On the 3 September 2020, the Cypriot Government approved the “Fast Track Business Activation Mechanism”, fully activated in October and that has already attracted the interest of foreign companies, businessmen and others.
Aims
The Mechanism aims at the fast and efficient service of requests received from existing or new companies of foreign interests for induction in Cyprus. Through the launch of a new website, this Mechanism serves to expedite and simplify the onboarding process for companies from third countries into the Cypriot business environment.
Benefits & Support
The Mechanism for eligible companies has the following benefits and support:
- Setting up a business from a single point for company registration, name approval, registration in the Social Insurance register, employer register and VAT and Income Tax register.
- Providing information and guidance to secure the necessary business licenses. Any operational permits (except building and planning permits) will be granted within 30 working days.
- Facilitating the issuance of residence and employment permits to persons from third countries, who will be employed by the companies that will be part of the Mechanism.
According to the regulations, all the necessary procedures for setting up companies in Cyprus that make use of the Mechanism, are completed within 7 working days from the day the company joins.
In addition to the above, another incentive pointed out for someone interested in joining the Mechanism, is the existence of procedures for issuing residence and employment permits that these companies must follow to transfer human resources involving 3rdcountry nationals.
Specifically, the time required for the issuance of residence and employment permits is between 4 and 6 weeks, depending on the number of permits requested, adding that another incentive is the possibility of employing more foreigners from third countries in certain professions. and skills, for which the greatest shortage of supply has been observed nationally, with the majority being related to digital skills.
This new policy for issuing residence permits concerns not only foreign companies that will use the Mechanism, but also Cypriot companies that fall into the fields of shipping, high technology and innovation, pharmaceuticals, biogenetics and of biotechnology, and wish to employ staff from third countries with skills for which there has been a shortage in Cyprus.