Business in Cyprus
Every year, the influx of investments into the developing economy of the Republic of Cyprus is increasing. This is facilitated by attractive taxation conditions, benefits for various business areas. Among the many areas of entrepreneurship, the most attractive in terms of profitability can be distinguished:
Construction area. This area is supported by the government, especially for foreign private companies. Business is favored by the high rate of development of the region and the constant shortage of construction companies. Construction involves obtaining a license to perform work from the state.
There are several types of activities in this area:
cleaning after construction;
supply of materials for construction;
execution of finishing works.
IT industry. Since 2019, Cyprus has begun to actively contribute to the development of this area. The country offers various immigration, tax, financial benefits to foreigners. For the development of the IT sector, a state national program for stimulating innovation and research is provided. Very attractive conditions for organizations that work in the field of artificial intelligence. There are several areas of activity here:
maintaining and maintaining IT for business;
Hotel business. Since the island is located in the Mediterranean Sea and is a tourist state, a huge flow of tourists visits the country every year. The direction of hotels, restaurants, renting apartments and villas is one of the most popular, as they have a high profitability.
Sphere of entertainment and beauty. To attract tourists, in addition to the standard set, such activities as bars, nightclubs, children's playrooms, and spa salons are suitable.
The field of maritime transport. The island is actively engaged in trade with other states. This makes the services of sea vessels for transportation and transportation very popular. Among the reasons for opening a shipping business in this direction are:
simplified vessel registration;
no tax on the sale of the vessel;
profits that come from merchant ships are not taxed.
ground transport sector. Transport logistics is becoming more and more popular every year. This is due to the development of the economy and trade turnover. In addition to the commercial direction in the transport business, the field of excursions for tourists by land transport is actively developing.
OPEN A COMPANY IN CYPRUS
Cyprus is a state that is interested in the inflow of foreign capital. Thanks to this, entrepreneurs are offered a low tax rate of 12.5%. When trading with EU countries, additional VAT is added. Many areas of activity, such as IT, intellectual property, may qualify for additional financial benefits.
The procedure for opening a new organization by non-residents does not take much time and can be carried out remotely. To speed up the process, the easiest way is to contact a professional agency, where they will provide services for the preparation of all documents and will accompany every step when starting a business.
To register an organization, you need to go through several stages:
Creation of the company name. It must be unique and not have similar names in the public register. The abbreviation LTD must be present at the end of each name.
Choice of business direction. Public and private companies can operate in Cyprus; partnership; branches of foreign corporations or individual activities.
Collection of necessary documents. All required data must be submitted in Greek or English. For non-residents of the country, it is necessary to perform a translation with notarization of the submitted documents.
Drafting of the company's articles of association and memorandum. The charter should contain all the important nuances of the company's activities: area of work, authorized capital, value and number of shares. When submitting data, several certificates will be issued: on the shareholding structure, on the director, on the registration of the company.
A certificate that confirms the legal address of the organization. Having a legal address is a prerequisite for doing business in Cyprus. Services for obtaining it can be provided by law firms that help non-residents start a business.
Opening a bank account. A very important stage, which involves the opening of a corporate account and the formation of the authorized capital of the company. To do this, you must submit documents and fill out forms in the selected bank according to its requirements.
Tax registration. It implies obtaining a tax number for paying taxes.
Registration of the company's beneficiaries with the UBO (Registrar of Beneficial Companies).
When starting any business, you should develop a business plan and think over its financing in detail. Registration of a new company will not take too much time, so it is worth distributing the budget in detail and leaving a certain percentage for force majeure cases.
As you know, the first 1-2 years are the most important in starting a business. Therefore, to promote the company: for advertising, various services, personnel, a considerable percentage of funds go. This is important to consider, as well as the fact that some unaccounted expenses may remain. Accordingly, it is important to leave a part of the budget for such cases. If there is not enough money for business development, you can apply for loans in the banks of the island.
HOW TO DO BUSINESS IN CYPRUS?
What you need to know for those who want to become a businessman in Cyprus:
A non-resident of the country can open a company with the help of a legal agency that will help in the preparation of documents and registration on the territory of the state.
Cypriot law guarantees the protection of business assets and offers many bonuses under certain conditions. For example, for those who have changed their place of residence to Cyprus, there is an opportunity to receive dividends that will not be subject to any taxes.
- Read alsoCyprus News