm provides value added advice in every audit effort it undertakes by assessing the client’s internal control structure to determine its effectiveness and based on the findings, the firm renders its opinion on the financial statements. The client’s management can rest assure that invaluable observations made during this testing will be brought to its attention and recommendations on how to act on them.

 

 

The firm offers the following services:

• Computerised bookkeeping service
• Setting up computerised accounting system
• Monthly or any other period chosen financial reporting on company performance
• VAT bookkeeping services
• Experience in International Accounting Standards and Generally Accepted Accounting Principles

M. Loucaides Ltd Chartered Certified Accountants keeps a close eye on any changes in International Accounting Standards and Generally Accepted Accounting Principles and advises its clients accordingly.

 

 

Taxation services not only include income tax but also:

• Value Added Tax
• Corporate Tax
• Capital Gains Tax
• Stamp Duty

Change is inherently constant when it comes to taxation, and laws on the subject are becoming ever more complicated and as a result increase apparent problems for businesses and organizations.

M. Loucaides Ltd Chartered Certified Accountants believes that taxation maters have to be continuously appraised. This is so that it can advise and prepare clients on the subject whether that is to fill their tax returns or assess a tax plan suitable for their measures to maximize their tax benefits and advantages, while minimizing their tax liabilities. Planning the clients tax payments on due days avoiding tax penalties and interest, will create favourable results on their working capital. Service also includes advice on international tax implications and matters that may derive from the use of double tax treaties.

With Cyprus joining the European Union retired expatriates from the UK may find the taxation rates in Cyprus advantageous from those from the UK. M. Loucaides Ltd Certified Public Accountants is in apposition to be able to assess and complete all relevant forms for tax advantages.

 

 

Management consulting services help business entities to assess their needs and requirements so that they can become more productive and effective. These can include:

• Working capital management
• Budgets and cash flow projections
• Design of computerised accounting systems
• Human resource management
• Feasibility studies for activities in Cyprus and abroad
• Design of costing systems
• Mergers and acquisitions consulting
• Business and share valuations
• Investment Planning
• Market research in conjunction with associate companies

M. Loucaides Ltd Chartered Certified Accountants believes that working closely with its clients on all assignments of this nature can achieve the maximum business results possible by saving costs and increasing productivity and profitability.

 

 

Through strategic alliances with leading law firms the firm can provide:

• Approval of Company and Business Names
• Formation of Companies
• Share and Trade Mark Registration
• Power of Attorneys
• Legalisation of Documents
• Other Services

The firm has these associations so that clients will meet all statutory requirements and provide full compliance.

 

 

THE CONCEPT OF TRUSTS GENERALLY

The various types of trust vary in complexity but they have one common fundamental feature. A “person” being either an individual or a company (“the trustee”) agrees to hold certain assets (“the trust fund”) in its name for the benefit of the other person (“the beneficiary”) on certain terms and with certain powers (which are usually set out in the Trust Deed). The assets comprising the trust fund are legally held and registered as owned by the trustee and the trustee is under a duty, enforceable in the Courts, to hold those assets and the income arising from them for the benefit of the beneficiary (ies).

The above relationship can be summarised as follows: The trustee has legal title to the trust assets and the beneficiary has beneficial or equitable title (it is the beneficial title which is of value when one is considering asset ownership)

 

THE CYPRUS INTERNATIONAL TRUST

The international trust is a trust whereby:

• The settlor is not a permanent resident of Cyprus
• The trust property does not include immovable property in Cyprus
• At least one trustee is resident in Cyprus (A Cyprus offshore company or partnership is considered as a resident trustee.)
• The nature of the Cyprus international trust could be “discretionary”

As the name suggests the discretionary trust allows the trustee to exercise a large element of discretion with regard to distribution of income and assets, and to choose from a large “pool” of potential beneficiaries. The selection of beneficiaries from the “pool” could vary every year.

The following benefits relate to Cyprus International Trusts:

 

• Income, gains and profits are exempted from income tax, capital gains tax, special contribution or any other taxes in Cyprus
• No estate duty or inheritance tax in Cyprus
• No exchange control regulations
• The same person can be the settlor, the trustee (through Cyprus offshore company, in which he/she can be the sole director and he/she can be the only beneficial owner of the shares) and also a beneficiary i.e. an individual could have directly absolute control and ownership of the trust fund
• An International Trust may form a Cyprus international business company, partnership or branch and obtain the benefits available to them
• An International Trust may carry out business in Cyprus subject of course to the laws of the country, which are imposed on the beneficiaries and not on the trust itself
• There are no reporting requirements in Cyprus for the International Trusts
• Trust capital received in Cyprus by a foreigner resident or retired in Cyprus from trusts not resident in Cyprus is not taxable on the trustee
• Dividends, interest or royalties received by an International Trust from a Cyprus international business company are not taxable and not subject to any withholding tax