Cyprus is without a doubt a very popular destination for business owners worldwide for a variety of reasons. Measures and strategies that the government has adopted enhance business activity through an excellent environment to both form and maintain business entities, and refreshed options when it comes to residence and employment in Cyprus. Here are presented some of the main reasons why Cyprus could be considered an ideal global business destination.
Easy and Straightforward Procedure to register a company
The procedure of incorporating a company is Cyprus is straightforward and given that all the necessary steps have been followed thoroughly, a private company limited by shares might be ready as fast as 7-10 working days.
Our Cyprus lawyers will guide you through the procedure of company incorporation. After we have collected some necessary documents from the client as part of our KYC (Know Your Client) policy, we may apply to reserve a name for your company with the Registrar. Before applying, we will conduct a search with the Registrar in order to ensure that the proposed company name is not too similar to an already existing company, as this is one of the basic criteria for the approval of the application regarding the company name. This application is usually approved within a couple of business days, provided that the accelerated procedure fee is paid. Following the approval of the company name, we may proceed with the application of incorporation of the company. This stage entails the submission of some documents that will be thoroughly prepared by us according to your needs, such as the Memorandum and Articles of Association, and forms regarding to the first officers of the company, its registered office etc. After the submission of the incorporation application, the registration of the company might be completed within approximately a week.
To find out more about our services regarding company registration, the benefits of registering a company in Cyprus, what the list of KYC documents that are stated above may include, and for a more detailed description the procedure of registration, click here.
Favourable Cyprus Tax Regime
The tax regime in Cyprus could not be excluded from the top reasons of why Cyprus offers a prosperous environment for business owners. The tax rate of 12,5%, one of the lowest in Europe along with capital gains tax and the succession tax exemptions are among the most attractive features for business owners.
Innovative Routes for Residence and Employment in Cyprus
Non- Eu citizens have various options to obtain residence and/or employment permits in Cyprus.
Companies of foreign interests
The Action Plan adopted by the government in 2021 might be an ideal mean for investors seeking to register a company in Cyprus and employ non- EU citizen individuals that are eligible to be employed by such companies.
Following the formation of the company as it is explained above, for the company to be considered as a company of foreign interests and employ non-Eu citizens under this Plan, it needs to register with the Business Facilitation Unit (BFU) that is operated by the Ministry of Energy, Commerce and Industry. The basic requirement for the registration procedure is an investment worth of Euros 200,000 at least in the form of either a deposit of this amount held by the company in a credit institution licensed by the Central Bank, or a purchase worth of this amount for the purposes of operating the company's business (e.g. office, equipment etc).
Third country nationals might be then eligible to apply to the Migration Department for residence and employment permit in Cyprus through the company of foreign interests as highly paid/ highly skilled employees.
For more details regarding the criteria for a company to be registered as a company of foreign interests and the application process with the Migration Department to obtain residence and employment permit through companies of foreign interests, please click here.
Citizenship for employees of companies of foreign interests
A very significant benefit for employees of companies of foreign interests is that they can apply for Cypriot citizenship under the recently revised route for citizenship through naturalisation. Normally, applicants need to have resided for 8 years in Cyprus before applying for citizenship through naturalisation; however, the updated law enables these employees to apply for citizenship after five or even four years of residence in Cyprus provided that they meet certain requirements, such as an adequate level of Greek language proficiency and sufficient knowledge of basic elements of the sociopolitical reality of Cyprus.
For more information about citizenship through naturalisation, please click here:
High Quality of Life
Apart from a great option for conducting business, Cyprus might also be an ideal place to live; Safety, family friendly environment, excellent education system, healthcare benefits and nice sunny weather are among the top advantages to consider when choosing not only a business destination but also a home for a family.
Our Legal Services
- Managing the procedure of company incorporation.
- Managing the procedure of registration of companies with the Business Facilitation Unit.
- Guidance and management in regards to the applications for residence and employment permits with the Migration Department as well as citizenship applications.
- Following up the application process after the submission of your application with the relevant authorities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.