INTRODUCTION
Companies of foreign interest registered in the Republic of Cyprus, including former offshore companies and Cyprus shipping companies, are entitled to employ third country nationals under specific circumstances, as described below. It is important to mention that such third country nationals are able to exercise their right to family reunification and their family members (spouse and minor children) can enter and reside in Cyprus.
Interested employers and employees should obtain relevant license from the Civil Registry and Migration Department (CRMD).
ELIGIBLE COMPANIES
In order for companies of foreign interest, including former offshore companies and Cyprus shipping companies, to employ third country nationals in the Republic of Cyprus, the following must apply and occur:
- The majority of the company's shares should be owned by third country nationals. If the percentage of foreign participation in the company's share capital is equal to or less than 50% of the total share capital, in order for the company to be considered as suitable, the foreign participation should represent an amount equal to or greater than the amount of € 171.000,00.
- The natural persons who are the ultimate beneficial owners should be declared, in order for the company to receive the approval of the Civil Registry and Migration Department.
- A foreign direct investment of capital amounting to at least € 171.000,00 must be legally admitted to Cyprus from abroad (by the shareholder(s) of the company). This should be proved by appropriate bank and other documents. This requirement only applies to companies which will employ staff from third countries for the first time.
- The company must operate in independent offices in Cyprus, housed in suitable premises, separate from any private housing or other office, except in the case of business co-habitation.
ELIGIBLE EMPLOYEE
Eligible companies may employ third country nationals in the following categories, under the following conditions:
Directors' Category
Directors' Position Includes:
- Company Directors (or Partners in the case of partnership);
- General Managers; – Departmental Managers.
The minimum salary for a director's position is €3.872,00 gross monthly, based on a minimum of 12 monthly salaries per year.
The maximum number to be employed under this category is up to 5 persons, unless a greater number can be justified in particular circumstances.
Middle Management Category
Middle Management Personnel Includes:
- Upper/ Middle Management personnel;
- Other administrative, secretarial of technical staff.
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 under this category is up to 10 persons, unless a greater number can be justified in particular circumstances.
Support Staff
Third country nationals not included in the above categories are considered as support staff. Companies are expected to hire for these positions Cyprus or European citizens. In this respect, it must be proven to the Ministry of Labor that there are no such qualified persons available for hire in order for a relevant authorization for employment to be granted.
APPLICATION
As a first step we check company's suitability and we then we proceed with its registration to the CRMD registry. If the Company is not registered with the CRMD, then application for work permit and the application for company registration to the CRMD registry might be lodged simultaneously
VALIDITY OF TEMPORARY RESIDENCE AND EMPLOYMENT 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 a time limit, provided they hold a valid temporary residence and employment permit.
For support staff, the restrictions applicable to the general employment of third country nationals in the Republic of Cyprus apply.
ONGOING REQUIREMENTS
All international companies registered with the CRMD as third country employer must annually submit their audited accounts, tax clearance certificate, VAT clearance certificate where applicable, as well as the proof of payment of the Company's Annual Levy.
OUR SERVICES
Perfect Circle Trust Ltd ("PCT") is the one company to rely on when in need of a highly competent services.
We work in cooperation with one of the top law firm in Cyprus – Y. Argyrides & Associates LLC and the most well-known and respected tax consultants, accounting and audit firms in the country, so that our services are well rounded, addressing every need and ready for any business scenario.
Our team consists of well-trained professionals with the primary goal of making all the benefits of the above scheme accessible to our clients. We can assist you with the following:
- Preparation and submission of a well-structured business plan.
- Drafting of various employment contracts and providing general legal advice to various employment, corporate and commercial matters, including to stock option schemes.
- Drafting of shareholders' (founders') agreements.
- Advice in relation to the incorporation of the company, if the company is not an existing company.
- Assistance with the procedure of the application for Visa, preparation of all the required and supportive documentation, submission of the application and completeness of the process.
- Assistance with the procedure of the application for work and residence permit preparation of all the required and supportive documentation, submission of the application and completeness of the process.
- Opening of Bank Accounts.
- Practical assistance with regards to finding premises, lodgings etc.
- Liaising with the Cyprus Authorities to ensure that the application is properly progressing and to avoid any undue delays.
- Due Diligence Reports.
- Introduction of Insurance Companies.
- Registration with Tax Authorities and Social Security.
- Tax consulting and Structuring.
- Corporate Support/ Management.
Originally published September 17, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
