In the past few years, Cyprus has emerged as a leading business-oriented country in Europe. The country has continued to attract investors from around the world and  a number of global companies have set up their European headquarters in the country.
Book Free Consultation With Our Experts For Company Formation In Cyprus

Reasons for Company Registration Cyprus

There are a number of reasons why many businesses are opting to have their companies registered in Cyprus. Some of these reasons are:

Low taxes in Cyprus for Companies

Companies prefer countries that have a low tax rate. In such low-tax countries, the company can keep more of their profits instead of giving them to the government. Cyprus has some of the lowest corporate taxes in the European Union. In fact, the corporate tax rate of 12.5% is much lower than the 22% average corporate tax rate around Europe. For consumers, the country’s VAT is just 19%, which is slightly below the average VAT of the EU.

Strategic Location For Company Incorporation

Companies, especially those doing business internationally prefer countries that are strategically located. Cyprus is one of the best-located countries in the world as it is located between three continents Africa, Europe, and Asia. The country has two modern airports and five ports making it easy to access.

Cyprus Is A European Union Country

Cyprus joined the European Union in 2004. Today, the country uses the euro for transactions. The euro is the second-most powerful currency in the world after the dollar. Further, companies that are incorporated in Cyprus have access to the European Union. The EU has a population of more than 500 million people who have high disposable incomes. This means that your Cyprus companies will have easy access to all these businesses.

Young, Vibrant, And Well-Educated People Located In Cyprus

Cyprus companies have an access to a rich pool of young people who are well-educated. Indeed, the country has some of the most well-known universities in Europe. Some of them are the University of Nicosia and the University of Cyprus. Therefore, regardless of the industry you are in, you will always get quality professional and technical workers.

Business Incentives In Cyprus

The Cypriot government has put in place several business incentives for international businesses. Other than the taxes incentives, the government has put in place additional incentives like the investment passport program. This is a program that gives citizenship to people who invest €2 million in the economy. With this citizenship, the foreigners can travel and do business in any European Union country. Other incentives that the government has put in place are:

• The creation of an industrial free zone. Companies doing business in these zones don’t pay any customs duties.
• Industrial training schemes that subsidize on the cost of training the staff.
• Grants and other incentives to investors in some sectors like energy, technology, and research and development.
• The country does not withhold taxes on dividends, interest, and royalty that are made abroad.
• Intellectual Property (IP) box. For a company registered in Cyprus, the government offers a 80% deductible notional expense. This applies to issued patents, copyrighted software, and utility models.
• Equity that is introduced to the country in form of paid-up share capital maybe eligible for an annual notional interest deduction.

Cyprus Has A Great Weather

Cyprus is one of the European countries that you can experience sunlight for most of the year. This means that your Cyprus registered companies can work throughout the year with no interruption. If you are in the tourism industry, the great weather coupled with the excellent tourism sector has so many opportunities. In fact, the number of tourists visiting Cyprus has been on an increase.

Excellent Infrastructure

Infrastructure plays an essential role in promoting business opportunities. The Cyprus government has spent millions of dollars to improve the country’s infrastructure. The roads are well-paved, and there are two international airports and five ports. The airports and ports are well-maintained making it easier for Cyprus companies to operate.

Business Opportunities for Companies Registered in Cyprus

There are many business opportunities that are available for Cyprus companies. Here are some of the most common type of companies in Cyprus.

Financial Service Companies in Cyprus
Cyprus is best known for its financial sector. While Cyprus is a small country, it plays an outsized role in the world financial markets. In fact, the country is the headquarter of some of the leading financial investment companies in the forex brokerage, cryptocurrencies, and investment banking sectors. Therefore, if you are looking for a company incorporation for your financial investment business, Cyprus is the best place for you.

In Cyprus, the Cyprus Securities and Exchange Commission (CySEC) monitors all regulated financial investment companies, which is one of the most respected financial regulators in the world.

Hospitality Industry
The Cyprus government has been working hard to promote Cyprus as the ideal tourism destination in the world. In fact, the number of tourists have been on an upward trend for many years. In 2018, the country welcomed more than 3.93 million tourists. This was a 7% increase from a year earlier. In 2012, the number of tourists were just 2.5 million.

