The Council of Ministers approved on 30 November 2022 the amendment of the policy for the registration of companies in the Register of Foreign Interest Entities, which is currently being administered through the Business Facilitation Unit (“BFU”). For further details regarding the benefits and requirements for the registration of companies with the BFU, you can access our alert issued earlier this year.
As per the amended policy, the eligibility criteria for the registration of “Foreign Interest Companies” with the BFU, have now been modified. More specifically, in case of a company whose majority of shares (i.e. >50%) are ultimately owned by third-country nationals, a new requirement has now been introduced, whereby an initial investment in Cyprus of at least €200.000 should be made. The relevant funds should be transferred legally in Cyprus from abroad from the UBO(s). For this purpose, the relevant bank swift confirmation should be presented to the Authorities, confirming that the funds have been deposited to the Cyprus bank account of the company.
It should be highlighted that this amendment in the policy for the registration of companies with the BFU enters into force on 12 December 2022.
How can KPMG assist?
KPMG Cyprus has a specialised immigration team that can provide assistance for registering potentially eligible companies with the BFU, in order to employ highly skilled third country nationals.
If any assistance or further clarifications are needed with regards to the amendment in the policy for registration of companies with the BFU, please do not hesitate to contact our office.
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