Cyprus + UAE company

[Sols]

Why do you say it? could you elaborate? I've seen a lot of people here suggesting this set up.

In the case of Cyprus, it's a waste of time and money because Cyprus does not care. They don't even bother people who form offshore companies with themselves as directors and shareholders.

Setting up and office and hiring people in Cyprus is for when you want the opposite: when you want the company to be tax resident in Cyprus. This can be useful if the UBO lives in a jurisdiction with high taxes and aggressive tax authority. In the case described here, it adds no value (just costs and taxes).

 

[BasedOperative]

In the case of Cyprus, it's a waste of time and money because Cyprus does not care. They don't even bother people who form offshore companies with themselves as directors and shareholders.

Setting up and office and hiring people in Cyprus is for when you want the opposite: when you want the company to be tax resident in Cyprus. This can be useful if the UBO lives in a jurisdiction with high taxes and aggressive tax authority. In the case described here, it adds no value (just costs and taxes).

What I meant is that some people use an offshore company to receive money from clients, and then use a separate Cyprus company (or EOR) to hire themselves in order to separate the physical service delivery from the offshore company, thus reducing the PE risk.

This way the two companies interact as independent contractors and no work is physically done in Cuprus by the offshore company itself (but by a separate CY entity or an EOR)

 

[Thomas67]

This determines everything. Do this and you're pretty much setup

About this (company’s management and control documented as UAE-based as much as possible) and aside the board meetings in UAE, don't you consider it could be an issue to have the entire revenue generating activity conducted from Cyprus? Or is it from your argument that Cyprus wouldn't care much but the approach likely couldn't be transposed in another country?

 

[BasedOperative]

About this (company’s management and control documented as UAE-based as much as possible) and aside the board meetings in UAE, don't you consider it could be an issue to have the entire revenue generating activity conducted from Cyprus? Or is it from your argument that Cyprus wouldn't care much but the approach likely couldn't be transposed in another country?

My concern as well

 

[GPT]

Not sure about that. Google Abramovich + Blue Ocean Yacht Management

Fair comment yet do not forget Abramovich being high profile and that its not unlikely other jurisdictions used influence to force Cyprus to look into Blue Ocean.

I highly doubt TO fits that profile.