How I Built a Full Cyprus Company Setup for Cheap! Real-World Example.

[lory]

icecold said:
Just wanted to share my setup, which I 100% pieced together from all the threads I found over in the Mentor Group Gold forums.
I'm not gonna dive super deep into every little detail, just gonna list the key parts, if you've got MG Gold access, you'll know exactly what's what.

Here's the breakdown...

First, I found a guy who hooks you up with nominees, they can do video verification, plus provide a utility bill and passport for your new director.
I hired my director for about €2,500/year. Pretty sweet deal for a full legit director if you ask me!

Then, for my Cyprus LTD, I split the ownership 25% each across four shareholders. Got some solid people for that too, only €500/year per shareholder.
No issues with video verifications either, even for meetings with banks or brokerage firms.

For the office, I rented a spot just outside Nicosia, pretty modern by Cyprus standards.
It's a standalone building with water, heating, electricity, internet, fully furnished with new office stuff, reception desk, carpets, logo on the door and everything.

A couple of the shareholders actually work out of there daily, and we also hired a lady to handle the phones.
Makes it look good when banks, tax authorities, or anyone else calls, they can easily reach “management.”

Total yearly cost for everything? Around €19,000, and that includes bookkeeping and filing the yearly reports.

As for payouts, we only do dividends, fully tax-free.
We hold quarterly meetings where dividends are distributed. Most shareholders leave the money in the company to keep it growing.

I personally pull out a dividend every quarter, no salary for me.

Dividends get paid out to AlexPCS and other OCT card providers, so you can spend the money easily at stores, ATMs, whatever.

Hope this gives a bit of inspiration if you're thinking about setting up something similar or just wanna get out of your home country and run a lightweight, tax efficient business that only pays corporate tax!
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Thanks for sharing, that's a pretty lean setup for the price.

Quick question: how's banking been with that structure? Any trouble getting accounts approved or keeping them open long term?

 

[turmpy]

how do you managed to get nominees you can trust?

 

[icecold]

plotoffshore said:
Do these only work for Cyprus, or are they nominees you've found that you can also insert into other companies if you want?
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You may use any company for this purpose.

myshufflemix said:
I'd consider whether it might make more sense to relocate to a tax-free country instead , or what's your current status?
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digital nomad, have no status anywhere, I'm almost a ghost.

redeye said:
I have great respect for the comments shared in this thread, especially for the original poster who has openly offered others a chance to learn from their experience. Make sure to do your homework and consult with professionals to get things right from the beginning.
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I totally agree

lory said:
Quick question: how's banking been with that structure? Any trouble getting accounts approved or keeping them open long term?
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very very difficult, but managed to have airwallex and currenxie account.

I can sense that this thread has stirred up some strong emotions and caused quite a bit of trouble.

Let me clarify that I have no financial interest in the setup discussed here, and I do not take on clients from this forum, despite what some of the now removed claims might have suggested.

I simply wanted to contribute to OCT based on what I've learned here. What others may think or assume about my intentions is, frankly, none of my concern. No one is forced to read my posts, if you don't like it, feel free to read something else or move on.

 

[daniels27]

@icecold thank you very much!

I am a bit late to the party. Was there any grounded warning that you may run into legal issues with such a setup or anything else that we need to be aware of when using such setup?

 

[ilke]

daniels27 said:
@icecold thank you very much!

I am a bit late to the party. Was there any grounded warning that you may run into legal issues with such a setup or anything else that we need to be aware of when using such setup?
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1. You do not have legal protections against the shareholders.
2. It is not legal to not disclose the UBO when there is one. Exercising 100% of control, even with 4 'shareholders' each holding 25%, is still being a UBO. Also mentioned by @CyprusLaw who has a very good understanding of this fact.
3. The cost is very high compared to even high prestige and reliable structures (e.g. non-resident SG Pte. Ltd.) and yet you continue to pay 12.5% without gaining any legal certainty (in fact, decreasing it, because it involves committing a crime).

 

[icecold]

ilke said:
1. You do not have legal protections against the shareholders.
2. It is not legal to not disclose the UBO when there is one. Exercising 100% of control, even with 4 'shareholders' each holding 25%, is still being a UBO. Also mentioned by @CyprusLaw who has a very good understanding of this fact.
3. The cost is very high compared to even high prestige and reliable structures (e.g. non-resident SG Pte. Ltd.) and yet you continue to pay 12.5% without gaining any legal certainty (in fact, decreasing it, because it involves committing a crime).
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And what you listed there is absolutely spot on.

daniels27 said:
@icecold thank you very much!

I am a bit late to the party. Was there any grounded warning that you may run into legal issues with such a setup or anything else that we need to be aware of when using such setup?
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There's a lot you need to be aware of, and you're welcome to open a thread about it in the Mentor Group forum, I'll be happy to provide further input there.