COMPANY FORMATION GROUP LTD.

CYPRUS

A Cyprus Offshore Company , must be owned by non-residents only, and carries on business exclusively outside of Cyprus.

Requirements for Cyprus Offshore Companies

1. Minimum issued and paid up Share Capital of C£1000 (approximately US$1500).
2. Registered Office/Agent in Cyprus is required – we can provide this service.
3. A Company Secretary must be appointed – we can provide Secretary.
4. Director can be individual or corporate. Nominee Directors permitted – we can provide this service.
5. Only registered (not bearer) shares permitted.
6. Annual audited financial statements must be submitted.
7. A Cyprus Offshore Company is permitted to set up an office in Cyprus to deal with the management of the Company. However, in this event the minimum paid up capital becomes C£10,000 (about US$15,000). If such office is established, it is not permitted to employ any Cyprus Nationals.

Taxation

At the present time, the Cyprus Offshore Company is subject to tax of 4.25% of net profits. However, it is considered likely that the rate for all Companies in Cyprus will be increased to 10% in the near future, as part of the tax reforms required to enable Cyprus to join the European Union.

Cost of Cyprus Offshore Company

Incorporation – including preparation and filing of formation documents and Government Incorporation Fee (assuming minimum Capital) - US$1,950

Registered Office for 1^st and subsequent years – US$975 p.a. including providing Company Secretary.

Additional Optional Services will be quoted upon request.

Important Note:

The above shall not be construed as professional counseling with respect to tax planning and structures. Every effort has been made to ensure its accuracy. Nevertheless, all information given must be verified at the time of Company Formation and/or request for provision of any Services. It is also subject to change without prior notice.