There are reasons for this. First, Cyprus is known for its excellent weather as mentioned above. Second, Cyprus has some of the best tourist features like the Paphos archeological sites, Nicosia old city walls, Limassol castle, and Ayia Napa Monastery. In addition, the country is known for its award-winning beaches. In 2018, the Nissi beach was voted as one of the 25 beaches in the world.

Construction Industry
While Cyprus has a highly-developed infrastructure, it has a long way to go. In fact, the government has put infrastructural development as the main agenda. There are roads, residential, and commercial projects that need to be done. Therefore, there are many opportunities for construction Cyprus companies.

Education Industry
Cyprus has some of the best-known schools and universities in Europe. However, as the population grows, there is a need for more schools, colleges, and universities in the country. This means that there are opportunities for a company registration Cyprus in the area of education.

Shipping industry
As a small country with minimal resources, Cyprus imports most goods from other countries. Most of the goods are imported from countries in the European Union. As a result, the shipping industry has been very vibrant. In fact, there are more than 130 shipping companies registered in the country. Still, there are many opportunities for a company registration Cyprus in the shipping sector.

Technology companies
The Cyprus government has put in place major incentives to attract technology companies in the country. Some of these incentives are related to taxes, intellectual property, and research and development (R&D). There are also many young people who have studied about technology. In fact, many technology companies like Microsoft and IBM have set up bases in Cyprus. Therefore, there are many opportunities for a company registration for technology businesses.

Steps for Company Registration Cyprus
Like in all countries, registering a company takes time and is a complicated process. Therefore, it is always important for foreigners and nationals wanting to register a company in Cyprus to use a good company registration consultant. At Evagoras Anastasiou Law Firm, we are the leading Cyprus company formation consultants. Here are the steps you need to take to register a company in Cyprus.

Information needed for company registration Cyprus
The following are the required information to register a company in Cyprus. These documents are:

• The company name. This name should be in English or in Greek. It should also not be used by another company.
• The company’s purpose and business activities.
• The company’s shareholders.
• The company’s directors. It is advisable that one of the directors is resident of Cyprus so that the company can be benefitted from the available tax incentives.
• The company’s secretary.
• The company’s registered office. It is mandatory that the address is located in Cyprus.
• Total number of shares and the number of their nominal value.

Provide this information at our firm and an expert of our team will deal with the rest. All required documentation will be prepared and submitted at the Cyprus corporate registry to finalize the incorporation. We will also submit your documents to the required associations.

F.A.Q

How long does company registration Cyprus take?

If you have all the information and you are using a good company registration professional, the process of registering a company in Cyprus will be completed within two weeks.

What are the different types of companies that can be registered in Cyprus?

The most common types of companies you can register in Cyprus are sole proprietorship, partnerships, limited liability companies, subsidiaries, and joint ventures. In addition, you can register non-profit organizations in Cyprus.

Where are companies registered in Cyprus?

Cyprus companies are registered at the Cyprus company registry. which is part of the commerce ministry.

Do I need a company registration consultant to register my company in Cyprus?

While you do not need a company registration company in Cyprus, it is highly-recommended that you use one. These companies are expert in the industry and know how its done in a fast and efficient manner.

Summary

1. Cyprus is one of the best places to do business in the European Union.
2. The Cypriot government has put in place a number of incentives to attract local and international businesses to register a Cyprus company.
3. Cyprus companies keep most of their money because of the attractive tax policies.
4. Foreigners need a special visa to register a Cyprus company.
5. Many international companies have set up their operations in Cyprus because of the good business environment.
6. It takes about two weeks to get a company registered in Cyprus.
7. Some of the best business sectors to invest in Cyprus are finance, technology, shipping, transport, and hospitality.
8. Foreign investors who register their businesses in Cyprus have the option to invest EUR 2 million and become Cypriot
9. Cyprus business registration process is fast and simple.
10. Cyprus company law chapter 113 is the main act responsible for business registration in Cyprus