Question about Cyprus non-resident company

[John Andrews]

Hi,

if I register a non-resident company in Cyprus (offshore), would I have to do/pay for audits at the end of each year? What about accounting?

Also, can a Cypriot resident (holding) company own a Cypriot non-resident (operational) company through a nominee shareholder (+director)?

I'm working on a web hosting service and plan is to have as less as KYC as possible. Since I don't want to keep users data MOSS is out of the equation therefore incorporating within EU (as a resident company) is not an option.

Thanks

 

[Sols]

if I register a non-resident company in Cyprus (offshore), would I have to do/pay for audits at the end of each year? What about accounting?

Yes, to both.

Also, can a Cypriot resident (holding) company own a Cypriot non-resident (operational) company through a nominee shareholder (+director)?

Yes. Nominee not necessary. Just adds paperwork.

I'm working on a web hosting service and plan is to have as less as KYC as possible. Since I don't want to keep users data MOSS is out of the equation therefore incorporating within EU (as a resident company) is not an option.

Cyprus is in the EU. Even if your company is non-resident for corporate income tax purposes, it still has to comply with EU/Cyprus VAT law. Not doing so would make your accountants or auditors very unhappy.

Technically, anyone selling into the EU (even from a non-EU/EEA company) should be charging VAT. Many still don't, though, and are still getting by for now.

 

[John Andrews]

Thanks for the explanation. However, I don't understand how Njalla (and similar services, such as Mullvad VPN) seem to do it? They keep no customer data yet bill via PayPal and through an entity in Cyprus (or from a company in Sweden).

 

[John Andrews]

Thanks for the explanation. However, I don't understand how Njalla (and similar services, such as Mullvad VPN) seem to do it? They keep no customer data yet bill via PayPal and through an entity in Cyprus (or from a company in Sweden).

Does no one have an answer to this?