As a member state of the European Union since 2004 and with a solid tax and legal system set in place, Cyprus has more than three decades of an international business hub experience. These make the island an attractive jurisdiction for a business entity to relocate. In this article, our lawyers in Cyprus briefly explain how to relocate a business in Cyprus and the benefits that come along with such relocation.
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The inward re-domiciliation regime in Cyprus
The re-domiciliation procedure in Cyprus for foreign companies is governed by the Cyprus Company Law, Cap. 113. The law enables a business to transfer its registered office inside, as well as outside of the country. Our Cypriot lawyers can provide further details on this legislation.
The re-domiciliation process in the island is quite straightforward. It is not necessary to start a company from scratch from somewhere else. Also, foreign companies are able to do that without winding-up their legal entities in their countries of origin.
Briefly, the re-domiciliation procedure for foreign companies into Cyprus consists of the following:
- The foreign company applies for the registration as a continuing legal entity in the island;
- Providing the Registrar of Companies in Cyprus with the documents which prove, among others, that the business is in good standing in its country of origin;
- An affidavit of a Director of the foreign business has to be prepared. Our attorneys in Cyprus can offer more details about this document;
- The Registrar of Companies issues a temporary Certificate of continuation;
- Next, the Registrar of Companies issues a final Certificate of Continuance in the country.
Our law firm in Cyprus is committed to providing its client with the greatest quality of service regardless of the field or business they work in. Our legal team is made up of attorneys with experience in a wide variety of legal fields and they are prepared to offer clients individualized counsel and services, all tailored to their needs.
Why relocate a business in Cyprus?
Cyprus presents many advantages for companies which relocate here. Among them, we mention:
- One of the lowest corporate income taxations in the EU: only 12.5%;
- It offers an exemption for dividend participation;
- It provides an exemption from tax on profits which derive from the securities disposal;
- There is no withholding tax;
- There are no succession taxes;
- It levies no taxes on capital gains, with certain exceptions. Our lawyers in Cyprus can provide you with the exact information on what these exceptions are;
- Other advantages. Upon request, we can fully inform you on what these other advantages consist of.
If you would like to learn more about the re-domiciliation of companies in Cyprus, or if you need help with relocating your business here, please get in touch with our Cypriot law firm.