Company Re-domiciliation in Cyprus
Cyprus allows the re-domiciliation of Cyprus companies abroad and of foreign companies to Cyprus.
Why re-domiciliate a company in Cyprus?
There are several reasons why a company should re-domiciliate in Cyprus which we list below:
- One of the most appealing is the fact that the company continues trading in Cyprus, by maintaining its legal identity which it had established in the foreign jurisdiction in Cyprus. Continuity is therefore established.
- The foreign company dispenses with the requirement of being liquidated in the foreign jurisdiction and transferring its business and assets to a newly formed company. The formation of a new company and the transfer of business and assets abroad is a much more complex procedure.
- The Cyprus legal system is based on English law.
- It is advantageous from a tax perspective.
- Cyprus has an extensive double tax treaty network. Irrespective of a tax treaty being in existence, there is also unilateral tax relief.
- A Cyprus Company is subject to a low corporate tax rate of 12.5% whilst corporate tax is exempt in relation to dividend income, interest income and profits from a ?PE? in another jurisdiction.
- The liquidation of a Cyprus company is not taxed.
- A list of other tax related matters can be found here
What is the procedure in re-domiciliating a Company in Cyprus?
Prior to the application, it is advisable that a legal opinion is obtained from a lawyer in the company’s current jurisdiction regarding whether re-domiciliation of the company to Cyprus is allowed under the laws of that country.
Then, the company appoints a representative in Cyprus to deal with the re-domiciliation process in Cyprus. A lawyer can be appointed as the representative
The application must state several information and it should be supported by several documents.