Relocating Your Business to Cyprus: A Comprehensive Guide
Cyprus has been traditionally a favourable destination for Business Relocation. Find briefly below the most basic information regarding this relocation that can be helpful to you and for more additional information contact us directly.
If you want to relocate your business to Cyprus you have the following options:
Options for Cyprus Business Relocation
- Establish a new business in Cyprus.
- Transfer your existing business in Cyprus.
- EU nationals have a third option: Execute a cross-border conversion of their registered business.
Cyprus is renowned for its low corporate tax rates, boasting over 50 Double Taxation treaties. As an EU member, Cyprus ensures human rights and environmental protection. The country ranked 54th in the 2020 World Bank Group Doing Business Report.
Starting a Business in Cyprus
- Register a Company with the Cyprus Registrar of Companies.
- Popular business structure in Cyprus is the Limited Company (Ltd) and the Limited Liability Company (LLC).
- Legislation: The legislation governing the Cyprus Companies is the Cyprus Companies Law (Cap 113).
- Minimum recommended share capital: EUR 1,000.
Rules Based on Nationality:
- EU nationals have specific regulations.
- Third-country nationals with a company share capital of at least EUR 200,000 can benefit from the Business Facilitation Unit (BFU) scheme.
- Companies with lesser capital fall under general entry rules.
Details for Cyprus-registered Private Liability Companies:
- A single individual can be both the director and sole shareholder.
- Corporate tax: 12.5%.
- Dividend payments are not taxable.
- Companies must have a company secretary.
Steps to Register a Company in Cyprus:
- Choose a unique name.
- Draft the Memorandum and Articles of Association (M&A) and file with the Registrar.
- Open a bank account and deposit share capital.
- Appoint directors and secretary.
- Submit all documents to the Registrar of Companies.
- Register for tax, VAT, social insurance, and pensions.
Branch of a Foreign Business in Cyprus
A branch is an extension of an overseas company, retaining the same name and services.
How to Set Up a Branch
- Name approval from the Registrar of Companies.
- Submit parent company’s original M&A to the Registrar.
- Provide a parent company report.
- Information on the parent company’s representative in Cyprus is required.
Transferring a Business from another EU Country to Cyprus:
EU nationals can:
- Establish a new local company.
- Set up a European Company Societas Europaea, “SE” .
- Execute a cross-border conversion of their existing company.
European Company (SE) Overview:
- SE operates across the EU under unified rules.
- Registration requires the “SE” abbreviation alongside the company name.
For all the requested details visit the Registrar of Companies.
This is the process where a company from one EU member state transfers to another. Cyprus has permitted this since 2006.
Employee Relocation to Cyprus:
- Different regulations apply to EU and third-country nationals.
- Businesses must register with social insurance and the general health system (“GHS”).
EU Nationals in Cyprus:
EU nationals enjoy unrestricted work and residence privileges in Cyprus. Regulated professions (e.g., doctors, lawyers) need to liaise with local professional bodies for licensing.
This guide is a brief overview of relocating a business to Cyprus. If considering such a move, further detailed consultation and advice from experts is recommended. For the rights of EU workers across the EU, see the brief and informative “Moving & working in Europe” from the European Commission:
Third country nationals
Starting from January 2022, under the BFU guidelines, staff members of companies with foreign ties can seek Cyprus citizenship after a 5-year tenure. This duration shortens to 4 years if they can validate their proficiency in Greek.
Employees who have worked legally in Cyprus for 7 years can apply for citizenship.
Moreover, employees from non-EU nations have the opportunity to invest in properties, such as homes or land, in Cyprus.
Our firm of legal professionals can give you expert help and advice on all stages of relocating your business to Cyprus. We offer professional services for registering all types of companies from the Cyprus company to the SE and relocating your employees from your country of origin to Cyprus.
For more information contact us directly.