Cyprus is the third largest island in the Mediterranean and a member of the European Union. Cyprus, despite its modest size, offers a diverse range of business prospects to both foreigners and locals. Starting a business in Cyprus is advantageous for your international endeavor and tax planning, with economic stability being one of the most important advantages. It features a contemporary, free-market, service-based economy that encourages international investors and domestic firms to invest, expand, and succeed. The tertiary services industry is regarded as the backbone of the Cyprus economy, and the consumer market is particularly robust, thanks to the country’s high per capita income.
The Advantages of Starting a Business in Cyprus
- The location is ideal — at the crossroads of Europe, Africa, and Asia.
- Its tourism industry is thriving.
- When it comes to new reforms, the government takes a pro-business stance.
- Cyprus has one of the European Union’s lowest corporation tax rates (EU)
- The country has Europe’s lowest crime rate.
- It has a favorable tax system: dividends, profits from abroad permanent establishments, securities sales, and international transactions are all tax-free.
- The infrastructure and telecommunications network are state-of-the-art.
Cyprus Offers Business Opportunities
- Construction Firm
Individuals who want to start a construction company in Cyprus might get a lot of help from the Cypriot government. Massive infrastructure and private sector growth are on the authorities’ agendas as they aim to attract more people to invest in this industry.
- Consultancy in Education
Cyprus offers a number of world-class universities, and English is the primary language of communication. As a result, many international students travel to Cyprus to further their education.
- Property Rental Market
In Cyprus, this industry is booming. If you have the necessary funds to construct an office complex in any of Cyprus’s business districts, you will undoubtedly see a significant return on your investment. Even though this is a long-term investment, you can return your investment in a relatively short amount of time.
- Travel and tourism
This industry is the most important in Cyprus’ economy. Tourism has proven to be the most robust of Cyprus’ commercial sectors, accounting for 12 percent of the country’s GDP in 2016 — a year that defied forecasts and set new tourist records with 3.18 million visitors.
- The Shipping Business
With approximately 130 shipping businesses, the maritime industry is one of the most successful export services. Limassol, the country’s maritime hub, is home to some of the world’s most powerful shipping names. Investing in this sector will yield higher returns than any other.
- Transportation business
Private establishments have a lot of room in this area. If you want to establish a business in Cyprus, you should think about launching a transportation business. If you have the capacity, you can specialize in road transportation, water transportation, or even both. You can also get into air transportation if you have the financial means.
7. Insurance Brokerage Firm
In Cyprus, an insurance brokerage firm is a thriving business. You should consider creating your own insurance brokerage firm if you are a certified insurance practitioner who wants to start your own business.
What is the Best Way to Start a Business in Cyprus?
For a Cyprus business to be formed, the Cyprus Company Registrar must first authorize a company name. Following that, they must submit a set of documents in order to obtain a proper business license.
To the Department of Registrar of Companies, provide the necessary documents and forms:
- Form HE1
- Form HE2
- Form HE3
- Association Memorandum
- Association Articles
- Directors’ and Company Secretary’s passport copies
- Office proof of address
After receiving the Certificate of Incorporation, the registered firm must register with the Tax Department to get a Value Added Tax (VAT) Number. It’s also necessary to register for Social Contributions with the Ministry of Labor, Welfare, and Social Insurance.
Other prerequisites for forming a corporation in Cyprus include:
- There is no requirement for a minimum amount of money.
- A minimum of one director is required (of any nationality)
- There must be at least one shareholder (of any nationality)
- 1 Secretary to the Corporation
- Address of the local registered office
Apart from that, the business climate in Cyprus is conducive to international investment. In 5 days, a corporation may be formed, and a bank account can be opened in 10-15 days. Rents are modest, as are electricity, salaries, and VAT rates. There is a large pool of university-educated experts available to staff your business. Investment prospects in Cyprus are rapidly expanding, and forming a business in Cyprus is simple, quick, and cost-effective when compared to other nations. If this information was useful to you and you want to start a business in Cyprus, follow all of the authorities’ rules and processes, and you’ll be good to go.