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Moving your business to Cyprus due to Brexit.
Many companies and high net-worth individuals examine the regulatory and legal framework of other EU jurisdictions in view of Brexit.
Brexit and Cyprus.
Cyprus even though a small economy, provides unique advantages and may be ideal as business base of a company that will leave the UK due to Brexit.
Moving your business from UK to another EU country.
When considering where to move your business within the EU, the following criteria must be considered:
- What business vehicles are available, and what are their relevant restrictions and liabilities?
- What are the basic laws governing employment relationships and intellectual property?
- What are the restrictions on foreign investment?
- What are the rules governing trade?
- What are the principles of local contract law?
- What is the legal system?
The advantages of Cyprus.
Cyprus being an ex British colony, follows the common law system. In addition all primary laws like company law, contract law and tort law and modeled on English law. The Cyprus’s courts follow the precedents of the English courts and in general Cyprus can be characterized as UK-friendly country.
Further the accounting system including the VAT principles follow the English model.
The private limited company.
The Cyprus Companies Law is a replica of the British Companies Act of 1948. Thus the body of corporate and company law is English based and largely common law.
Consequently any company that operates in the UK can expect to find the same regulatory framework when moving to Cyprus.
You can read more about the Cyprus company its management and administration on our dedicated Cyprus companies portal at www.CyprusCompaniesPortal.com
Moving your employees
Organisations and individuals moving to another jurisdiction must be aware of the following, among other things:
• The applicable visa and immigration rules.
• The principles of local employment law.
Visa and immigration rules in Cyprus are extremely simple as regards European Union citizens.
As regards non EU citizens there are certain criteria applicable, but in any case the regulatory regime is business friendly.
Offices and premises
Renting or acquiring offices or premises in another jurisdiction will raise questions related to property and tax law, such as:
• Which laws apply to the sale and purchase of real estate?
• What are the principles relevant to real estate leases?
• What taxes apply to real estate transactions?
Again in this area, acquisition of real estate is governed primarily by contract law.
Cyprus’s legal system is based primarily on the English legal system.
Besides European and national law, English common law is also applicable.
The Court system is a two tier Court system, the first instance courts and the Supreme Court of Cyprus which is the appellate court.
Civil matters are tried by the District Courts. There are also specialized courts like the Industrial Disputes Court which is modeled in the English Industrial Relations Court.
How can we help.
Our law firm is advising many clients that are based in United Kingdom and wish to relocate their business. Thus, if your business is affected by Brexit or have any question in relation to that matter please contact our law firm by sending as an email. Click here to send an email