Cyprus is blessed with an attractive business environment, competitive tax system, an open-market economy, modern infrastructure, and articulate workforce, which make it an ideal location for international business. It is not only meant for transacting business with Eastern and Central Europe, the Middle East, and Russia but also with the European Union.
Because of the aforementioned advantages which Cyprus offers, a number of companies from across the globe decide to relocate their business to Cyprus, to have their own shares of the benefits offered by Cyprus by setting up branches of their companies in Cyprus.
Inward redomiciliation implies that a foreign-based company can relocate its business to Cyprus without liquidating the existing one. Once the process is successfully completed, the company becomes an entity incorporated in Cyprus and it must abide by Cypriot law, tax, as well as obligations.
Branch registration implies that a foreign-based company registers its branch in Cyprus and there is no need to incorporate the local business. The branch must abide by the Cypriot laws and pay taxes in Cyprus. In Cyprus, a branch is not regarded as a separate legal entity, although it belongs to the ‘parent’ company.