The Council of Ministers recently approved an amendment to the policy for registering companies of foreign interests through the Business Facilitation Unit (BFU). This policy pertains to the registration of companies in the Register of Foreign Interest Entities, which is currently being administered through the BFU.
Modified Eligibility Criteria for Registering “Foreign Interest Companies” with BFU
The eligibility criteria for registering “Foreign Interest Companies” with the BFU have been modified as part of the amended policy. Specifically, if a company’s majority of shares (over 50%) are owned by individuals from countries other than Cyprus, the company must now make an initial investment in Cyprus of at least €200,000. These funds must be legally transferred from abroad to Cyprus by the Ultimate Beneficial Owner(s) (UBOs). In order to verify this, the relevant bank swift confirmation must be presented to the authorities, showing that the funds have been deposited into the company’s bank account in Cyprus.
Effective Date of Amendment
It is important to note that this amendment to the BFU registration policy will go into effect on December 12, 2022.