In the ever-evolving landscape of international business, staying abreast of regulatory changes is crucial for companies to thrive. A key focus in this regard is the online seminar offered by the European Legal Training Center (ELTC) on substance and control in Cyprus, addressing the growing significance of these elements in the European Union. Central to this discussion is the ATAD-3 directive, seeking to establish a universal substance test and ushering in a paradigm shift for companies. This article explores the learning outcomes of the course, shedding light on the implications of the ATAD-3 directive and its proposed two-year look-back period, ushering in the need for Cyprus Companies, to evaluate and audit their existing management procedures as soon as possible.

Importance of Substance and Management in Cyprus Companies:

The seminar underscores the pivotal role of substance and management in Cyprus companies. Understanding this importance is foundational to navigating the complexities of compliance and governance. Substance, in this context, refers to the tangible presence and operational activities of a company in a particular jurisdiction. The management and control aspect, on the other hand, delves into the decision-making processes and oversight exercised by the company's leadership.

Substance, Management, and Control Test:

Participants gain insights into the contents of the substance, management, and control test. This involves a comprehensive examination of the criteria used to evaluate a company's physical presence and decision-making processes in Cyprus. An in-depth understanding of this test equips participants with the knowledge needed to ensure compliance with regulatory provisions.

Cypriot Regulatory Provisions and Case Law:

The course delves into Cypriot regulatory provisions, providing participants with a roadmap for adherence. Case law discussions further enrich the learning experience, offering practical insights into how legal principles are applied in substance and control scenarios. This dual approach enables participants to grasp the theoretical framework and its real-world applications.

Substance Risk Factors:

Recognizing substance risk factors is crucial for companies aiming to establish a robust presence in Cyprus. Participants learn to identify and mitigate potential risks, safeguarding their operations and ensuring compliance with regulatory standards.

Inland Revenue Approaches in Cyprus and Abroad:

Understanding the approaches taken by the inland revenue authorities, both in Cyprus and abroad, is essential for companies with cross-border operations. This knowledge empowers participants to align their strategies with local and international taxation frameworks, promoting fiscal responsibility.

New European Approaches to Substance and Control:

The seminar anticipates and addresses the evolving landscape of substance and control in the European Union. Participants gain insights into the new European approaches, preparing them for the challenges and opportunities that may arise. The ATAD-3 directive, in particular, is a focal point, signalling a shift towards a universal substance test.

Skills Acquisition:

Equipping participants with practical skills is a key objective of the course:

Applying the Substance, Management, and Control Test:

Participants learn to apply the substance, management, and control test both in theory and practice. This hands-on approach ensures that they can effectively assess and address compliance requirements.

Analyzing Corporate Governance and Identifying Risk Factors:

The ability to analyze corporate governance and identify risk factors is a valuable skill. Participants can proactively address potential challenges, enhancing the overall resilience of client companies.

Implementing Policies and Procedures:

The course empowers participants to implement policies and procedures, enabling them to advise clients on best practices in substance and control. This proactive approach positions companies to navigate regulatory changes successfully.

Dual Residency Challenges:

Identifying problems related to the dual residency of clients is a skill honed during the course. This is particularly relevant in an era where companies operate in multiple jurisdictions, requiring a nuanced understanding of residency issues.

Advising on ATAD-3 Challenges:

With the proposed two-year look-back period in the ATAD-3 directive, participants are equipped to better advise and protect clients from potential challenges. This forward-looking perspective is crucial for companies aiming for sustained success in the face of regulatory changes.


The course “Substance and Control in Cyprus” emerges as a critical resource for businesses navigating the intricate regulatory landscape of the European Union. By addressing the ATAD-3 directive and its implications, the seminar ensures that participants not only gain knowledge but also acquire practical skills to navigate the challenges and opportunities in substance and control. As companies continue to expand globally, staying ahead of regulatory changes becomes a strategic imperative, and this course positions participants to do just that. Register here