Recent developments within the Eurozone has urged many companies to re-domicile in countries with more tax incentives and less capital control restrictions. Why Cyprus?
40+ Double Tax Treaty Network hence TAX RELIEF.
The Legal Framework:
With effect of 2006, an amendment has been made to the Cyprus Companies Law Chapter 113 of the Statutes Law of the Republic of Cyprus, by which:
· Foreign companies can be re-domiciled in Cyprus.
· Cyprus registered companies can be re-domiciled abroad.
A foreign company registered in a country which allows re-domiciliation may apply to the Registrar of Companies in Cyprus to be registered in Cyprus as a continuing company to the Companies Law Cap 113.
This also applies to a company incorporated in Cyprus that wants to transfer to another jurisdiction. In either case the company remains registered in the country of origin whilst operating in a different jurisdiction.
Once the Registrar of Companies is satisfied that the lodged documents are in accordance with the law, the Registrar certifies that the foreign company is temporarily registered as a continuing entity in Cyprus. After the temporary registration is issued the foreign company is considered as a legal entity duly incorporated according to the laws of Cyprus and is temporarily registered in the Republic.
The foreign company must present evidence to the Registrar of Companies, within six months from the issuance of the temporary registration certificate that the company has been disallowed from a being a company registered in the country of initial incorporation.
Within a 6 month period, from the issuance of the temporary registration certificate, the foreign company must present to the Cyprus Registrar evidence that it has been stopped from being a company registered in the country of the initial incorporation and/or that its registration in the foreign country has been cancelled. Usually this document is called the Certificate of Discontinuance which must be provided duly made apostil.
ASC’s team of experts can:
· Assist the client in preparing all necessary supporting documents
· Consult and guide the client throughout the whole procedure
· Submit the application to the Registrar of Companies
· Monitor the status of the application