Through the Company Redomiciliation process a company may shift its domicile from one jurisdiction to another by changing the country under whose laws it is registered, without loosing its corporate identity.
In practice usually companies redomicile in order to take advantage the tax laws of a more favourable jurisdiction and/or to enter particular capital markets.
The Cyprus Companies Act in 2006 introduced the new legislative regime in respect of company redomiciliation by which:
- Foreign companies, if eligible to do so, can be redomiciled in Cyprus; and
- Cypriot registered companies can be redomiciled abroad.
A foreign company which is registered in a jurisdiction which allows redomiciliation and the company’s Memorandum and Articles of Association provide the authority to the Company to redomicile, may apply to the Registrar of Cyprus Companies in order to be registered in Cyprus as a continuing company pursuant to the provisions of the Cyprus Company Law.
In case where a foreign company wishes to enter into an activity where a special license is required under Cyprus legislation (i.e. Financial Services Companies, insurance Companies and Financial Institutions) , then such license must be obtained by the Cyprus relevant authorities.