How to establish Cyprus company for Norwegian trading company?
- Thread starter nastathin
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This transaction can indeed be difficult since you will face complications with your local tax authorities, even if you sell the Norwegian company for let's say €1 then the Tax auth. will estimate what the company really is worse based on turnover and goodwill. It may be different in Norway so I would suggest you address this question to a local tax advisor (one of the big brands) they will properly know what to do.
Alternative, you can invoice your Norwegian company from the Cyprus Holding (Trading) company, but you will fall under the Transfer Pricing regulations which are very complicated. That said, then it︀ all depends on how much money we speak and the size of the Norwegian company.︁
Depending on some of the answers that may be the outcome of the above it︂ would also be possible to make some more sophisticated setup which in certain cases can︃ help to prove that the two companies (Cyprus & Norwegian) are not related to each︄ others nor the ownership so to avoid any Transfer Pricing regulations.
I would recommend you︅ to get in touch with a local tax advisor or even tax lawyer to help︆ you, also you can submit a ticket to us and we may look into it.︇
For the future and to other new businesses, then it is always good to plan︈ your company setup before you start trading, it is always more complicated (if at all︉ possible) and more expansive to do changes to the company structure later as it is︊ the case above! The problem we realize is that most often a startup / new︋ business don't have the money in the beginning or simply not want to spend that︌ much before it seems the company is running stable.
Alternative, you can invoice your Norwegian company from the Cyprus Holding (Trading) company, but you will fall under the Transfer Pricing regulations which are very complicated. That said, then it︀ all depends on how much money we speak and the size of the Norwegian company.︁
Depending on some of the answers that may be the outcome of the above it︂ would also be possible to make some more sophisticated setup which in certain cases can︃ help to prove that the two companies (Cyprus & Norwegian) are not related to each︄ others nor the ownership so to avoid any Transfer Pricing regulations.
I would recommend you︅ to get in touch with a local tax advisor or even tax lawyer to help︆ you, also you can submit a ticket to us and we may look into it.︇
For the future and to other new businesses, then it is always good to plan︈ your company setup before you start trading, it is always more complicated (if at all︉ possible) and more expansive to do changes to the company structure later as it is︊ the case above! The problem we realize is that most often a startup / new︋ business don't have the money in the beginning or simply not want to spend that︌ much before it seems the company is running stable.
Yes it would have been recommended to have had the Offshore / Cyprus holding company in place first.
Since I am new in this forum, I don't have any idea on that matter since it was a little bit of confidential. Why would not ask for a friend who knows about this kind of business.
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