Merges Divisions And Conversions (Redomiciliations)

Introduction

Cyprus offers a dynamic and advantageous framework for mergers and reorganisations both within its borders and across the European Union.

There are apparent and well-known advantages of merging two companies: the creation of a stronger entity; the enhancement of their competitive position; expanding market/countries reach; operational efficiency; the avoidance of liquidating group entities; improvement of innovation, by accessing a broader range of financial resources; the transfer of assets and liabilities without the need for the novation of contracts or other cumbersome procedures; and other.

Mergers in Cyprus are also attractive from a tax perspective, as mergers and reorganisations which fall within the scope of the law may well result in a total exemption from tax in Cyprus.