Can a Non-EU Citizen Open a Company in Cyprus & Employ Themselves?

For many non-EU entrepreneurs looking to establish a business in Cyprus, incorporating a company is only one part of the process.

A common question we receive is:

“Can I open my own company in Cyprus and then work for that company?”

This is an important question because owning a Cyprus company and having the right to live and work in Cyprus are separate matters.

Depending on your circumstances, establishing the company may therefore be only the first step. Your immigration and employment position must also be considered.

Can a Non-EU Citizen Own a Cyprus Company?

A third-country national may, subject to the applicable legal and regulatory requirements, establish and own shares in a Cyprus company.

However, being a shareholder or beneficial owner of a company does not, by itself, automatically give a non-EU national the right to reside or work in Cyprus.

This distinction is particularly important for entrepreneurs who intend not only to invest in a Cyprus company but also to actively manage or work for it.

Can You Work for Your Own Cyprus Company?

Potentially, yes, but the appropriate structure and immigration route will depend on the circumstances.

If you intend to relocate to Cyprus and actively work for your company, it is important to consider questions such as:

• Does the company qualify under an immigration/employment route that permits the employment of third-country nationals?
• What position will you hold within the company?
• Will you be a shareholder, director and employee?
• What salary will you receive?
• Do you meet the applicable qualifications or experience requirements?
• What residence and employment permit will be required?

These matters should ideally be considered when structuring the company rather than after the company has already been incorporated.

Companies with Foreign Interests

One route that may be relevant is registration as a Company with Foreign Interests.

Companies that satisfy the applicable eligibility requirements may register in the relevant Register and benefit from a framework facilitating the employment of qualifying third-country nationals.

Eligibility depends on the particular circumstances and structure of the company, including its ownership and, where applicable, investment requirements or the nature of its activities.

It should therefore not be assumed that every company incorporated by a non-EU national will automatically qualify.

What Are the Requirements for Employing a Third-Country National?

Under the applicable framework, qualifying Companies with Foreign Interests may employ highly paid third-country nationals, subject to the relevant requirements.

These include, among other things, requirements relating to:

• minimum gross monthly remuneration;
• academic qualifications or relevant professional experience;
• the employment contract; and
• the appropriate residence and employment permit.

The applicable requirements should be reviewed based on the circumstances at the time of the application.

Can You Be a Shareholder, Director and Employee?

These roles should be considered separately.

A person may have an ownership interest in a company and may also hold an office such as director. However, where that person intends to work and receive remuneration in Cyprus, the applicable immigration and employment requirements must also be addressed.

For this reason, simply incorporating a company and appointing yourself as a director does not necessarily resolve your right to work or reside in Cyprus.

What If You Are Already Living in Cyprus Under Another Residence Permit?

This is another important consideration.

If you are already in Cyprus as a student, visitor, digital nomad, employee or under another residence category, you should establish whether your existing status permits the activities you intend to undertake.

Depending on your circumstances and business plans, a change of immigration status may need to be considered.

The correct approach will depend on your current permit, nationality, proposed role in the company and the nature of the business.

Planning to Relocate to Cyprus and Establish a Business?

If your ultimate objective is to establish a company, relocate to Cyprus and work for your own business, it is advisable to consider the corporate and immigration aspects together from the outset.

A suitable structure for one entrepreneur may not be appropriate for another.

Before proceeding, consideration should be given to:

• the proposed ownership structure;
• the company’s business activities;
• the amount and form of investment;
• whether the company may qualify as a Company with Foreign Interests;
• your intended position within the company;
• your remuneration;
• your current immigration status; and
• the residence and employment route available to you.

How We Can Assist

We advise non-EU entrepreneurs and business owners on establishing and operating businesses in Cyprus, together with the related immigration and employment considerations.

If you are considering setting up a company in Cyprus and would also like to live and work in Cyprus through your business, we can review your circumstances and advise you on the available options and the steps involved.

Contact us to arrange a consultation to discuss your proposed business structure, current residence status and available options.

This article is intended for general information purposes only and does not constitute legal advice. Corporate, immigration and employment requirements depend on the circumstances of each case and may change from time to time. Professional advice should be obtained before taking action.