Cyprus Law permits the so-called “re-domiciliation” process of allowing a company to transfer its “seat” of incorporation into Cyprus, in accordance with Companies (Amendment) Law of 2006, Law No. 124(I)/2006) (the “Law”).
This law provides a major advantage for a foreign company to enable it to transfer to Cyprus and continue its operations.
What is a re-Domicilliation process?
Re-domiciliation is the process through which a company can shift its domicile from one jurisdiction to another, by changing the country under whose laws it is registered, without losing its corporate identity.
This process provides a solution for the company to continue its activities and not to be liquidated and incorporated from scratch in a different jurisdiction. This allows the existing company to transfer its registered office and address and acquiring all the benefits of the new country.
On a European level, the re-domiciliation of companies within the EU is not prohibited however, Cyprus is included in the list of few countries that allow the re-domiciliation of third-country companies (Non-EU) into the Republic of Cyprus.
Why Re-Domicile to Cyprus?
· The foreign company continues to maintain its legal identity;
· Cyprus is a member of the European Union;
· Cyprus has one of the lowest corporate tax rates in Europe;
· Tax-exempt dividend income - (less stringent regulation and scrutiny);
· There is no withholding taxes on payment of dividends, interest and royalties to qualified recipients;
· There is no taxation on profits from the sale of securities;
· There are widespread double tax treaties in force;
· There is a full adoption of the EC Directives.
Are there any restrictions?
Any foreign company that intends to re-domicile in Cyprus or abroad should not have started any proceedings for its dissolution or have any pending court orders against it.
What is the procedure to re-domicile into Cyprus?
The process to re-domicile a foreign company to Cyprus can be undertaken by Ergoserve Consulting Limited, from the preparation and submission of documents for the Courts of Cyprus and the Registrar of Companies, to the final step being the issuance of Permanent Certificate of Continuation.
Why we should consider this process?
Cyprus’s unique tax and regulatory advantages have brought it to the forefront of vehicle jurisdictions for financing, restructuring, holding, investment and trading. All of these advantages are available to your non-Cyprus company after re-domiciliation to Cyprus.