If you have an established company, why relocate your business to Cyprus and apply for Cypriot company re-domiciliation?
Our specialist Cypriot corporate lawyers explain the benefits of re-domiciliation, the process and how we can help you.
Contact us
For expert legal advice on Cypriot non-domiciled status email us at[email protected] or book a consultation.
We speak Greek, English, Russian, Arabic and Bulgarian.
What is The Re-domiciliation of a Company?
Cypriot re-domiciliation involves transferring the legal base of an existing company to Cyprus. The company continues to operate as the same legal entity but on re-domiciliation, the company becomes subject to the laws of Cyprus and is a Cypriot company.
The re-domiciliation of a company to Cyprus is also referred to as a transfer of legal seat. As it involves moving the domicile of the company from its overseas base to Cyprus it is more wide-reaching in scope than setting up a branch or subsidiary business in Cyprus.
Our specialist corporate lawyers can help you decide if re-domiciliation is the best option for your company.
Who Can Redomicile Their Company to Cyprus?
Whether you are an entrepreneur with a start-up company, a long-established family business with one centre of operation, or a successful multi-national you can elect to redomicile your company.
The ability to redomicile is not linked to your company’s sector. Whether your business is tech and digital-focused or traditional manufacturing and sales, your company can relocate to Cyprus.
It does not matter if your company is already based in the EU elsewhere. The law on company domiciliation applies to all overseas-based companies, whatever the current country of domicile, provided the laws of your current foreign jurisdiction allow the company to be redomiciled and continue to exist as a company registered in a new jurisdiction.
Our specialist corporate solicitors will assess your company objectives, provide individual advice on the benefits of re-domiciliation to your business, and advise on the legal process to relocate your company to Cyprus.
Why You Should Redomicile Your Company
There are many reasons why you should consider redomiciling your company. For example, your base of operation may not enjoy the advantages of being within the European Union with its free movement of goods and people or the country where your company is based may be subject to adverse trading conditions that are holding back company growth or innovation.
Whilst setting up a subsidiary business in a new country or forming an entirely new company are two options to consider neither provides the business continuity of re-domiciliation.
The question to ask is whether your company’s existing legal base provides any short or long-term advantages that justify the setting up of a new enterprise or subsidiary company rather than wholesale re-domiciliation.
That question can only be answered by looking at your company and its needs. You also need to consider the law and trading regulations in your company’s current legal base and the advantages of an alternative jurisdiction. For example, a country with EU membership or a country with a trading agreement with a key target country for business growth.
Why You Should Relocate Your Company to Cyprus
Why Cyprus? Obviously, not just for the wonderful weather, golden beaches, the relaxed lifestyle, and the potential for you to settle permanently with your family in Cyprus – though those are all added benefits of re-domiciliation.
The key commercial draws to choosing to relocate your company to Cyprus are:
- Cyprus is an established member of the EU single market with the advantages of free movement of people and goods and services between EU member countries
- Internationally well-regarded with no barriers to trade or embargos
- Business-friendly with government initiatives to promote growth and ease of the re-domiciliation process. Liquidation of your company or new incorporation is unnecessary – making the relocation process legally seamless
- Visa and settlement options for business owners and key personnel
- Tax-friendly with potential company and individual tax savings
The Tax Advantages of Company Re-domiciliation to Cyprus
Your company accountant will want to drill down on the tax consequences of a company move before recommending company relocation to Cyprus.
Redomiciled companies in Cyprus and business owners enjoy:
- A corporate tax rate of 12.5%
- 0% tax on profits received from the disposal of securities or on profits from the sale of property or sale of shares held outside Cyprus
- A tonnage tax system for qualifying shipping companies
- Up to 80% tax exemption for qualifying income and expenditure from the R&D and licensing of qualifying intellectual property
- Tax treaties with third-party countries to avoid double taxation
- 0% withholding tax on dividends
- Non-domiciled individuals are exempt from tax on dividend and interest income for 17 years
Whilst the extent of the tax benefits of re-domiciliation will depend on the current company tax regime your business is subject to, it is equally important to look at the wider benefits of a company relocation, such as free movement within the EU, or the growth potential of moving to a country free from trade restrictions.
The Company Re-domiciliation Process in Cyprus
The Cyprus Companies Act provides a statutory framework for the re-domiciliation process.
Our specialist corporate lawyers will first check that your company:
- Is registered in a jurisdiction that allows company re-domiciliation
- The company Memorandum and Articles of Association authorises re-domiciliation
If the answer to both questions is yes, then the company relocation process involves:
- An application to the Registrar of Cyprus Companies to be registered as a continuing company in accordance with Cyprus company law, together with submission of all the relevant transcribed paperwork
- The issue of a Temporary Certificate of Continuation for the temporary registration of your company in Cyprus. During the temporary certificate, your company can operate in Cyprus and has 6 months to submit proof to the Registrar that the company has been de-registered from the overseas jurisdiction through the filing of a De-Registration Certificate
- The grant of a Permanent Certificate of Continuation to complete the legal aspects of the re-domiciliation process
How We Can Help
Our specialist corporate solicitors understand that your business needs help with understanding if re-domiciliation is the best option for your company and assistance with legal and practical issues.
Our team will work with your financial advisors, company accountants, in-house lawyers, and corporate lawyers in your current legal jurisdiction to ensure that your company re-domiciliation proceeds smoothly.
As a specialist company and commercial lawyers, we provide joined-up commercial legal services including:
- Company re-domiciliation advice and applications
- The essential Cyprus start-up requirements of registering the company for tax, VAT, social insurance and communicating with local authorities and professional bodies
- The obtaining of any necessary licences in Cyprus, including financial licensing and compliance
- Company compliance advice
- Commercial contract advice
- The purchase or lease of suitable commercial or industrial company premises
- Company and individual tax advice and tax planning
- Company business immigration advice and bespoke individual immigration, work visa, and settlement advice for business owners, key personnel and transferring employees
- Employment law in Cyprus
Contact us
For expert legal advice on non-domicile status in Cyprus email us at [email protected] or book a consultation.
We speak Greek, English, Russian, Arabic and Bulgarian.
The information provided above by C. Pilyugin & Co LLC is intended for general information purposes only and should not be construed as professional or legal advice in any sense. It is advised that readers should refrain from acting only on the basis of the above information without first obtaining legal or professional advice on the subject.
Please send an email to [email protected] or fill out the form below to book a consultation with us.