Company Redomiciliation: Changing Your Corporate Headquarters.
Relocating your company’s headquarters from one jurisdiction to another (i.e. “redomiciling”) doesn’t have to be costly or difficult and can provide many benefits when done correctly. Redomiciliation is a well-known international practice and moving a company’s seat to or from Cyprus is provided for under Cyprus law as long as the company’s Memorandum and Articles of Association allow for redomiciliation.
Benefits to Redomiciling?
Companies redomicile for many reasons including:
1. avoiding liquidation (especially if you are a well-known company that has been operating for many years);
2. allowing you to maintain your business continuity;
3. accessing a wider market;
4. a more favourable tax regime;
5. aligning the place of registration with your shareholder base; and
6. a more favorable legal regime.
Relocating from Cyprus to a Foreign Jurisdiction- Procedures at a Glance:
Under the Cyprus Companies Law Cap 113, the procedure for relocating your company’s seat from Cyprus to another country takes approximately 6-8 months. This is because you will have to perform a final financial audit and submit this to the tax authorities in order to obtain a tax clearance certificate. This in turn is filed with the Company Registrar in Cyprus, in order to obtain permission to be struck-off the Cyprus Company Registration. The law also requires you to advertise in two local newspapers that your company is being redomiciled. Once the final clearance is obtained from the Cyprus Company Registrar, you may present this to the Company Registrar of the next country you are establishing your headquarters and fully establish your entity abroad.
Relocating to Cyprus from a Foreign Jurisdiction:
Similar to the above, under the Companies Law Cap 113, Companies which offer licensed activities under certain provisions of the law in their jurisdiction and for which similar licenses are required in Cyprus, must show that they have obtained the relevant consent for their redomiciliation from the relevant Authority of their country. Once this is completed, they will have a temporary registration of continuation which allows the foreign company coming into Cyprus to be considered as a legal entity duly domiciled and incorporated according to the Cyprus law. This also gives the company the same liabilities and right to exercise all powers that any Cyprus-registered company may exercise.
If you are interested in redomiciling to or from Cyprus, please contact us at email@example.com