Employment of Aliens with IBCs

Last updated on December 6th, 2011 at 08:44 pm

Employment of Aliens with International Business Companies

1. ELIGIBLE COMPANIES

1.1. In order to protect the good name and economic interests of Cyprus, it has been decided that all companies (including ex IBCs) eligible to employ third country nationals on the island, are limited to those which:

  • Belong to groups with transparent ownership and sources of capital and whose ultimate shareholders are approved by the Civil Registry and Migration Department or to public corporations quoted on any recognized stock exchange
  • Operate from their self-contained office:

a) located in suitable distinct premises, not part of a private residence or another office
b) equipped with appropriate office and telecommunication facilities
c) open during normal office hours and staffed with full time personnel

  • Prove, on the basis of their annual financial statements, that they are continuously operating and they are financially sound and credit worthy.

2. EMPLOYEE CLASSIFICATION

2.1. Eligible BCs may employ third country nationals in executive positions on the island. The maximum number of such executives is three (3), unless the Director of the Civil Registry and Migration Department is persuaded that a greater number is justified.

2.2. A third country national who wishes to be employed in an executive position on the island, must:

  • be at least 24 years old
  • have suitable qualifications
  • receive appropriate remuneration

* EU Nationals

Applications by EU Nationals must be completed on forms MEU accompanied by the relevant documents and a fee of €8.55. Application forms are available at the Civil Registry and Migration Department of the Ministry of Interior and at the District Aliens and Immigration Branches of the Police. They are also available at the web site of the Ministry of Interior: moi.gov.cy. Applications by executive staff are made to the Civil Registry and Migration Department and by non-executive staff to the District Aliens and Immigration Branches of the Police.

2.3. The minimum acceptable annual salary for newly appointed executives is €41.040. This amount may be adjusted annually by the authorities according to fluctuations in the salaries index.

2.4. The term “executive” includes third country nationals registered as
(i) Directors or
(ii) Partners
(iii) General managers of subsidiaries and branches of publicly quoted overseas companies and
(iv) Department Managers of BCs operating from Cyprus for at least 2 years.

The term “non-executive”, refers to third country nationals who do not fall under the aforementioned 4 categories and who may be employed in managerial, professional, administrative, technical or clerical positions on the island.

2.5. BCs are expected to recruit non-executive staff from within the island. They may employ third country nationals in non-executive positions if comparable Cypriot personnel or EU Nationals are not available. BCs are advised not to commit themselves to employing a third country national via a non-executive position in Cyprus before first securing his Temporary Residence Permit from the Civil Registry and Migration Department.

3. ADMINISTRATIVE PROCEDURES

3.1. General

3.1.1. The Director of Civil Registry and Migration Department, is the authority responsible for the first issue and subsequent renewals of Temporary Residence Permits granted to all non-Cypriots employed by BCs in Cyprus. The Director of Civil Registry and Migration Department acts in consultation with other competent authorities such as:

  • The Registrar of Companies
  • The Labour Department of the Ministry of Labour and Social Insurance
  • The Cyprus Police

3.1.2. The above mentioned authorities provide advise to the Director of Civil Registry and Migration Department concerning matters falling within their sphere of competence. The Director takes into account their recommendations and replies to the applicants directly.

3.2. First Permits

3.2.1. Executive staff

The application for an executive’s First Temporary Residence Permit is made to the Civil Registry and Migration Department. The Civil Registry and Migration Department issues to the applicant executive his first Temporary Residence Permit within one month, unless his case warrants for further consideration. The application form must be accompanied by the following original documents:

3.2.1.1. In respect of the company

  • Certificate of Registration
  • Memorandum and Articles of Association by the Registrar of
  • Certificate of Directors and Shareholders* Companies
  • Certificate of Registered Office
  • Profile describing the nature of the company’s business and details of its office operations and staff requirements in Cyprus
  • List showing the names of the Directors and Shareholders with their passport number, nationality and addresses abroad
  • In case of new BCs, lease agreement for its office in Cyprus (if not available, it should be presented to the Civil Registry and Migration Department within 2 months)

3.2.1.2. In respect of the executive staff

  • Contract of employment, stating annual salary and service duration by the duly stamped Commissioner for Stamp Duty.

A. New Companies

  • Proof that both the applicant and members of his / her family have adequate funds so that then may not become a burden on the social Welfare System of the Republic during the validity of their permit for at least one year and until the company will operate fully. Such proof could be the equivalent amount to a year’s salary deposited in a local bank and presentation of monthly statements of this account.

or

The production of a relevant certificate by the Registrar of Companies, testifying that the issued and paid up share capital of the company is €42.750. This is required for the employment of up two (2) executive members of the company. In respect of the employment of more than two (2) persons, in an executive capacity, a Bank Recommendation should be produced by a Cypriot Bank, testifying the company’s competency with the financial applications stemming from the employment of (the persons in question).

B. Existing Companies

  • Forms M61 (application for Temporary Residence Permit) and M64 (application for employment permit) fully completed and duly signed.

* In the event of another company being the shareholder, and if the company in question is a Cypriot Company, then a certificate of shareholders is required from the Registrar of Companies. If the said company has been registered overseas, then a certificate of shareholders is required from the relevant Authority of the country in which the company is registered.

  • Copy of applicant’s C.V.
  • Copy of passport’s data pages
  • Certificate of criminal record
  • Bank Guarantee from the employer
  • Medical certificate
  • Medical insurance certificate
  • Fee: €34,20

3.2.2. Non-executive staff

3.2.2.1. In respect of the company (same as in paragraph 3.2.1.1. above) i.e.:

  • Certificate of Registration
  • Memorandum and Articles of Association by the Registrar of
  • Certificate of Directors and Shareholders Companies
  • Certificate of Registered Office
  • Profile describing the nature of the company’s business and details of its office operations and staff requirements in Cyprus
  • List showing the names of the Directors and Shareholders with their passport number, nationality and addresses abroad
  • In case of new BCs, lease agreement for its office in Cyprus (if not available, it should be presented to the Civil Registry and Migration Department within 2 months)

3.2.2.2. In respect of the non-executive staff

The application by a non-executive member of staff who is a third country national is made to the District Aliens & Immigration Police Branch. The application must be accompanied by:

  • Contract of employment, stating annual salary and service duration stamped by the District Labour Office
  • Forms M61 (application for Temporary Residence Permit) and M64 (application for employment permit) fully completed and duly signed
  • Copy of applicant’s C.V.
  • Copy of passport’s data pages
  • Certificate of criminal record
  • Bank Guarantee from the employer
  • Medical certificate
  • Medical insurance certificate
  • Fees €34,20

3.3. RENEWAL OF PERMITS

3.3.1. The applications by executive members of staff are submitted to the Civil Registry and Migration Department together with a certificate of the annual movement of the company’s accounts that prove the normal functioning of the company by the Registrar of Companies and the tax clearance issued by the Inland Revenue Department in addition to the documents mentioned under paragraph 3.2.1.2. (except the certificate of criminal record) and copy of their Aliens Registration Card.

3.3.2. The applications by non-executive members of staff are submitted to the District Aliens and Immigration Branches of the Police with a copy of the previous permit, a copy of the Aliens Registration Certificate (ARC), the tax clearance issued by the Inland Revenue Department in addition to the documents mentioned under paragraph 3.2.2.2. (except the certificate of criminal record).

4. The above procedures are considered necessary for the transitional period until new legislation for Aliens & Migration is enacted following the termination of the role of the Central Bank in these procedures.

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