Cyprus remains one of the EU’s most attractive business hubs, thanks to its 12.5% corporate tax rate, reputable legal system, and strategic access to European markets. For EU citizens, the process of setting up a business is simple.
However, for Non-EU citizens—a group that now includes all UK nationals post-Brexit—a critical question arises: “Can I still form and operate a company in Cyprus, and can I move there to run it?”
The short answer is yes.
But the process is different and requires a specific, strategic approach. You can no longer just fly in and start working, as UK citizens once did. This guide provides the complete, step-by-step process for a Non-EU national to successfully establish and, crucially, relocate to Cyprus to manage their new company
The Two Goals: "Remote Ownership" vs. "Physical Relocation"
As a Non-EU citizen, you have two primary options. The path you choose depends entirely on your main goal.
Remote Ownership (Standard Ltd Company): You can 100% own a Cyprus company from abroad (e.g., from the UK or USA). This is perfect for a holding company, an e-commerce business, or a structure to hold investments. You can be the shareholder and director, but you cannot easily obtain a work permit to live and work in Cyprus.
Physical Relocation (Company of Foreign Interests): This is the solution for entrepreneurs who want to move to Cyprus and actively run their business from the island. This structure, now managed by the Business Facilitation Unit (BFU), is specifically designed to allow the employment of Non-EU directors and specialists.
This article focuses on the second path, as it’s the most common goal for our clients.
The Solution: The "Company of Foreign Interests" (BCS)
To legally relocate to Cyprus as a Non-EU owner, your company must qualify as a “Company of Foreign Interests” (sometimes called a “Business Conducting Substance” or BCS). This status unlocks the ability to hire Non-EU staff, including you as the director/owner.
Key Requirements for BCS Status (Updated 2024):
Non-EU Shareholding: The majority of the company’s shares must be held by third-country (Non-EU) nationals.
Capital Investment: The ultimate beneficial owner (UBO) must demonstrate an investment of at least €260,000. This capital must be legally transferred to Cyprus from abroad and can be used for future company expenses.
Physical Office: The company must operate from a genuine, physical office space in Cyprus (a simple “virtual address” is not sufficient for this status).
Once your company is approved, it gains the right to employ Non-EU nationals for key positions, paving the way for your work and residence permit.
The Complete Formation Process: A Step-by-Step Guide
Here is the full process, from initial idea to receiving your residence permit.
Step 1: Preparation and Name Approval
Before any legal work begins, we must:
Choose a Company Name: We submit your desired name(s) to the Cyprus Registrar of Companies for approval. This ensures it is unique.
Gather KYC Documents: As a Non-EU national, you must provide clear, apostilled (lub poświadczonych notarialnie) documents:
A certified copy of your passport.
A proof of residential address (e.g., a utility bill or bank statement, no older than 3 months).
A brief CV outlining your business experience.
A bank reference letter.
Step 2: Legal Drafting and Submission
Drafting M&AA: We draft the Memorandum and Articles of Association. This legal document outlines the company’s activities, shareholders, and directors.
Filing with the Registrar: All documents are signed and filed with the Registrar of Companies. Within 5-10 working days, the company is officially incorporated.
Receiving Certificates: You will receive all legal certificates, including the Certificate of Incorporation, Shareholder Certificate, and Director Certificate.
At this point, your company legally exists. But for a Non-EU owner who wants to relocate, the work has just begun.
Step 3: The Crucial Post-Incorporation Phase
This is where we secure your company’s (and your own) right to operate in Cyprus.
Tax Registration: We register the company for a Tax Identification Number (TIN) and, if necessary, for VAT.
Open a Corporate Bank Account: This is a critical step. We assist you in opening a Cyprus corporate bank account. This is where you will transfer the required €260,000 investment capital.
Apply for BCS Status: We compile a detailed application for the Business Facilitation Unit (BFU). This application includes your business plan, proof of the €260k capital, and the lease agreement for your physical office.
Step 4: Obtaining Your Non-EU Work & Residence Permit
Once the BFU approves your company’s BCS status, the final door opens.
Submit Work Permit Application: The company (as the employer) applies for a work permit for you (as the key Non-EU director/specialist).
Submit Residence Permit Application: Simultaneously, you apply for your temporary residence permit.
Biometrics & Issuance: You will be called to the Migration Department to provide biometrics (fingerprints and photo). Once processed, you are issued a Cypriot residence card, allowing you to live and work legally on the island.
Family Reunification: A major benefit of this status is that you can also bring your spouse and dependent children under the “family reunification” scheme.
Conclusion: A Clear Path for Post-Brexit Entrepreneurs
While Brexit removed the freedom of movement for UK citizens, Cyprus has responded with a clear, structured, and attractive pathway. The process for a Non-EU national is more detailed than for an EU citizen, but the benefits are immense. By establishing a “Company of Foreign Interests,” you not only gain access to the EU market and a 12.5% tax rate, but you also unlock the ability to secure legal residency for yourself and your family. This process requires meticulous planning, especially regarding the BCS application and bank account opening. Working with an expert who understands these Non-EU nuances is not just advisable—it’s essential for success.
Navigating the post-Brexit requirements for company formation and relocation can be complex. Contact Tax Relocate today. We specialise in guiding Non-EU entrepreneurs through the entire process, ensuring your company is set up for success and your relocation is seamless.
