Cypriot law allows for a so-called “re-domiciliation” process, which allows a company to transfer its “place” of incorporation to or outside of Cyprus in accordance with the Companies (Amendment) Law of 2006, Law No. 124(I)/2006) (“Law “).
This law gives a great advantage to a foreign company that can transfer its domicile to Cyprus and then possibly to any other European country.
What is the process of redomicillation?
The redomiciliation of a company is also known as “relocation”, which refers to the process by which a company transfers its place of incorporation into and out of a jurisdiction. The Company continues to exist in accordance with the laws of the new jurisdiction in which it transfers its residence, and ceases to exist in accordance with the jurisdiction of its registration.
It is noteworthy that this process gives the company the decision to continue its existence, and not to be liquidated and established from scratch in another country. This allows an existing company to transfer its legal address and address to another jurisdiction, acquiring all the benefits there.
At the European level, the redomiciliation of companies in the EU is not prohibited, and each Member State has its own strict rules for the redomiciliation process. However, Cyprus is on the list of very few countries that allow the re-domiciliation of companies from third countries (non-EU) to and from the Republic of Cyprus.
Re-registration to Cyprus
Undoubtedly, Cyprus attracts many foreign investors and international traders as they get many benefits by registering a Cypriot company or moving their existing company to Cyprus.
Below are some of the main benefits:
- The foreign company continues to retain its legal personality;
- Cyprus is a member of the European Union;
- Cyprus can be used as a key to transfer a foreign company to any other European country;
- Cyprus has one of the lowest corporate tax rates in Europe;
- Non-taxable income in the form of dividends (less strict regulation and control);
- No withholding tax on dividends, interest and royalties;
- No tax on profits from the sale of Securities;
- Widespread double tax treaties are in place;
- There is a full adoption of EU directives.
What is the procedure for changing residence in Cyprus?
The process of re-registration of a foreign company in Cyprus is simple from a practical point of view, if there are appropriate instructions.
A lawyer is an integral part of this process as it is necessary to prepare and file documents both with the courts of Cyprus and with the Companies and Officers Registry Department (the “Registrar”).
The procedure for re-registration of a foreign company in Cyprus is divided into the following parts:
- Сompany name approval;
- Application for redomiciliation of a foreign company to Cyprus and submission of all supporting documents;
- Issuance of a temporary certificate of a foreign company;
- Issuance of a permanent certificate of continuation.
Are there any restrictions?
For a foreign company that intends to change its place of residence in Cyprus or abroad, it is of the utmost importance not to start any dissolution proceedings or have any pending court orders against it. If any of these exist, then the redomiciliation procedure may not be authorized by the Registrar.
The above is for informative purposes only. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information. For more advice, contact us at the contacts listed on the site.