With an advantageous corporate tax regime, most notably a corporate tax rate of 12, 5% and a range of double-tax treaties, it is no surprise that many businesses opt to structure their corporate operations through a Cyprus company.
Cyprus law provides for the transferred of the registered seat of companies to and from Cyprus, subject to the fulfilment of a number of requirements, allowing for companies registered outside of Cyprus to transfer their seat and operations to Cyprus.
This procedure is subject to the foreign company being in good standing and for its constituting documents to allow for a transfer of seat to another country.
An overseas company may apply for its registration as a continuing entity in Cyprus, under its existing name or under proposed new name, which is acceptable by the Registrar of Companies. Such an application must be accompanied by the company’s constituting documents, details of the company’s good standing, business activities, shareholders and officers.
A lawyer practising in the company’s original jurisdiction will need to confirm that a transfer of seat is permissible under the laws and regulations of that country and that the consent of the members of the company was duly obtained.
Once all the required documents have been submitted to the Registrar of Companies, a temporary Certificate of Continuation will be issued, confirming that the company is legally incorporated and operating in Cyprus.
The Company will then need to submit evidence from the overseas jurisdiction that it is no longer registered in that jurisdiction before the completion of the process and issuance of relevant certificates.