A company in Cyprus is under security scrutiny. The office is to gain the right to refuse registration.

A company in Cyprus is not intended to be a way to conceal activities that threaten the state. The upcoming amendment will allow the company registration office to refuse registration and remove existing companies from the register for reasons of national security, protection of sovereignty, or public order.

The project has returned to the debate in connection with the Oxygen Forensics case reported by Philenews and its connections with the Cypriot ownership structure. However, this does not mean a general ban on establishing companies by foreigners or all Turkish citizens. The solutions described remain a project and their aim is to create a clear legal basis for intervention in cases of security threats.

Company in Cyprus: when would the office refuse?

Business registration is handled by the Department of Registry of Companies and Intellectual Property. The proposed regulations are intended to expand the powers of its head, the Registrar of Companies.

According to published project descriptions, the office could refuse registration or other entries, as well as delete an existing company if its activities would violate the protected interests of the state.

SigmaLive indicates that the basis for action would be information received from the competent authority. The project also provides for the possibility of informing the company that the decision is based on data that cannot be disclosed.

This is a particularly important element of the proposal. A company could receive a refusal without access to the full material on which the office based its risk assessment. The exact scope of these powers will depend on the final wording of the regulations.

Why are Turkish citizens appearing in the debate?

The justification for the changes indicated the special situation of the Republic of Cyprus resulting from the Turkish invasion and the ongoing occupation of part of its territory.

Concerns were raised during previous parliamentary sessions about the use of corporate structures for espionage activities and the acquisition of real estate by entities linked to Turkish interests.

In February, officials confirmed that companies whose beneficial owners hold Turkish citizenship operate in the Republic. However, such a relationship alone does not constitute evidence of illegal activity.

In May 2025, the head of the registry, Irini Mylona-Chrysostomou, explained that current law does not prohibit foreigners from establishing Cypriot companies. She also acknowledged cases of refusals for Turkish applicants and the need for stronger legal frameworks for such decisions.

The Oxygen Forensics case has brought the registry back into the spotlight

Philenews linked the latest discussion to the case of the American company Oxygen Forensics Inc, which is being investigated by local authorities.

According to the newspaper, the company is controlled by a Cypriot company in which a significant shareholder is 54-year-old Fatih Osman, who holds a Turkish passport.

This example has once again raised questions about who is actually behind the companies entered in the national register. However, it does not prejudge that the indicated company will be deregistered or that its shareholder has been deemed a security threat by the Cypriot authorities.

The project aims to create a mechanism for responding to such threats. It should not be presented as a decision already made for a specific company.

Registration does not guarantee the anonymity of the owner

The register of beneficial owners, or UBO, is also relevant to this discussion. It serves to identify the individuals who ultimately own or control a company.

This is important in multi-level structures. Another company may be a formal shareholder of one company, but the entire arrangement is still driven by specific individuals.

The obligation to identify beneficial owners already exists. The amendment aims to add separate tools related to national security, going beyond simply collecting data on owners.

What does this mean for entrepreneurs?

The proposals presented do not imply that Poles or other foreigners will lose the opportunity to establish a company. This is an additional basis for refusal in certain cases, not a closure of the market to foreign capital.

The difference between submitting documents and the right to automatic registration is also significant. The application is subject to assessment, and the amendment aims to more clearly address threats to the state.

The entry into force of these solutions has not yet been confirmed. Only the adopted law will establish the precise scope of the new powers, the procedure for their application, and the principles of protecting business rights.

Sources: Philenews, SigmaLive, Cyprus Mail, Department of Registry of Companies and Intellectual Property