The Council of Ministers of the Cyprus Republic has approved on 15th October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”.
The Strategy is a very important initiative towards attracting both international investments and talent. The existing investment policy has been radically reviewed, broadened and simplified to include a series of actions and reforms in several areas of intervention, aiming to enhance Cyprus’ position as an international high-growth business centre.
The careful and thorough planning ensures that the benefits derived from the successful implementation of the Strategy will significantly contribute to redefining the Cyprus growth model.
As of 1st January 2022, the current “Fast Track Business Activation Mechanism” will evolve into the “Business Facilitation Unit (BFU)”. The Unit will be the single point of contact for foreign companies.
The purpose of the new unit will be the fast and efficient processing of requests received from foreign companies for the establishment of a company in Cyprus or the expansion of activities of existing companies.
The Registration of a foreign company to the register of companies for foreign interest provides the rights to the foreign Companies to employee national from third countries under specific criteria such as an Original contract of employment, of at least two years of duration, with the minimum gross monthly salary of €2500 is required as well as a Title deed or a rental agreement of a house/apartment regarding the employee’s and his/her family accommodation in Cyprus is required.
In addition, the revised criteria for the establishment of a foreign company in Cyprus has been amended with more attractive requirements for the interesting investors who wish to establish the business in Cyprus. For example, the new regulation does not require any more the deposition of a specific capital into a Cypriot bank institution for a foreign company to be entitle to employee nationals from third countries for its business activities
In particular, an eligible business must meet the following criteria:
- The majority of the company’s shares are owned by third-country nationals.
*It is noted that in the event that the percentage of the foreign participation in the share capital of the Company is equal to or below 50% of the total share capital, the Company is eligible when this percentage of the share capital represents an amount equal to or greater than the amount of €200,000.
- Public companies registered on any recognised stock exchange.
- Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
- Cypriot shipping companies.
- Cypriot high-tech/innovation companies*
- Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
- Companies of whom the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.
* An enterprise qualifies as ‘High Technology Company’ if:
(a) it is already established and has a presence in the market, and
(b) it has a high level or experimental R&D intensity, and
(c) it developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.
- The foreign company shall rent and/or buy an offices place in Cyprus for their activities
- Tax clearance is required for existing companies
Our law firm can assist you to the fast and efficient processing for the establishment of a foreign company in Cyprus or the expansion of activities of existing companies in Cyprus:
- Provision of services relating to the establishment of businesses:
- Approval of company name and incorporation of a Cypriot company
- Registration in the Employers’ Register (Social Insurance Services)
- Entry in the Tax Register for Indirect Taxation (VAT) and Direct Taxation (Tax Department)
- Advice regarding the necessary permits for the activation and establishment of businesses in Cyprus:
- Guidance and advice for the development of a business plan,
- the guidance and advice on necessary licensing,
- the registration of the business entity and / or the trademark of the business
- the recruitment of employees through our associates
- the renting and/or purchase of an office place in Cyprus
- Tax consulting and many other related issues.
- Registration of companies in the Register of companies of foreign interests
- The procedure to register the foreign company to the Civil Registry and Migration Department (CRMD) in order to employ nationals from third countries.
- Preparation of all required documents and/or employment agreements For more information and advice regarding the establishment and/or relocation of foreign companies in Cyprus and related issues, do not hesitate to contact us at info@infinitum.law
The information provided on this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on the article are for general informational purposes only.