Cyprus is an island located in the Eastern Mediterranean. What makes Cyprus one of the best places to starting a business in Europe is its ease of doing business and a favorable tax regime. There are tremendous opportunities for establishing businesses in construction, tourism, transportation, insurance, and shipping.Why Starting A Business In Cyprus is a great idea for expats. Take a look at this guide to learn about the main reasons.
Legal Aspects Of Starting A Business In Cyprus
Register Your Company
Before you start a business in Cyprus, you will need to register and reserve a company name. Registration is through a licensed and certified lawyer or advocate, who will need to certify all the required documentation. To register an LTD company, you will need to list at least one director and a secretary. While any national can be a director, choosing a Greek citizen will qualify your company for lower taxes.
Open A Corporate Account
You also need to open a corporate account with a bank, which you will use to carry out financial transactions. Cyprus law mandates the deposit of share capital into the account before the operation can commence.
Filing With The Trade Register
Every document you have prepared will have to be filled with the Cyprus Trade Register. Once done, you will then proceed to obtain necessary business permits and tax issues.
Tax VAT Registration
Tax registration must be completed along with your business registration. You can, however, skip VAT registration since it’s not compulsory until your company reaches the 35,000 euros distance selling threshold. You will need to consult with a Cyprus lawyer to get VAT and EORI numbers.
Business Registration Fees
Every new business has to pay fees, even though they’re not as high as what is obtainable in other countries. When starting a business in Cyprus, you will have to pay three types of fees, including company registration fees, accounting fees, and annual maintenance fees.
Benefits Of Starting A Business In Cyprus
Enjoy Low Fees
Cyprus has one of the lowest corporate taxes in Europe, only 10%. It applies to all types of companies in Cyprus and includes income from all taxable sources, made home and abroad.
Take Advantage Of Tourist Money
Foreign Direct Investment in Cyprus for the year 2019 was about 445 billion USD, which your business can take advantage of. Also, in 2019, Cyprus welcomed at least 4 million tourists from around the world, and if your business serves the industry, you will benefit massively from the windfall.
Ease Of Doing Business
In the 2019 edition of the World Bank’s Doing Business Report, the Cyprus ranking was 57. The statement shows massive improvement and opportunity for those who want to start a business and see it flourish quickly.
Low Crime Rate
Cyprus has one of the lowest crime rates in Europe. Here, they have a robbery rate of 0.20 per 1,000 people, while the EU average is 1.11. You can compare that with Belgium with a robbery rate of 2.53 per 1,000.
Strategic Position And Infrastructure
Cyprus is occupying a strategic location in the world, with many describing it as crossroads to Asia, Africa, and Europe. It also boasts quality infrastructure and communications networks.
If you need help setting up your business in Cyprus, contact oikonomakislaw.com
