Why Re-Domicile to Cyprus?
Recent developments within the Eurozone have prompted many companies to seek a jurisdiction offering greater tax incentives and fewer capital control restrictions. Cyprus stands out for its network of more than 40 double tax treaties — delivering meaningful tax relief — combined with a mature, common law-based corporate framework and a competitive corporate tax rate.
The Legal Framework
With effect from 2006, an amendment was made to the Cyprus Companies Law, Chapter 113 of the Statutes of the Republic of Cyprus, introducing the concept of re-domiciliation. Under the amended Law, foreign companies may be re-domiciled into Cyprus, and Cyprus-registered companies may be re-domiciled abroad.
A foreign company registered in a country whose laws permit re-domiciliation may apply to the Registrar of Companies in Cyprus to be registered as a continuing company under the Companies Law, Cap. 113. The same principle applies to a company incorporated in Cyprus that wishes to transfer to another jurisdiction. In either case, the company remains registered in its country of origin while it operates in the new jurisdiction during the transitional period.
The Temporary Registration Procedure
Once the Registrar of Companies is satisfied that the lodged documents comply with the Law, the Registrar certifies that the foreign company is temporarily registered as a continuing entity in Cyprus. From that point, the foreign company is treated as a legal entity duly incorporated under the laws of Cyprus and temporarily registered in the Republic.
Timeframe and Completion
Within six months of the issuance of the temporary registration certificate, the foreign company must present to the Cyprus Registrar evidence that it has ceased to be a company registered in the country of initial incorporation, or that its registration in the foreign country has been cancelled. This document — usually called the Certificate of Discontinuance — must be provided duly apostilled. Upon submission, the re-domiciliation is finalised and the company continues as a fully registered Cyprus entity.
How ASC Can Help
ASC’s team guides clients through every stage of the re-domiciliation process. We assist in preparing all necessary supporting documents, advise and guide the client throughout the procedure, submit the application to the Registrar of Companies, and monitor its status through to completion. Contact us to assess whether re-domiciliation to Cyprus is right for your company.