The abovementioned restrictions do not apply if the company is engaged in one of the following circumstances that indicate economic activity and can provide sufficient evidence to the banks in this respect:
- the company is established for the purpose of holding stock or shares or other equity instruments of another business entity or entities engaged in legitimate business with identifiable activities and beneficial ownership;
- the company is established for the purpose of holding intangible or other assets including real estate, ship, aircraft, portfolio of investments, debt and financial instruments;
- the company is established to facilitate currency trades and asset transfers, corporate mergers, as well as carrying out asset management activities and trading of shares;
- the company acts as a treasurer for companies recognised as a group or manages the activities of the group;
- any other case where convincing evidence can be provided that the company is engaged in legitimate business with identifiable ultimate beneficial owner(s).
It is important to mention that the presence of a third person such as a lawyer or an accountant, acting merely as an agent and/or providing nominee and/or secretarial services does not constitute physical presence. The lack of employed personnel is also construed as lack of physical presence.
In addition, the control and management of the company must be exercised from Cyprus and not from a nominee service provider but rather from physical persons, who are members of the Board of Directors of the company and have the experience and expertise expected to be possessed by someone involved in the business activities of the company. Our firm will be in a position to assist you with both the recruitment process of employees and the selection of physical members in the board of directors of the company.