Why Redomicile?
Redomiciling, or transferring a company’s registration to another jurisdiction, is a strategic decision that offers numerous benefits for businesses looking to optimize operations and seize new opportunities. Here are some compelling reasons why companies consider redomiciling:
-
- Favorable Tax Environment: One of the primary motivations for redomiciling is the potential for significant tax savings. By relocating to jurisdictions with lower tax rates or advantageous treaties, companies can effectively reduce their overall tax liabilities.
- Transparent Regulation: Choosing jurisdictions that offer clear and favorable regulatory frameworks simplifies compliance and fosters business growth, making it easier for companies to operate efficiently.
- Thriving Business Environment: Redomiciling can provide access to vibrant business ecosystems that support both startups and established companies across various industries, encouraging innovation and collaboration.
- Access to New Markets: Companies can gain easier access to larger and more diverse markets, such as the EU, the United States, the MENA region, and Latin America, which can significantly expand their customer base.
- Streamlined Application Process: Opting for jurisdictions that offer simple and affordable redomiciliation processes can be particularly advantageous for businesses seeking a straightforward path to long-term residency in their new location.
- Opportunities in Financial Centers: Relocating to international financial hubs opens doors to specialized capital markets and global investment networks, enhancing a company’s ability to secure funding and foster growth.
Why Choose Cyprus?
Cyprus is a well-established international business hub that offers a competitive and attractive tax regime for foreign investors. Its strategic geographic location, advanced infrastructure, business-friendly environment, and high-quality professional services make Cyprus an efficient choice for both local business activities and international transactions.
With the lowest corporate tax rate in Europe at 12.5%, along with exemptions on worldwide dividends and interest income, Cyprus stands out as a highly tax-efficient jurisdiction.
In comparison to other popular European destinations, Cyprus provides lower labor costs for both professional and technical talent, affordable office rental prices, and administrative support services at significantly lower rates than major cities.
Cities like Limassol are rapidly developing into financial and technological hubs, fueled by foreign investments and local growth, supported by a highly educated workforce focused on innovation and business advancement for the future.
Steps to Redomicile a BVI Company to Cyprus
To redomicile a BVI company to Cyprus, an application must be submitted to the Registrar of Cyprus Companies along with the following documents:
-
- A resolution from the BVI company approving its continuation in Cyprus
- A copy of the BVI company’s memorandum
- A certificate of good standing for the BVI company
- A sworn affidavit from the director of the BVI company confirming:
- The company name and the name it wishes to continue with in Cyprus
- The jurisdiction under which it is registered
- The date of its registration
- Notification to the relevant authorities of its wish to continue registration in Cyprus (notification should be attached to the affidavit)
- No civil or criminal proceedings are pending against the company in the BVI
- Certificates of directors and secretary
- Certificates of shareholders
- Any additional documents requested by the Registrar of Cyprus Companies
Once these documents are submitted, the Registrar of Cyprus Companies will issue a Temporary Certificate of Continuation, confirming that the foreign company is temporarily registered in Cyprus.
Within six months of receiving this temporary certificate, the BVI company must provide evidence from the relevant authorities that it has ceased to be registered in the BVI. Upon submission of this evidence and the temporary certificate, the Registrar will issue the Certificate of Continuation.
How Long Does It Take?
On average, the redomiciliation process from the BVI to Cyprus takes between 2 to 5 months. The exact timeframe depends on factors such as the company’s size, asset holdings, ownership structure, and the efficiency of collaboration with a Cypriot service provider.
Conclusion
At the Aspen Trust Group, we specialize in assisting businesses with the complexities of international relocation, allowing businesses to operate seamlessly across borders. With nearly three decades of experience as a boutique corporate service provider in Cyprus, we offer comprehensive, tailored solutions designed to align with your specific business goals. Connect with our experts today to develop a redomiciliation strategy that fosters sustainable growth for your business.