Setting up a Business in Cyprus Know the Benefits & Procedure

Each year, Cyprus attracts numerous expats who are looking to start their business ventures. And the reasons for that are many: from the fact that the process of establishing a company is relatively easy, to the fact that corporate tax in Cyprus is one of the lowest in all of the EU, Cyprus has a pro-business approach that benefits new owners. If you are one of them, however, you should be aware that the process of starting your own business on the island may take more or less time, depending on whether you are an EU/EFTA/UK national.

Benefits of Setting Up a Business in Cyprus 

Followings are the few benefits of setting up a business in Cyprus:-

•  Strategic location – at the crossroads of Europe, Africa and Asia 
• It has an influential tourism industry
• The government has a pro-business approach toward new reforms and changes 
• The country has one of the lowest corporate tax rates in the European Union (EU) 
• Cyprus has the lowest crime rate in Europe 
• It has an attractive tax regime: dividend income, profits from overseas permanent establishments and sale of securities as well as international transactions are exempt from tax
• Cyprus has a state-of-the-art infrastructure and telecommunications network

How to Start a Business in Cyprus?

For incorporating a company in Cyprus, one has to first get a company name approved by the Cyprus Company Registrar. After this, they have to provide a set of documents as requested to the Department of Registrar of Companies in order to get a proper license for the business.  

Once the Certificate of Incorporation is obtained, the registered company will need to obtain a Value Added Tax (VAT) Number by registering itself with the Tax Department. Further, it is also required to obtain Social Contribution registration at the Ministry of Labor, Welfare and Social Insurance.

Please see few other requirements for Cyprus company formation as herein below:-

• No minimum capital required 
• Minimum 1 Director (of any nationality) 
• Minimum 1 Shareholder (of any nationality) 
• 1 Company Secretary 
• Local registered office address

Apart from this, the business-environment in Cyprus is quite friendly for the foreign investors. A company can be incorporated in just 5 working days and a bank account can be opened in 10-15 days provided all documents required are correct in order as requested. Rents, electricity, salaries, VAT rates are significantly low here. There is a huge tank of university educated experts to support your businesses. Investment opportunities in Cyprus are booming at an exponential rate and registering a business in Cyprus is indeed simple, fast and comparatively cheap when it comes to the costs to be compared to the rest of the other countries.