Redomiciliation refers to the transfer of the registered office of a company namely the company’s “seat of incorporation” in another jurisdiction provided that the law in both countries allow it.
Foreign companies that want to take advantage of the Cyprus tax regime, may choose to transfer their domicile to Cyprus by avoiding to wind-up the company and to incorporate a new legal entity, simply by following the procedure of redomiciliation. Consequently, the company will continue to exist under a new jurisdiction and will be deleted from the Registry of its original country of incorporation.
Why redomicile your foreign company to Cyprus?
Cyprus has been for years one of the most well-known business hubs. It has serviced international clients who benefit from the skills and know-how from well-educated lawyers and accountants through their many years of practice in the services sector.
Its legal system is based on English common law, one of the most reliable and respectable legal systems on a global level.
The Cyprus Tax Regime is very competitive and it is fully compliant with all EU and OECD requirements. The corporate tax rate is set at 12.5% on net profits, however, specific types of income are fully exempt from taxation.
Further, Cyprus introduced the Notional Interest Deduction (NID) available for new capital.
Other tax incentives include:
- Tax‐exempt dividend income subject to certain requirements
- No withholding taxes on payments of dividends, interest and royalties
- No taxation on profits from the sale of securities
- No taxation on profits of foreign permanent establishments
- No taxation on the liquidation of a Cypriot company
In addition, Cyprus has concluded over 65 tax treaties establishing valuable relationships with is network worldwide whilst creating benefits for Cyprus tax residents.
Therefore, redomiciliation provides an opportunity, without the need to transfer their assets and liabilities to a newly incorporated company, to take advantage of the significant benefits Cyprus offers.
Our Law Firm provides tailored solutions to companies who wish to transfer their registered office in another jurisdiction by completing all the relevant steps required efficiently.
- Preparation and review of all relevant documents
- Correspondence with the Registrar of Companies.
- Supervision of the whole process
- Preparation and changes in contracts
For any further information and/or clarifications please contact us at firstname.lastname@example.org or contact number +35722817711.
Each redomiciliation case is unique and specialist advice should be sought.
Please note that this newsletter is produced for clearly informative purposes and under no circumstance shall be construed as professional advice.
by Amaryllis A. Papantoniou, PAPANTONIOU & PAPANTONIOU L.L.C.