EY Cyprus has issued an announcement guiding companies following the former Register of Companies with Foreign Interests moving to a sector-based model with continuing compliance obligations.
As noted in the announcement, "the revised Guide dated 4 November 2026 confirms that eligibility is now assessed by reference to the company's substantive business activities in designated high-value-added sectors, irrespective of its shareholding structure. Eligible applicants include Cyprus-registered companies and registered branches of overseas companies."
What changes in practice?
As pointed out by EY Cyprus, eligibility is linked to activity in one of nine designated sectors, rather than the origin of the company's capital. "Both foreign-owned companies and companies wholly owned by Cypriot citizens may qualify, provided the applicable criteria are met. Companies must evidence at least EUR 200,000 of investment through one prescribed route and maintain suitable independent business premises. Material changes in business activities require a new application and full reassessment. Registration is followed by continuing reporting, monitoring and removal powers, including annual employment reporting from 1 January 2027," the company notes.
Central message
As the announcement continues, registration is no longer a one-off exercise. A registered company must continue to operate in its approved sector, retain qualifying premises, maintain accurate records and demonstrate genuine economic activity.
Eligibility, sector scope and application process
Nine designated sectors were listed within the announcement:
- Research, innovation, experimental development and commercial exploitation of technology.
- Technology and ICT, including software, digital applications, FinTech, digital gaming, cybersecurity and artificial intelligence.
- Green development and renewable energy sources.
- Shipping, port and related services.
- Healthcare and life sciences, pharmaceuticals and biotechnology.
- Education, training and knowledge-based services. Employment facilitation applies only to senior and middle management.
- Export-oriented manufacturing.
- Air transport, aeronautics, aerospace and related services.
- Financial services, investment funds and internationally oriented professional services.
Important exclusions and process points
As EY Cyprus pointed out, Sector 9 does not include holding companies, property development or exploitation businesses, or entities whose principal activity or strategy involves direct or indirect real estate investment. "A business plan and a Director-signed letter describing the activities must accompany the application. The stated processing period is 25 working days for a complete and correct application. Incorrect or missing supporting documents are automatically rejected by the system," it continued.
Registration documentation and the €200,000 investment test
EY Cyprus also listed the core supporting documents required:
- Current electronic Beneficial Owner search certificate issued through GOV.CY.
- Memorandum and Articles of Association signed and stamped by the Registrar of Companies.
- Evidence of fully operational, independent business premises: title deed, sale agreement or lease of at least 12 months. Subleases and shared premises must identify the company's specific exclusive office space.
- Latest audited financial statements for existing Cyprus companies, where applicable.
- Evidence of at least EUR 200,000 investment, plus any sector-specific operating licence.
- Valid shareholder passports where requested after initial completeness and eligibility review.
Permitted ways to evidence the investment
Transfer of funds
As EY Cyprus noted, "Foreign-owned companies require evidence of at least €200,000 transferred from abroad by one or more shareholders into the Cyprus corporate account, plus the statement showing the deposit and available balance. A wholly Cypriot-owned company may show a corporate balance of at least €200,000."
Premises or equipment
Purchases totalling €200,000, evidenced in the company's name.
Nominal share capital
A €200,000 increase supported by Registrar evidence and the corresponding financial transaction.
Operating expenses
At least €200,000 of expenses incurred and paid by the company during the six months preceding the application.
Existing companies
No repeat deposit is required if audited financial statements show either cash at bank of at least €200,000 or fixed assets of at least €200,000. These tests are alternative, not cumulative.
Post-registration changes and employment monitoring
Changes following registration
Changes in shareholding or ownership are assessed under the existing registration, provided the criteria applying at initial registration continue to be met. A material change in business activity triggers a new application and full reassessment. If a beneficial owner acquires Cypriot or other EU citizenship, the company remains registered provided it continues operating in a designated sector. It retains access to renewals for existing personnel and applications for additional positions, the EY Cyprus announcement said.
70:30 employment ratio and seven-year review
For highly skilled employees, the framework provides for a workforce ratio of 70% third-country nationals and 30% Cypriot or other EU citizens. Compliance is reviewed seven years after the company's registration. For companies registered in 2022, checks begin in 2029.
Annual employment report from 1 January 2027
The annual report is a separate obligation from the seven-year compliance review. The submission deadline, reporting period and filing procedure are expected to be announced during January 2027.
The report includes:
- Company identifiers, BSC Register number, premises, contact person and reporting period.
- Headcount and percentages for third-country nationals, Cypriot citizens and other EU citizens, including the combined Cyprus/EU total and total workforce.
- A signed, dated and stamped declaration by an authorised representative confirming completeness and accuracy.
Removal risks and immediate actions for registered companies
Grounds for removal from the Register
- Failure to meet the criteria or continuing obligations, including failure to retain suitable independent premises or conduct the registered activity.
- Submission of false or misleading information.
- No genuine economic activity, based on financial and operational evidence and any on-site inspection. The company's nature and development stage are taken into account.
- Violation of employment or immigration legislation.
Recommended 2026 readiness review
- Map the company's actual activities to the approved sector and confirm that the business plan and corporate records remain aligned.
- Check the 70:30 workforce profile and create a reliable employee nationality and permit-status register.
- Confirm that premises remain independent, operational and fully documented, including exclusive-use details for shared or subleased space.
- Reconcile the EUR 200,000 investment evidence with bank records, fixed assets, paid operating expenditure or capital documentation, as applicable.
- Prepare the data fields and sign-off process needed for annual employment reporting from 1 January 2027.
- Review changes in business activity, ownership and beneficial-owner citizenship before notifying or filing.
EY Cyprus also underlines that registration in the Register does not itself guarantee approval of applications to employ highly skilled third-country nationals, adding, "Those applications remain subject to separate examination by the Civil Registry and Migration Department under the applicable rules and procedures."
"This alert is based on the Guide to Registration in the Business Support Center Register dated 4 November 2026. It summarises the principal changes and compliance points for general information and should be read together with the full Guide and any implementation announcements issued in January 2027," it concluded.
