Relocating a Company to Cyprus has become more attractive through the introduction of the framework known as the Fast-Track Business Activation mechanism. This mechanism has been approved by the Cyprus Government, to promote and attract foreign business relocation in Cyprus.
Main Benefits for the fast track mechanism
Apart from the assistance in the setup and registration of the Company in Cyprus with the various institutions (Social insurance, VAT, Tax, Registrar of companies and etc.) the additional benefits are listed below ones:
- The employment of Non-EU employees can be achieved in more favorable manner. The criteria for eligibility to employe third-country (non-EU) nationals under more favourable terms are analysed below.
- The time frame for obtaining necessary residency and or/ employment permits is relatively faster.
Major criteria for eligibility
- Businesses which are interested to join the said scheme shall demonstrate positive contribution to Cyprus economy. The financial criteria are listed in short points below:
- For a new Company there is a requirement to submit a reliable 5-year business plan identifying the company's goals, activities and strategy illustrating growth potential.
- If the existing companies are wishing to participate, these shall demonstrate that they have achieved already a minimum turnover of €500.000 per year for 3 out of the last 5 years of operation.
- Most importantly companies shall demonstrate their physical presence in Cyprus, trough the establishment or operational of independent premises and have their own employees, that are based in Cyprus
Criteria for employing of Non-EU personnel under fast track process
- The Ultimate Beneficial Owner shall be the major shareholder in the Cyprus company. If the company is involved in shipping, high technologies, biotechnology, pharmaceuticals business, the said criteria is exempted.
- There shall be an investment made of at least €200.000 from abroad to Cyprus.
- The company shall have established offices, which are used only for the business purpose and the business premises shall be separate from any private housing.
Once the above criteria's are met the Companies have the right to employ third country nationals as Directors, middle management executives, key personnel or specialists with no restriction on the maximum duration of their stay in the Republic. As well such employees are eligible to exercise their right to family reunification.
Time frame for fast track mechanism
According to the announcements made by the Cyprus governmental bodies the necessary procedures for setting up companies in Cyprus using this fast track mechanism shall be completed within 7 working days from the day the company joins.
With regards to the issuance of residence and employment permits the time frame shall be between 4 and 6 weeks. This depends on the number of the required permits to be issued.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.