Moving to Cyprus: mere business owner + medical insurance vs BO & employee + public healthcare

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generally, yes, but the accountants shall also take their fees for additional payroll processing
 
You can issue interim dividends without any restriction. If after the audit it shows that these dividends were not out of profits then the difference becomes a debt to the company.
And when does that debt have to be repaid? Will it be taxed as personal income if you live in Cyprus, or would that be illegal?