The process of company migration – generally referred to as ‘redomiciliation’ – involves de-registering a company in one jurisdiction and re-registering in another jurisdiction. Redomiciliation may be required where the original reasons why a company was incorporated in a particular jurisdiction are no longer be valid or where another jurisdiction presents advantages that the original jurisdiction does not.
Redomiciliation provides the benefit of continuity. The registered address of the company will change and the governing law and regulations under which it operates, but the company itself does not cease to exist and there is no interruption or disruption to business. Importantly, the company retains its legal identity, its original date of incorporation and its history.
The alternative to redomiciliation is the liquidation of the existing company and the transfer of each individual asset, corporate contract or item of property to a new company that has to be incorporated for the purpose in a new jurisdiction.
It is clearly easier for a company to apply to continue in another jurisdiction than to wind it up and transfer all the assets, and some countries allow foreign companies to change their jurisdiction of incorporation. Cypriot law provides for the redomiciliation of companies, through a transfer of their registered office, both into and out of Cyprus.