Relocate a Business to Cyprus
Relocate a Business to CyprusUpdated on Thursday 30th November 2017
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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.
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.
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.