Employees of international companies located in Cyprus – Company Law / Commercial Law

0

To print this article, all you need to do is be registered or log in to Mondaq.com.

INTRODUCTION

Foreign Interest Companies registered in the Republic of Cyprus, including former offshore companies and Cypriot shipping companies, are permitted to employ third country nationals under specific circumstances as described below. It is important to mention that these third-country nationals can exercise their right to family reunification and that their family members (spouse and minor children) can enter and reside in Cyprus.

Interested employers and employees must obtain the appropriate license from the Civil Registry and Migration Department (CRMD).

ELIGIBLE COMPANIES

In order for foreign interest companies, including former offshore companies and Cypriot shipping companies, to employ third country nationals in the Republic of Cyprus, the following conditions must apply and occur:

  1. The majority of shares in the company must be owned by third-country nationals. If the percentage of foreign participation in the share capital of the company is equal to or less than 50% of the total share capital, for the company to be considered appropriate, the foreign participation must represent an amount equal to or greater than the amount of € 171,000, 00.
  2. The natural persons who are the ultimate beneficial owners must be declared, so that the company receives the approval of the Civil Status and Migration Service.
  3. A foreign direct investment of capital in the amount of at least €171,000.00 must be legally admitted into Cyprus from abroad (by the shareholder(s) of the company). This must be proven by bank documents and other appropriate documents. This requirement
    alone applies to companies which will employ staff from third countries for the first time.
  4. The company must operate in independent offices in Cyprus, located in suitable premises, separate from any private accommodation or other office, except in the case of commercial cohabitation.

ELIGIBLE EMPLOYEE

Eligible companies can employ third-country nationals in the following categories, under the following conditions:

Directors Category

The administrator position includes:

  • Company directors (or Associates in the event of a partnership);
  • managing directors; – Departmental officials.

The minimum salary for an administrator position is €3,872.00 gross monthly, based on a minimum of 12 monthly salaries per year.

The maximum number to be employed in this category is a maximum of 5 people, unless a higher number can be justified in particular circumstances.

Middle Manager Category

Middle management personnel include:

  • Senior/middle managers;
  • Other administrative, technical staff secretariat.

The minimum salary for a middle management position is €1,936.00 gross monthly, based on a minimum of 12 monthly salaries per year.

The maximum number to be employed in this category is 10 people, unless a higher number can be justified in particular circumstances.

Support staff

Third-country nationals not included in the above categories are considered support staff. Companies are expected to hire Cypriot or EU citizens for these positions. In this regard, it must be proven to the Ministry of Labor that there are no such qualified persons available for employment in order for proper employment authorization to be granted.

APPLICATION

First, we check the suitability of the company and then proceed to register it in the CRMD register. If the company is not registered with the CRMD, the application for a work permit and the application for registration of the company in the CRMD register can be submitted simultaneously

VALIDITY OF THE TEMPORARY RESIDENCE AND WORK PERMIT

The validity of the permit depends on the duration of the employment contract and can be up to two (2) years, with a right of renewal. Licensed personnel (key personnel) may reside in the Republic of Cyprus without time limit, provided that they hold a valid temporary residence and work permit.

For support staff, the restrictions applicable to the general employment of third-country nationals in the Republic of Cyprus apply.

CONTINUING REQUIREMENTS

All international companies registered with the CRMD as a third country employer must submit annually their audited accounts, their tax clearance certificate, their VAT clearance certificate if applicable, as well as proof of payment of the annual levy of the company.

OUR SERVICES

Perfect Circle Trust Ltd (“PCT“) is
the only company count on when you need highly competent services.

We work in cooperation with one of the best law firms in Cyprus – Y. Argyrides & Associates LLC and the most well-known and respected tax consultants, accounting and auditing firms in the country, so that our services are complete and meet all needs. and ready for any business scenario.

Our team consists of well-trained professionals whose main objective is to make all the benefits of the above program accessible to our clients. We can help you with the following:

  • Preparation and submission of a well-structured business plan.
  • Drafting various employment contracts and providing general legal advice on various employment, corporate and commercial matters, including stock option plans.
  • Drafting of shareholders’ agreements (founders).
  • Advice regarding the incorporation of the company, if the company is not an existing company.
  • Assistance with the visa application procedure, preparation of all required and supporting documents, submission of the application and completion of the process.
  • Assistance with the work and residence permit application procedure preparation of all required and supporting documents, filing of the application and completion of the process.
  • Opening of bank accounts.
  • Practical assistance in finding premises, accommodation, etc.
  • Liaise with the Cypriot authorities to ensure the application is progressing properly and to avoid any undue delays.
  • Due diligence reports.
  • Presentation of insurance companies.
  • Registration with tax and social security authorities.
  • Tax advice and structuring.
  • Business Support/Management.

Originally published September 17, 2020

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: Cyprus Company Law / Commercial Law

A safe haven for corporate redomiciliation

Y.Georgiades & Associates LLC

Corporate redomiciliation generally refers to the transfer by a company of its registration and registered office from one country (and therefore jurisdiction) to another.

New updates on legal reforms in the UAE

Hassan Elhais

The year 2021 has seen many critical changes to the UAE legal regime. The new changes were closely aligned with economic reforms…

Share.

Comments are closed.