The Fast Track Business Activation (FTBA) mechanism which has been approved by the Council of Ministers on the 3rd of September 2020, aims to provide fast and efficient services to companies that wish to establish presence or expand their operations in the Republic Cyprus.
Under this new policy and as the name denotes, eligible companies can enjoy faster completion of all related procedures including the incorporation of the company, social insurance and VAT registration as well as obtaining the necessary residence and employment permits for their personnel. Additionally, under this scheme companies are enabled to hire an increased number of staff (up to 200 employees) in key positions, while at the same time their family members can be granted Cyprus residence permits.
Companies interested in joining the Fast Track Business Activation mechanism should meet the following criteria:
- Companies should have a physical presence in Cyprus including establishment/operation of independent offices that are separate from any private residence.
- Existing companies should have a minimum turnover of €500.000 per year for 3 out of the last 5 years.
- New companies should provide a reliable 5-year business plan illustrating growth potential.
The Fast Track Business Activation scheme is operated by the Ministry of Energy, Commerce and Industry and includes the following services:
- Provision of Services for the establishment of a company including company registration and name approval, registration with the Social Insurance Department, VAT and Income Tax registration.
- Guidance for the establishment and operation of companies in Cyprus and provision of information for all the necessary permits required by the company in order to start operations.
- Facilitation for the issuance of residence and employment permits in Cyprus for third country nationals.
For a company to be eligible to apply under this scheme, third country nationals should own the majority of the company’s shares (over 51%). This requirement is lifted in the event that the company belongs to any of the following categories:
- Public companies registered in any recognized stock exchange;
- Former offshore companies that were operating in Cyprus by approval of the Cyprus Central Bank, before the change of their offshore status;
- Cypriot shipping companies;
- Cypriot companies of high technology/innovation, that will be certified by the Deputy Ministry of Research, Innovation and Digital Policy based on the applicable framework; and/or
- Cypriot pharmaceutical companies or companies operating in the fields of biogenetics and biotechnology.
The applications to join the Fast-Track Business Activation will be examined by the Ministry of Energy, Commerce and Industry which shall grant the company the relevant Certificate, if the application is successful.
If you are looking to relocate or expand your business in Cyprus via the FTBA mechanism, contact our Corporate and Commercial Department for more information and guidance.
Corporate and Commercial Department
Marios Hartsiotis & Co LLC