New Business Activation Procedure Announced in Cyprus
On the 3rd of September 2020, a new mechanism known as the ‘Fast Track Business Activation Mechanism’ was introduced and approved by the Council of Ministers. The aim of the Fast Track Business Activation mechanism is to attract third country nationals to bring their already existing businesses in Cyprus or to establish a company in Cyprus by providing fast and efficient services. The Mechanism requires by an interested foreigner to contribute positively to the country’s economic growth in order to be eligible to submit a request.
For a company to the eligible of joining the mechanism, the below criteria must suffice:
Eligibility criteria:
- Companies are required to have a physical presence in Cyprus, including personnel and independent offices.
- Already established company: It is essential to have a minimum turnover of €500.000 per year for 3 out of the last 5 year. An assessment of the company's financial condition will be conducted considering the information provided by the audited financial accounts of the company.
- New company: A 5-year business plan is required in which a business growth shall be demonstrated.
Benefits for a company to join the Mechanism:
- With the utilization of this scheme, the set-up of a business in Cyprus could now be achieved within just a few weeks. In particular, all necessary procedures for the registration and incorporation of a company in Cyprus will be completed within 7 working days from the day of submitting all required information to the Ministry of Energy, Commerce and Industry. In the case that additional permits are required, they will be completed within 30 working days with the exception of building and planning permits.
- The council of Ministers with their decision on 07/10/2020 amend the policy for the issuance of temporary Residence and Employment Permits to to employees of existing and new companies under the Mechanism.
Services provided by the Mechanism to the eligible companies:
- Fast track company’s name approval and registration
- Registration with the Social Insurance Registry, the Employees Registry and the Tax authorities (VAT and income tax)
- Guidance for establishment and operation of companies in Cyprus
- Facilitation for the issuance of residence and employment permits in Cyprus
Our firm will be able to assist you and provide you with further information and clarifications for the above recent developments. Feel free to contact our firm Emilianides, C. Katsaros & Associates LLC via email at info@ekllc.eu or via telephone at 22676752.
