Undistributed Income - Cyprus vs Seychelles.

[kefth]

Hi,


I would like to know if there are surcharges on any undistributed income of a Cyprus Holdings or a Seychelles IBC.


Is it possible to leave the money/profits in the company as long as you wish without any implications?


I have read that accumulation of Income is permitted in a Seychelles Company. What does that exactly mean?


Thanks in advance for your help.

 

[tax-haven]

I have read that accumulation of Income is permitted in a Seychelles Company. What does that exactly mean?

I say, BS It dosen't matter what you have read. FACT's are only counting. Fact is, I have kept my money on a Seychelles IBC owned bank account in Cyprus for several years, never, never, had a single issue!


The same apply for my Cyprus company with a Cyprus bank account, I have been trading for years with this company without any troubles. I had to pay some substantial annum banking fees(roughly EUR 100) but that's not tax! I never got a single request from the bank nor the Cyp. authorities.

 

[kefth]

So if I understood correct, you can leave your profits in the company (without distributing the profits to the UBO) for several years without any consequences in both Cyprus or Seychelles company.


Can somebody double check that for me? It might be possible in Seychelles, but might not be for a Cypriot Company.


For example a Cyprus company can make loans, but there will be tax on a preset interest fixed by the government. A Seychelles company can make loans without any tax.


Thanks

 

[JohnLocke]

It's doable with a Cyprus company, you may simply need to register the company non resident which should not be an issue if it is just a Holding company you are looking for to establish. profits on interest earned are tax free in anyway, so the loan model should work perfectly fine for you.

 

[kefth]

It's doable with a Cyprus company, you may simply need to register the company non resident which should not be an issue if it is just a Holding company you are looking for to establish. profits on interest earned are tax free in anyway, so the loan model should work perfectly fine for you.

Thanks Admin for your reply.


Back to my initial questions though re accummulation of profits/income in the company for several years without distribution to the shareholders (no dividend payments).


Is that possible with a resident Cyprus Hodling company? Is it possible with a Seychelles company?


Thanks.

 

[JohnLocke]

Yes it is with both... I can't see where the issues should be. There is no law, tax or other regulation that prohibit you to leave your money / funds in those companies/entity's. For Cyprus you may face a 10% corporate tax if it is a resident company, if your company can be considered non resident no tax apply. For a Seychelles IBC there is no problem at all, no tax, no surcharges no fee's others than what the bank charge every year (between EUR 50 - 200).

 

[kefth]

Yes it is with both... I can't see where the issues should be. There is no law, tax or other regulation that prohibit you to leave your money / funds in those companies/entity's. For Cyprus you may face a 10% corporate tax if it is a resident company, if your company can be considered non resident no tax apply. For a Seychelles IBC there is no problem at all, no tax, no surcharges no fee's others than what the bank charge every year (between EUR 50 - 200).

My current setup is a UK subsidiary owned by a resident Cyprus Holding company. Dividends are tax free (from UK and from the CYpriot company me as the UBO) and there is no tax in Cyprus bcs the income is not sourced from Cuprus.


Based on my current situation, I was thinkg of it would be possible to leave the profits in the Cyprus holdings company without any surcharges, or it might be even better to setup a Seychelles IBC owing the Cypriot holding company for the following two reasons: 1) get more anonymity, 2) leave profits within the company without hassle.


In general, would be advantageous in setting up a third Seychelles company in my case as regards to anonymity/leaving funds within the company?


Thanks

 

[JohnLocke]

To hold the funds the most secure in regards to Anonymity is to either buy a Ready-Made Seychelles company which was registered before the new regulations applied so no one will know who the company owner is, or simply register a new Seychelles company, so only the CSP may know who the UBO is. Anyway, the company will need a bank account, so the bank will need to know the UBO, because of this, you will want to open the bank account either in Cyprus or if possible in Switzerland... there are ambiguous information out there(Google search) whether Swiss banks allow Seychelles companies to open an account any longer. I will personally soon be in Switzerland to get clarification about this and various other issues, will post back here.

 

[kefth]

To hold the funds the most secure in regards to Anonymity is to either buy a Ready-Made Seychelles company which was registered before the new regulations applied so no one will know who the company owner is, or simply register a new Seychelles company, so only the CSP may know who the UBO is. Anyway, the company will need a bank account, so the bank will need to know the UBO, because of this, you will want to open the bank account either in Cyprus or if possible in Switzerland... there are ambiguous information out there(Google search) whether Swiss banks allow Seychelles companies to open an account any longer. I will personally soon be in Switzerland to get clarification about this and various other issues, will post back here.

Thanks for your answer Admin.


Do you have ready-made Seychelles Companies for sale?


What is the exactly the anonymity advantage of a ready-made vs new Seychelles company, since in both companies the weakness lies within the bank account.


Thanks

 

[JohnLocke]

I speak about the Offshore company in the Seychelles not the bank account... you'r right in regards to the bank account.


There is a trick that can be used, however, I don't go an release it here.

 

[crosslink]

Do you have ready company in Seychelles? How much for this company?