One Offshore Company Versus Two Offshore Companies

[manky]

Hi all,


I have next question:
Given 2 person, who work on the same type of business, let´s say they are Consultants that work for different clients.

They want to provide their services is by opening Cyprus Offshore (They reside out, but in the EU). The key point is:
Is it better if they just compose one single company for each one of them, or is it better if they just create one for the two of them? In terms of costs and profits?

I´ve heard that it does not save any money by creating one single company for two.

What´s your opinnion on this?


Thank you so much in advance!

 

[JohnLocke]

What's the point here? Why don't they just register a local company and pay the tax they have to pay but still consult a tax consultant to help them reduce it as much as possible?

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[Gediminas]

Hi,

Cyprus allows to disproportionate dividends distribution, so in principle, it is possible to form one company with two shareholders doing something different. That would allow saving some costs for set up and maintenance since such fixed costs as an address, corporate secretary, nominee director (if required), accounting and audit can be split between shareholders.

Nevertheless, most likely I would advise proceeding with two separate companies. First, because of the banking matters, potential compliance issues, second because of the risks related to activities (you would be responsible for your partner's liabilities since you would be operating through one company, i.e. your part of the funds would also be at risk.

Last edited: Mar 21, 2020
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