Office Space and Virtual Offices
At Globalysis, clients can benefit from a full time office cost efficiently.
Fully furnished serviced offices for clients that demand the most cost effective office solution in a professional and stylish environment offering the following advantages:
- No start-up costs;
- No monthly running expenses;
- No long term commitments;
- Move in same day.
Includes all the following:
- Receptionist (Telephone answering in your business name)
- Internet connection
- Electricity and water
- Telephone system
- Air conditioning
- Common Expenses
- Utility Bill in the name of your company
Also Globalysis offer the capability of virtual office which includes everything you need to successfully run your business from anywhere.
Physical Presence and Substance
The key steps a company in Cyprus may take to establish or enhance its substance status in its jurisdiction of establishment are the following:
- the majority of directors are residents in Cyprus
- the board meetings and key decisions (or at least the majority of them) take place in Cyprus
- the meetings and decisions of the shareholders of the company are taken in Cyprus
- the directors are suitably qualified and experienced in the sector / industry that the company is operating in. Their tasks should at least concern (i) the decision making on the transactions the company performs and (ii) the proper completion of the transactions the company performs
- the company employs relevant employees with suitable experience. The number of employees employed depends on the value, volume and nature of the transactions the company is involved with. Such local employees are also substantially involved in local operations of the company and also in terms of the company’s interactions with the rest of the corporate group and clients
- the company is registered as an employer with the relevant social security state departments in Cyprus
- the accounting records are maintained and accounting work (including bookkeeping) is performed by local accountants
- the internal registers and books are held in Cyprus
- generally agreements relating to the company’s business or assets are executed in Cyprus
- the company maintains and operates bank accounts with local banks and local resident signatories
- the company has a minimum equity that is in line with its activities carried out (taking into account the assets used and risks incurred).
- The company is established in its independent and separate (rented or owned) office space or premised
- the premises the company is occupying are fitted with relevant equipment and is connected with appropriate infrastructure. These include PCs, fax machines, printers, reception facilities, independent IT environment etc.
- the company has independent local email address, website, telephone line and fax line.
If a company is found to be effectively managed and controlled from outside Cyprus (for lack of substance, or due to the decisions being taken by a foreign UBO, or due to the company being deemed to be established to collect intra-group income), the tax authorities of the countries where the income is being generated may take the position that the SPV is not a resident of its country of incorporation but instead is of another (the jurisdiction from where it is effectively controlled). The effect of this is that a corporation stands to face a substantially higher effective tax burden as well as investigation by the tax authorities.
Aside from the obvious banking, tax advantages and risk mitigation benefits established by having substance in Cyprus, many multi-jurisdictional groups and their employees have benefited from relocating key managers in Cyprus where they stand to benefit from significant incentives the Cypriot government has implemented in recent years for the attraction of key managers and high-net-worth individuals, such as the acquisition of citizenship on a fast-track basis and the establishment of the non-domicile regime where individuals can receive income from dividends, rent and interest totally tax free.