Cyprus Companies (Limited Liability Companies) are commonly used as directors to international single entities or international tax structures for a number of reasons:
- Confidentiality of the Ultimate Beneficial Owner
- Protection of the Ultimate Beneficial Owner as the Cyprus company used is limited liability; i.e it can be closed down without implications to the shareholders & ultimate beneficial owners
- Low Company maintenance costs
- Governed by Common Law (in Cyprus we follow the Anglo Saxon system)
Other tax considerations:
- Remuneration of the Company director is taxed at 12.5% only and the dividends to its Ultimate Beneficial Owner are entirely tax free.
- Majority of expenses are allowable