INTRODUCTION
International Business entities conduct a wide and diverse range of business activities from their Cyprus base. The Government policy is to promote and enhance International Business activities with the aim to develop Cyprus as one of the largest International Business Centres worldwide.
INTERNATIONAL BUSINESS ACTIVITIES
Internationa Business activities in Cyprus include among others the following:
- Shipping and ship-management activities
The strategic position of Cyprus together with other tax and non-tax incentives provided have contributed to the success of the island as an established international shipping centre.
- Offshore banking
In the last decade a number of offshore banking units have established their business in Cyprus. They are allowed to provide banking services to non-residents and to international business entities operating from Cyprus.
- Captive insurance
During the recent years many captive insurance companies have registered in Cyprus mainly because of the important exemptions provided by the government including the relaxation from the minimum requirements for registration.
- Transit trade, reinvoicing and transfer pricing
Order can be placed and received from any country by a Cyprus international business entity, goods can be stored in Cyprus bonded warehouses and finally exported to any destination. Goods and services may be reinvoiced to take advantage of the Cyprus tax incentives.
- Personnel recruitment and training
Foreign nationals may be employed by a Cyprus international business entity to work outside Cyprus thus taking advantage of the tax exemption given by a number of countries if their nationals are paid by another country for their work abroad.
- Regional Headquarters
Multinational companies wishing to take advantage of the Cyprus strategic position may establish their regional offices in the Island.
- Holding Companies
For the above reason and for tax and other incentives, companies may wish to operate a holding company in Cyprus in order to exercise management and control of their group.
- Collection of Royalties
An international business royalty company can receive and pay royalties and be liable to tax at very favorable rates.
- Business consulting and services
Architecture, civil engineering, business consulting and many other services are currently provided by Cyprus offshore entities to Arabian Gulf, Middle East and North Africa countries.
Other business activities conducted by international business entities in Cyprus include:
- holding of property and securities
- electrical and mechanical engineering
- construction and engineering companies
- hotel ownership and management
- advertising and graphics
- trust and fund management companies
- investment companies
- computer hardware and software business
- repairs and maintenance of equipment and components.
