The Advantages of Having a Cyprus Shelf Company

theodion
May 29, 2012

Cyprus is a well-known finance center and it is popular for its tax regime and double tax treaties. It offers an attractive destination that is suitable for investors, businessmen and entrepreneurs. Numerous people look into the various ways with which they can invest in Cyprus. It is notable that there are several means to make investments in the country as it makes available a friendly environment that gives way to foreign investment. Also, its government is very supportive and positive to such deals. Many entrepreneurs choose to form their own company in Cyprus because it is undoubtedly one of the best ways to invest in the country. To make it possible, they should incorporate their companies and also forward various forms. An easy and simple method to make this possible is through acquiring a Cyprus shelf company.

Shelf companies or ready-made companies are pre-registered business entities. Such companies do not have any assets or liabilities. In addition, they have not yet conducted or performed any business activities. These shelf companies are commonly listed as limited liability companies. In other words, there is little difference between registering a new company and getting a shelf company. You will see that most of this difference is all about the amount of time that the company will be available to you. Aside from that, you will get the same benefits and responsibilities whether you choose to buy a Cyprus shelf company or register a new one.

Many people see the advantages of having an off the shelf company. This is especially true when they are in a rush to incorporate an offshore company in Cyprus. They may either have a great investment project which already needs to be executed at once or they are just beginning with a newly-organized business and are in the last stage of launching it. By purchasing a ready-made company, the transfer of ownership only takes place in a matter of days. After that, trading and doing business activities can already be done. If the company’s name is unfit with the new owner’s business in any way, it is possible to make a name change. For such cases, using a DBA or ‘doing business as name’ is recommended until the appropriate change of name has already taken place.

The Cyprus shelf company is available with company certificates. Once it is already paid for, documents such as memorandum of articles, shareholder certificate, and others will be handed. In addition, it is possible to open a bank account for the shelf company. it is beneficial to have a Cyprus bank account because it can hold different currencies and it gives access to advanced banking features. Safety is also not a problem with a shelf company. Upon acquiring the company, a declaration letter will be forwarded to the owner. This guarantees that the company has no liability and has never performed any business transaction yet.

There are also aged shelf companies. They are very advantageous because they bring about longevity. Many businesses prefer shelf companies that already have a history. With this kind of Cyprus Shelf Company, the owner will be able to participate in several corporate bidding activities. There are some jurisdictions that require a company to have a certain business age before it is allowed to operate. This requirement will be easy to meet through an aged shelf company. In addition, numerous bankers, clients, and associates believe that companies with longer history are secure and reputable. Also, an aged shelf company that is already six to ten years can apply for a bank credit in a more convenient and faster way. On the other hand, with a newly registered or months old company, it may be difficult to apply for a bank credit.

Those are the great things that are associated with shelf companies. If you are looking into establishing your own company and you want to start performing business activities at once, then a shelf company is perfect.