Cyprus continues to be a preferred International Business Centre, from where foreigners can conduct their international business. This can be done through the establishment of a new company or by relocating/redomiciling an existing foreign company. In either case, such company can serve as their main or regional headquarters.
Headquartering and company relocation in Cyprus is now even more attractive through the introduction of the Fast Track Business Activation Mechanism (“FTBA”).
The FTBA was approved by the Council of Ministers on 3rd of September 2020 aiming to further attract foreign business to Cyprus as well as to provide fast and efficient services to foreign businesses wishing to establish presence in Cyprus.
Main benefits of FTBA
The FTBA is operated by the Ministry of Energy, Commerce and Industry (“MECI”) and includes the following ‘service package’:
- Assistance and accelerated procedures from a single point of contact to obtain all necessary local registrations for the establishment or redomiciliation of companies in Cyprus, including its registration, name approval, registration with the Social Insurance Registry, the Employers’ Registry, as well as registration with VAT and Income Tax.
- Guidance for establishment and operation of companies in Cyprus and provision of information for all the necessary permits required by the company in order to start operations.
- There are eligibility criteria for employing third-country (non-EU) nationals under more favourable provisions.
- Facilitation for an expedited issuance of the necessary residence and employment permits in Cyprus for third country nationals (and members of their family) required for the operation of companies in Cyprus.
Eligibility criteria for FTBA
Companies interested in joining the FTBA should meet the below main criteria:
- Companies should have a physical presence in Cyprus including establishment/ operation of independent offices that are separate from any private residence.
- Existing companies should have a minimum turnover of €500,000 per year for 3 out of the last 5 years.
- New companies should provide a reliable 5-year business plan illustrating growth potential.
For further information and assistance, feel free to get in touch with George Economides, partner in the firm.