"International Business Companies" is not a legal term but when mentioned it usually refers to a private limited company, limited by shares which are usually held by non-residents of Cyprus and its business activities are outside Cyprus. They can take the form of Holding Companies, Finance Companies, Royalty, Investment Funds and Trading Companies.

• An IBC represents a separate legal entity.
• The registered address of the company should be in Cyprus.
• The number of shareholders in such a company may be from 1 to 50.
• Shareholders may either be Cypriot or foreign natural or legal persons.
• There is no minimum authorised share capital requirement.
• And finally, there should be at least one Director and one Secretary.

IBCs which are registered in Cyprus and are tax-resident in Cyprus enjoy various privileges.

• A Uniform Tax Rate of 10% on Taxable Profit
• There is a 4.25% Tax Rate if a company engages in ship management activities.
• There is a 0% tax rate if it is a shipping company.
• Gains from sale of qualifying titles (including shares) are tax exempt.
• Dividend Income is exempt from Cyprus Tax in most cases.
• There is No capital gains tax on disposal of property abroad.
• Tax losses can be carried forward indefinitely.
• There are No Controlled Foreign Company (CFC) rules.
• There are No Thin Capitalization rules.
• Profits from Permanent Establishment abroad are tax exempt.

• There are Group relief provisions between Cyprus companies.
• Companies can make use of Cyprus' Double Tax Treaty Network (reduced withholding taxes).
• Companies can have access to EU Directives (i.e. Parent/Subsidiary, Interest & Royalties Directives).
• Dividends, Interest or Royalties paid to non-resident shareholders are not subject to withholding taxes.
• There is a unilateral tax credit relief where no Double Tax Treaty exists.
• There is no capital gains or income tax upon liquidation. And lastly
• The Law provides for Favourable Company re-organization provisions.

Multilysis Services Limited through its associate legal firm, N. PIRILIDES & ASSOCIATES LLC, provides company registration in Cyprus and other foreign jurisdictions such as the BVI's, Channel Islands, Dutch Antilles, UK and Hong Kong and also advises on various matters relating to the incorporation process.