GEORGE C. STYLIANOU LAW OFFICE

Establishing a Company with Foreign Interest in Cyprus

Cyprus has long been recognized as one of the most attractive and secure jurisdictions for foreign investors and international businesses seeking to establish a legal presence within the European Union.

A Cyprus Company with Foreign Interest refers to a company incorporated in Cyprus in which the majority of shares (more than 50%) are owned by non-EU nationals or foreign entities.
Such companies may benefit from special status and are eligible to employ third-country nationals (non-EU citizens)and enjoy access to Cyprus’s competitive tax and legal framework.

The Law Office of George C. Stylianou provides comprehensive legal, corporate, and immigration support for the registration, structuring, and ongoing management of Cyprus Companies with Foreign Interest.

🇨🇾 Legal Framework

The establishment and operation of companies with foreign participation are governed by the Companies Law, Cap. 113, and the relevant regulations issued by the Department of Registrar of Companies and Intellectual Property (DRCIP)and the Civil Registry and Migration Department (CRMD) of Cyprus.

To qualify as a Company of Foreign Interest, certain conditions must be met, primarily relating to ownership structureand minimum investment capital.

🧾 Eligibility Criteria

A Cyprus company may be classified as a Company of Foreign Interest if it meets the following requirements:

  1. Foreign Shareholding
    • The majority of the company’s shares (over 50%) must be owned by non-EU nationals.
    • If the foreign participation is less than 50%, the company may still qualify if the foreign investor has made a significant financial investment in Cyprus.
  2. Minimum Financial Investment
    • The foreign shareholder(s) must invest at least €200,000 in the company’s activities in Cyprus.
    • The investment may consist of:
      • Funds transferred from abroad to a Cypriot bank account;
      • Acquisition of office premises or other business assets; or
      • Purchase of shares in a Cypriot legal entity.
  3. Physical Presence in Cyprus
    • The company must operate from independent office premises in Cyprus (not a residential address).
    • Virtual or shared offices are generally not accepted for this category.
  4. Substantial Activity
    • The company must carry out genuine business activities in Cyprus, such as trading, consulting, shipping, financial services, or management of group companies.
    • It must maintain financial and accounting records, employ local or foreign staff, and operate in accordance with Cypriot law.

🧑‍💼 Employment of Third-Country Nationals

One of the most important advantages of the Company of Foreign Interest status is the ability to employ non-EU (third-country) nationals legally in Cyprus under fast-track procedures.

Eligible Employees

  • Directors and Senior Management
    (e.g. Managing Directors, CEOs, Department Heads)
  • Middle Management and Key Personnel
    (e.g. accountants, legal officers, IT experts)
  • Support Staff
    (subject to approval and local labor market conditions)

Work Permit Duration

  • Work and residence permits are typically granted for two (2) years, renewable upon application.

Family Reunification

  • Employees under this category are entitled to bring family members (spouse and dependents), subject to specific conditions.

The Law Office of George C. Stylianou assists in obtaining:

  • Work and residence permits for foreign employees;
  • Family reunification permits;
  • Temporary residence (Pink Slip) for expatriate staff;
  • Renewal and compliance filings with the Migration Department.

💼 Benefits of a Cyprus Company with Foreign Interest

  1. EU Jurisdiction & Stability
    • Operate under EU law, within a stable and transparent legal framework.
  2. Favorable Tax Environment
    • 12.5% corporate income tax, no withholding tax on dividends, and wide double tax treaty network.
    • No taxation on profits from foreign permanent establishments.
    • Notional Interest Deduction (NID) for equity financing.
  3. Efficient Immigration Procedures
    • Fast-track processing for foreign staff employment and residence permits.
    • Simplified administrative procedures for investors and their families.
  4. Full Foreign Ownership
    • 100% ownership permitted — no need for a local partner.
  5. International Reputation
    • Cyprus is recognized globally as a well-regulated and reputable jurisdiction, offering credibility to international investors.
  6. Strategic Location
    • At the crossroads of Europe, Asia, and Africa, making it ideal for regional headquarters.

⚙️ Our Legal and Corporate Services

The Law Office of George C. Stylianou provides end-to-end services for setting up and maintaining a Cyprus Company with Foreign Interest, including:

  • Incorporation and registration with the Cyprus Registrar of Companies
  • Preparation of Memorandum & Articles of Association
  • Legalization of corporate documents and shareholder agreements
  • Registration with the Civil Registry and Migration Department as a Company of Foreign Interest
  • Immigration and work permit applications for foreign staff
  • Corporate tax registration and VAT compliance
  • Bank account opening and financial administration
  • Corporate secretarial, accounting, and legal representation
  • Provision of Registered Office, Nominee Directors and Shareholders (if required)
  • Ongoing compliance and reporting services

Our firm also liaises directly with government authorities to ensure smooth registration and renewal processes for companies and employees alike.

🏢 Required Documentation

For registration as a Company of Foreign Interest, the following documents are typically required:

  • Certificate of Incorporation
  • Certificate of Shareholders and Directors
  • Memorandum & Articles of Association
  • Lease or title deed for office premises
  • Bank statement evidencing €200,000 capital transfer from abroad
  • Passports and personal details of shareholders and directors
  • Business plan or description of company activities
  • Auditor’s and lawyer’s declarations (if applicable)

Our office prepares, reviews, and submits all documentation on behalf of the client, ensuring compliance with Cypriot corporate, tax, and immigration law.

⚖️ Why Choose the Law Office of George C. Stylianou

  • Over 35 years of experience in Cypriot corporate, immigration, and investment law
  • Deep expertise in Companies of Foreign Interest and IBCs
  • Trusted by international investors, entrepreneurs, and multinational groups
  • Fully integrated legal, tax, and administrative support
  • Direct communication with your lawyer — no intermediaries
  • Commitment to confidentiality, professionalism, and efficiency

Our mission is to ensure that your investment and business presence in Cyprus is established securely, lawfully, and effectively.

📞 Contact Us

For more information or to begin the process of establishing a Cyprus Company with Foreign Interest, please contact:

The Law Office of George C. Stylianou
📍 56 John Kennedy Avenue, Flat 7, Nicosia 1076, Cyprus
📞 +357 99 620396 | +357 22 421173
📠 +357 22 426390
📧 stilianou.y@cytanet.com.cy
🌐 www.visit-invest-cyprus.com

We provide full legal and administrative assistance for your company formation, immigration, and investment success in Cyprus.

⚖️ Cyprus Company with Foreign Interest