Business Activities
IBE's conduct a diverse range of business activities abroad from their Cyprus base including
- marketing of consumer goods,
- transit trade,
- holding of property and securities,
- Investment, Holding and Royalty Companies
- business consulting and services,
- distribution and repair of equipment,
- architecture and town planning,
- electrical and mechanical engineering,
- road and airport construction,
- hotel ownership and management,
- travel and tourism,
- personnel recruitment and training,
- advertising, design and graphics,
- maintenance of computer hardware and software
- patent and trademark registration,
- gathering and distribution of news,
- ship management and other services to shipping,
- general and captive insurance,
- financial services and
- international commercial banking.
In today's world there is a growing need for highly developed international business centres from where enterprises can
operate efficiently and securely worldwide. Cyprus possesses all of the necessary attributes to become one of the leading
centres in the world for commercial, financial and maritime activities. The island's geographical location, English legal
system, high quality of life, and low cost of living, combined with its excellent infrastructure and generous tax incentives,
create an ideal business environment.
International Business Companies (IBC)
International Trusts
International Branches
International Banking Units/Administered Banking Units
In accordance with the relevant provisions of the Banking Law of 1997, applications for establishing an International Banking
Unit (IBU) must be submitted to the Central Bank of Cyprus. Applications should be supported by relevant information and
documents which are prescribed, from time to time, by the Central Bank of Cyprus. Banking business licences are granted
subject to certain conditions, which depend on a number of factors, including the applicant bank's intended legal form
(i.e. branch or subsidiary) as well as its financial standing and international reputation.
In this respect, it should be noted that the term "International Banking Unit" ("IBU") is not a legal term. It is
a descriptive term used to denote those banks which are owned by non-residents and which, by the conditions attached
to their banking business licences, deal primarily with other non-residents and in currencies other than the Cyprus pound.
IBUs, being non-resident banks, are exempted from regulations which are connected with the application of the Exchange Control Law.
They are not, however exempted from prudential requirements embodied in the Banking Law.
Applicant banks which meet the Central Bank of Cyprus's eligibility criteria may also be allowed to establish themselves
as Administered Banking Units ("ABUs"). ABUs are required to carry on banking business in their own name, but their day-to-day
administration should be carried out, on their behalf, by another bank (the "administering bank"), which must be already
licensed by the Central Bank of Cyprus to operate in or from within Cyprus.
A foreign incorporated bank may also register in Cyprus a Representative Office the objects and business in general of
which are confined to the conduct of purely liaison activities between its Head Office abroad and its non-resident customers
i.e. persons who are not permanent residents of Cyprus.
The Central Bank of Cyprus's policies have developed over the years, a prime consideration always being the maintenance of
Cyprus as a reputable international financial centre. The Central Bank of Cyprus is, since 1982, a member of the Offshore
Group of Banking Supervisors which was set up with the encouragement of the Basle Committee on Banking Supervision. Cyprus
has always followed very closely the recommendations of the Basle Committee on Banking Supervision and has established
and implemented, right from the very start, effective supervisory standards and procedures.
Cyprus has attracted a substantial number of international banks, whose growth and results have been encouraging. The IBUs /
ABUs / Representative Offices in operation come from a variety of countries: Belgium, Bulgaria, Bahamas, Cayman Islands, France,
Germany, Greece, Jordan, Lebanon, Luxembourg, Romania, Russia, Switzerland, Ukraine, United Kingdom, USA and Yugoslavia.
Details on the establishment and operation of International Banking Units / Administered Banking Units /
Representative Units in Cyprus may be obtained from Nexia Poyiadjis.
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