Cyprus, a member of the European Union, boasts of being the third largest island in the Mediterranean. And although small in size, Cyprus offers a variety of business opportunities to both foreigners and locals. Starting a business in Cyprus is beneficial for your international venture and tax planning, one of the major benefits being its economic stability. It has a modern, free-market, service-based economy giving international investors and domestic businesses the confidence to invest, grow and prosper. The tertiary sector of services is considered the backbone of the Cyprus economy and with a high income per capita, the consumer market is particularly strong.
Benefits of Setting Up a Business in Cyprus
- The place is strategically located – at the crossroads of Europe, Africa and Asia
- It has a dynamic tourism industry
- The government has a pro-business approach toward new reforms
- Cyprus has one of the lowest corporate tax rates in the European Union (EU)
- The country 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
- There is state-of-the-art infrastructure and telecommunications network
Business Opportunities in Cyprus
1. Construction Company
The government of Cyprus provides substantial support to individuals looking to start a company in the construction business. Massive infrastructure and development of private sector are the agendas due to which the authorities try to bring in more people to invest in this sector.
2. Education Consultancy
Cyprus has few of the finest universities in the world, and the preferred language of communication there is English. Because of this, many international students fly to Cyprus to get a higher education.
3. Property Rental Market
This sector is booming in Cyprus. If you have the required capital to build an office complex in any business district in Cyprus, you will surely reap huge returns on your investment. And even though this type of investment is for a long term, you can still recoup your capital within a short period of time.
This sector occupies a dominant position in Cyprus’ economy. Tourism has proved to be the most resilient of Cyprus' commercial sectors, generating 12% of the country's GDP in 2016 – a year which defied expectations and was record-breaking in visitor numbers, which reached 3.18 million.
5. Shipping Industry
Maritime industry is one of the most successful export services with over 130 shipping companies. The country’s maritime capital, Limassol, is home to some of the world’s most influential names in shipping. Investing in this sector will bring more profits than any other sector.
6. Transportation Business
This sector is very much open for private establishments. If you are thinking of starting a business in Cyprus, then you should consider starting your own transport business. You can specialize in road transportation, water transportation, or even both if you have the capacity. And if you have financial muscle, then you can venture into air transportation.
7. Insurance Brokerage Company
Insurance brokerage firm is a thriving business in Cyprus. If you are a trained insurance practitioner and you are thinking to start your own business, then you should consider starting your own insurance brokerage firm.
How to Start a Business in Cyprus?
For Cyprus company incorporation, one has to first get a company name approved by the Cyprus Company Registrar. After this, they have to provide a set of documents to get a proper license for the business.
Submit the following documents and forms to the Department of Registrar of Companies:
- HE1 Form
- HE2 Form
- HE3 Form
- Memorandum of Association
- Articles of Association
- Passport copy of Directors and Company Secretary
- Address proof of the office
Once the Certificate of Incorporation is obtained, the registered company needs to obtain a Value Added Tax (VAT) Number by registering itself with the Tax Department. It is also required to obtain Social Contribution registration at the Ministry of Labor, Welfare and Social Insurance.
The other requirements for Cyprus company formation are:
- 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 friendly for foreign investors. A company can be incorporated in 5 days and a bank account can be opened in 10-15 days. Rents are low, electricity, salaries, VAT rates are also low. There is a huge tank of university educated experts to populate your business. Investment opportunities in Cyprus are booming at a rapid pace and registering a business in Cyprus is simple, fast and comparatively cheap when it comes to costs, compared to other countries. If this information was helpful and you are looking to set up a business in Cyprus then follow all the rules and procedures of the authorities, and you are good to start your own business.