The Council of Ministers adopted the “Strategy for Attracting Businesses for Activities or/and Expansion of Activities in Cyprus” on October 15, 2021. The goal is to help Cyprus become an international business center for global enterprises while also attracting international investments and skills.
The previous “Fast Track Business Association Mechanism” will now be renamed the “Business Facilitation Unit” as of January 1, 2022.
The primary purpose of the Business Facilitation Unit is to give support and expedite operations through a single point of contact.
Who qualifies?
- Any international corporations that operate in Cyprus, as well as any foreign companies who aspire to establish a presence in Cyprus. These businesses must have a physical presence in Cyprus. Foreign corporations are defined as those in which the majority of the shareholders are third-country nationals. If the foreign participation in the company’s share capital is equal to or less than 50%, the foreign participation must match an amount equal to or more than €200,000 as nominal capital;
- Public companies that are registered on any recognised stock exchange;
- Cyprus shipping companies;
- Cyprus tech/innovation companies – High technology company (see details below);
- Cyprus pharmaceutical companies or Cyprus companies that are active in the field of biogenetics and biotechnology;
- Companies that the majority of share capital is owned by individuals that have obtained Cyprus citizenship based on economic criteria.
If the following conditions are satisfied, a company will be classed and deemed a “High Technology Company”:
- The company is established and present in the tech market, and
- The company has high levels of Research and Development intensity, and
- The company focuses on products that are included in the below categories:
- Space industry
- Telecommunication, electronic products, or computers
- Pharmaceutical or biomedical
One-Stop-Shop:
Companies will be able to fulfill all of their company registration procedures through the Business Facilitation Unit’s one-stop-shop. This shop offers the following:
- Assuring that the company’s name is approved and that it is registered with the Department of Registrar of Companies.
- Registration of Partnerships, European companies (SE), and branches with the Department of Registrar of Companies.
- Ensure that the company applies to the Employers’ Register and is aware of all of their social insurance requirements.
- Assist the company with VAT registration and registration with the Tax Department and Income Tax Office;
- Provision of a wide variety of additional general help in areas such as taxation, labor rules, environmental regulations, and the economic environment;
Another critical component of the business facilitation unit is the provision of ongoing assistance and direction to companies and their business development. Guidance might take the form of offering information and support with the necessary licensing or with the company’s trademark. Guidance can also be offered for the recruitment of suitable individuals who will meet the demands of the organization. In general, assistance is offered for the company’s whole life cycle and development.
What exactly is the procedure?
All companies wishing to relocate or extend their activities to Cyprus must express their interest in writing to the Ministry of Energy, Commerce, and Industry’s Business Facilitation Unit through email. The email must include a letter that clearly states the company’s interest in transferring or expanding operations in Cyprus, as well as a description of the company’s major activities, history, plans, number of employees, and so on. A new company must present a five-year business plan that includes goals and strategies for the company’s profitability and growth.
The Business Facilitation Unit will then contact the company and notify them of the next steps and documentation that must be delivered in order for the company’s services to begin.
It is vital to highlight that the process is done in a relatively short period of time. All stages for the registration of a corporation are completed within 7 working days of the date of submission of all needed paperwork to the Ministry.
If a company is already registered with the Civil Registry and Migration Department, the aforementioned application process does not apply to them, and the Business Facilitation Unit policy will apply to the company immediately.
In addition to the foregoing, the government has altered the process for issuing temporary residency and employment permits to third-country nationals. In terms of the Business Facilitation Unit, eligible companies are those that have been identified above. If specific conditions are satisfied, eligible organizations can hire highly qualified workers from third countries. The following are some of the criteria to consider:
- Have a university degree or title, or an equivalent certificate, or have at least two years of related experience.
- The maximum number of third-country nationals employed by a company from the date it joins the Business Facilitation Unit and for a period of five years shall not exceed 70 percent of the overall company’s workforce. If, after 5 years, the company is still unable to employ 30% Cypriots, the company’s status will be reconsidered.
- Gross pay must be greater than €2,500 per month; permits are given within one month and can be valid for up to three years.