Incorporating in Cyprus?

[mlc2009]

Hi,
As I'm a webmaster with a high turnover, it's time for me to become a ltd company. I run adult websites. A credit card processing company offered to set me up a company in cyprus so I can use their merchant account. Is this legal? I was told the corp tax rate is 10 percent there, so then I could take dividends and save a lot of money. surely too good to be true?

[borderreiver]

I think if all the directors of the company are UK resident, then HMRC will deem the company to be UK resident as well, regardless of where it was incorporated. Maybe if you can get a Cypriot on board as a director, it could work ...

[Fred Bloggs]

Seeing as you can run websites from anywhere, it would make the most sense to go and live in Cyprus then if you don't want to pay UK taxes?