The Business Support Centre has issued new guidance concerning registration in the Business Support Centre Register.
The new framework clarifies the eligibility criteria, registration procedure, investment requirements and ongoing compliance obligations applicable both to companies seeking registration and to companies already registered under the former framework.
This is extremely important as employees of these companies may apply for the Cyprus citizenship under a fast – track procedure.
What’s New? Key Changes and Upcoming Obligations
The new guidance introduces two particularly important developments for companies already registered in the Register:
1. Employment Ratio Compliance Checks – From 2029
The Business Support Centre has clarified that compliance checks concerning the required employment ratio of 70% third-country nationals and 30% Cypriot or other EU citizens will commence seven years after each company’s licensing. Accordingly, the compliance checks will begin in 2029.
2. Annual Employment Report – From 1 January 2027
As of 1 January 2027, all licensed companies will be required to submit an Annual Employment Report reflecting their current employment structure. The report will include details of the company’s workforce, contact person details, number and percentage of third-country nationals, Cypriot citizens and citizens of other EU Member States.
The report will also include the company’s corporate identification details and information necessary to establish its current status under the framework. Further guidance regarding the reporting period and submission procedure is expected to be announced in due course.
Key Eligibility Criteria
Registration to the Business Support Centre Register is available to locally registered companies (HE) and branches of overseas companies (AE), irrespective of their shareholding structure, provided that their actual business activities fall within one of the designated high-value-added sectors, including:
- Technology, Information and Communication Technology, FinTech, artificial intelligence and cybersecurity.
- Research, innovation and development.
- Renewable energy and green development.
- Shipping and related services.
- Healthcare, pharmaceuticals and biotechnology.
- Education and knowledge-based services.
- Export-oriented manufacturing.
- Air transport and aerospace.
- Financial services, investment funds and internationally oriented professional services.
Holding companies and businesses principally engaged in real estate development or investment are excluded.
Minimum Investment Requirement
Companies must demonstrate an investment of at least €200,000 towards their establishment and operation in Cyprus. This may be evidenced through:
- Transfer of funds to a corporate bank account in Cyprus.
- Purchase of office premises and/or equipment.
- Increase in nominal share capital.
- Qualifying operating expenses incurred during the preceding six months.
Existing companies may satisfy the requirement through audited financial statements demonstrating cash holdings or fixed assets of at least €200,000, without making a new investment.
Application Procedure and Supporting Documents
Applications must be submitted electronically, accompanied by the required corporate, financial and operational documentation, including a business plan, a Director’s signed description of the company’s activities, evidence of business premises and proof of investment.
Ongoing Compliance Obligations
Registered companies must continue to satisfy the applicable eligibility criteria, maintain independent business premises and carry out their registered business activities.
Material changes to business activities require a new application and reassessment. Changes in shareholding or ownership structure do not automatically affect registration, provided that the applicable criteria continue to be met.
Where beneficial owners acquire Cypriot or other EU citizenship, the company retains its registration and the ability to renew existing employees’ work permits, provided it continues operating within an eligible sector and within the terms of its license.
Failure to comply with the applicable requirements, including employment and immigration legislation, may result in removal from the Register.
How Can We Assist?
Companies considering registration, as well as those already registered, are encouraged to review their eligibility and ensure compliance with the updated requirements, particularly in view of the upcoming employment reporting and compliance obligations.
Our experienced team can guide you through the new Business Support Centre framework, assess your eligibility and assist with registration, the Annual Employment Reports and ongoing compliance requirements.
Contact us today to find out how we can assist your business in Cyprus!
📞 Call us: 00357 22 622 262
📧 Email us: info@paraschou.com.cy
🌐 Visit: www.paraschou.com.cy
This article is provided for general information purposes only and does not constitute legal, tax, or other professional advice. It should not be relied upon as a substitute for specific advice on any individual matter or transaction. Professional advice should be obtained before acting or refraining from acting on the basis of any information contained herein.