How dangerous is having Nominee Director for Cypriot company?

[Rod1]

I agree with the answers given to you so far but, prior to those questions, you should figure out whether Cyprus is the right jurisdiction for you.
What is your objective? Tax minimisation or anonimity or what?

I am a EU tax resident, and I set up a CY LTD back in 2013 and I am now quite skeptical on Cyprus. The only situation in which I think Cyprus has a value is if you are a resident of MENA/ Former Soviet Union and you are looking for a jurisdiction where it is somewhat easy to get residence permit.

Otherwise:
- Tax-wise it is not great-not terrible (there are cheaper jurisdictions even within the EU)
- Bank-wise, I would never hold more than 100k in Cyprus. The banking system is hiding huge amounts of bad debts under the carpet, FBME has gone belly up, Bank of Cyprus is basically a Ministry disguised as a bank. Greek banks are generally big question marks...
- Cost-wise it is more expensive than others
- Professional-wise it is quite a disaster (consultants, banks etc. generally unprofessional)
- they communicate with all EU tax authorities, so if you are European, anonimity is non-existant

Hi Mark. Are there any providers you would recommend? I have begun talking with Chambers Law and with PKCY. They both seem professional, but they are not on the list above. They use an outsourced provider of Directors. I will need to find out who that is.

 

[Rod1]

You want someone who is licensed as an ASP: Cyprus Securities and Exchange Commission | APPROVED ASP

They should be licensed for All activities or, at the very least, for The undertaking or provision of the service of managing companies [section 4(1)(b)(i)-(b)(vii) of the Law].

@Sols , Thank you so much for this. There are many on this list - as per my question to Mark, are there any you would recommend?

I have a similar concern to the thread opener. If I put my life savings in a brokerage account (I trade for a living) via a Cyprus company:
1. I trust the brokerage company or companies - US and Aus firms.
2. Can I trust the bank when I am moving money TO and FROM the brokerage accounts.
3. Mostly, can I trust that the Cyprus nominee Director can't access those bank and brokerage accounts?

Regards
R

 

[Mark Ross]

Hi Mark. Are there any providers you would recommend? I have begun talking with Chambers Law and with PKCY. They both seem professional, but they are not on the list above. They use an outsourced provider of Directors. I will need to find out who that is.

Not really. Both my former and my current accountants are mediocre.

 

[cyprus123]

Most providers in Cyprus are trustful and reliable. You will not have any issue with your nominee director, just check with the official statistics (0 to 2 cases per year of such crime with more than 200k companies in Cyprus). More important is to choose a good broker, I would also split the money between minimum 2 broker firms, one in US and one in Switzerland. In case of a bigger wealth (7 digits) also in Singapore.

 

[ilpablo]

I agree with the answers given to you so far but, prior to those questions, you should figure out whether Cyprus is the right jurisdiction for you.
What is your objective? Tax minimisation or anonimity or what?

I am a EU tax resident, and I set up a CY LTD back in 2013 and I am now quite skeptical on Cyprus. The only situation in which I think Cyprus has a value is if you are a resident of MENA/ Former Soviet Union and you are looking for a jurisdiction where it is somewhat easy to get residence permit.

Otherwise:
- Tax-wise it is not great-not terrible (there are cheaper jurisdictions even within the EU)
- Bank-wise, I would never hold more than 100k in Cyprus. The banking system is hiding huge amounts of bad debts under the carpet, FBME has gone belly up, Bank of Cyprus is basically a Ministry disguised as a bank. Greek banks are generally big question marks...
- Cost-wise it is more expensive than others
- Professional-wise it is quite a disaster (consultants, banks etc. generally unprofessional)
- they communicate with all EU tax authorities, so if you are European, anonimity is non-existant

Hi, which is the best choice in your opinion?