CYPRUS COMPANY REDOMICILIATION
Through the Company Redomiciliation process a company may shift its domicile from one jurisdiction to another by changing the country under whose laws it is registered, without loosing its corporate identity.
For more information and professional assistance please contact [email protected].
In practice usually companies redomicile in order to take advantage the tax laws of a more favourable jurisdiction and/or to enter particular capital markets.
The Cyprus Companies Act in 2006 introduced the new legislative regime in respect of company redomiciliation by which:
- Foreign companies, if eligible to do so, can be redomiciled in Cyprus;
- Cypriot registered companies can be redomiciled abroad.
A foreign company which is registered in a jurisdiction which allows redomiciliation and the company’s Memorandum and Articles of Association provide the authority to the Company to redomicile, may apply to the Registrar of Cyprus Companies in order to be registered in Cyprus as a continuing company pursuant to the provisions of the Cyprus Company Law.
In case where a foreign company wishes to enter into an activity where a special license is required under Cyprus legislation (i.e. Financial Services Companies, insurance Companies and Financial Institutions) , then such license must be obtained by the Cyprus relevant authorities. Also the foreign company must produce relevant consent for their re-domiciliation by the respective authorities of their country.
Cases where applications by foreign companies to be re-domiciled in Cyprus are rejected:
- When dissolution proceedings have been initiated against the foreign company;
- When a liquidator or receiver or administrator has been appointed for the foreign company property;
- When a Court order or judgment exists limiting the rights of the foreign company’s creditors;
- When certain procedures have been initiated for infringement of the law of its jurisdiction.