• INTRODUCTION
• DEFINIION
• ADVANTAGES OF OFFSHORE COMPANIES
• PRE-INCORPORATION ENQUIRIES
• SPECIMEN OF BANK REFERENCE
• INFORMATION NEEDED FOR REGISTRATION
• FORMATION PROCEDURE
• EXCHANGE CONTROL
• PARTNERSHIP AND BUSINESS NAMES
• SPECIFIC TYPES OF COMPANIES
  CAPTIVE INSURANCE COMPANIES
  OFFSHORE BANKING UNITS (OBUS)

EXCHANGE CONTROL

The Central Bank of Cyprus is the only authorized institution exercising exchange control, under the Exchange Control Law. The approval of the Central Bank is required for any non-resident to become a shareholder, or for the transfer of any shares in an offshore company. Such approval is always given by the Central Bank either for offshore or shipping companies in bona fide cases. However Bank references as to the credit worthiness, financial character, respectability and business integrity of the beneficial owners of the shares are required.

The Central Bank of Cyprus in granting the Exchange control approval imposes the certain conditions, some of which are:

• the shares of the company must belong directly or indirectly, exclusively to aliens.

• The objects of the company shall be confined outside Cyprus

• The company will be considered as a non-resident company

• The company must derive income from abroad either from immovable property, royalties, commissions, investments of capital in bonds, shares, debentures or loans or income deriving from any business.

• The company will not obtain any finance from local sources

• The company must submit regularly copies of its balance sheet and profit & loss account

• The minimum authorized and paid up capital must be at least CYP 1000.00