‘Redomiciliation’ and the process of foreign companies migrating to Cyprus

The transfer of the registered office of an overseas company to the Republic of Cyprus, a process colloquially termed “redomiciliation”, contemplates the registration of the overseas company in the Republic of Cyprus as a continuing company.

Cyprus Companies Law inserted corporate mobility provisions back in 2006, enlivening the country’s already eminent company law framework and breathing life into this increasing trend among corporate undertakings globally.

A company that is effectively managed and controlled in Cyprus is liable to a flat corporation tax rate of 12.5%, which arguably renders Cyprus an appealing destination for resourceful international clients. In addition, the robust and longstanding double taxation treaty network with China, Singapore, Thailand and Eastern Europe consolidates Cyprus as a prolific environment for any mobile-thinking company that seeks proactive tax planning.

Before embarking on such a process, and as a number of jurisdictions worldwide have yet to introduce company migration legislation, it is imperative that the laws of the country of incorporation of the company permit it to transfer its registered office to another jurisdiction.