What to Consider When Starting a Business in Cyprus

Oct 20

What to Consider When Starting a Business in Cyprus

3 years after the 2013 economic downturn in Cyprus, the country has established solid laws, expanded their industrial reach, and regained stability. Now, many investors are now lining up to start a business in the country. Why?

For one, the country offers many great economic reform programs. Business owners and investors can easily take advantage of the low corporate tax. The Cypriot market is also an effective gateway to Eastern Europe, Russia, Persian Gulf and Middle East. The advanced infrastructure and telecommunications network add to the ease of doing business transactions. Likewise, the workforce is highly skilled and educated.

So how do you start a business in Cyprus?

Starting up a business in Cyprus can be done in several ways. An investor can opt to set up a local office or branch, joint venture, franchising, e-commerce, direct exports and appointing a local distributor or agent. Getting a local business partner is, of course, imperative as they do not only give useful marketing knowledge on the local environment, they can also help you widen your social network.

Prior to setting up a business, you will be required to register with Cypriot Registrar of Companies. Aside from the registration, you should also secure all the pertinent licenses from the designated regulatory authority relevant to the type of business you are planning to operate.

What legal matters do you need to attend?

The legal system used in Cyprus is based on the principles of English Common Law. The country is also adopting all EU laws and regulations. If you’re planning to start a business in Cyprus, you need to contact a DIT team that can assist you in finding legal and tax advisers. This way, you can avoid making unnecessary mistakes and speed the processing and operations of your business in the country.

It is also important to know and abide by the technical and standard regulations of running a business. If your business involves products for export, make sure that they meet the EU standards. Keep in mind that Cyprus is strict when it comes to the labelling law. You can only use a sticker that is approved by the Ministry of Energy, Commerce, Industry and Tourism.

What do you need to know about taxes in Cyprus?

Another thing to consider when planning or starting a business in Cyprus is their tax law.  Cyprus has signed up for a double taxation agreement with the UK. Any company of business that offers goods or services manufactured in Cyprus are covered by value-added tax or VAT.  As a business owner, you should be knowledgeable about the different VAT rates applicable to your business’ products and services.

If your business is producing taxable supplies, you’ll need to register at Cyprus VAT Register. Non-resident companies are also covered under the VAT regulations. If you want to know more about these regulations in taxation, you can consider seeking help from Vat Advice Cyprus. They will guide you not only in starting a business but also regarding the business taxes. All you have to do is to contact a representative of the company and discuss all the taxation matters.

Conclusion

One of the keys in succeeding in a business venture under the Cypriot flag is to fully prepare. Don’t go to a marketing battle unarmed. Equip yourself with the right knowledge, and success may not be far off.