As a small island nation located in the Eastern Mediterranean, Cyprus has emerged as a haven for entrepreneurs seeking to set up shop in a highly conducive business environment. The country’s strategic location, favorable tax regime, and highly skilled workforce represent some of the factors that have made it attractive to startups and established businesses from around the world.
The country has a highly diversified economy that is founded on services, tourism, and manufacturing. Services sector accounts for the lion’s share of the economy, with financial and professional services accounting for a large proportion of this. The tourism industry has also been growing at a steady pace, with a steady influx of visitors drawn to the country’s beautiful beaches, blue skies, and rich history. Additionally, the manufacturing industries in Cyprus are thriving, with a focus on technology, electronics, and pharmaceuticals.
One of the most alluring aspects of the Cypriot economy is its tax regime, which is highly favorable to businesses. With a corporate tax rate of 12.5%, Cyprus is one of the most attractive locations for businesses seeking to set up a company in a low-tax jurisdiction. This low corporate tax rate has been instrumental in attracting multinational companies to the country, making it a hub for companies seeking a location to situate their Middle East and North African operations.
Additionally, entrepreneurs and businesses operating from Cyprus are exempt from capital gains and dividend taxes, making the country an attractive destination for investors seeking to make a return on their investments. The country has also double taxation agreements with over 60 countries worldwide, providing companies with more options for global tax compliance.
Great infrastructure and location
Cyprus also offers several other advantages to entrepreneurs setting up a business in the country. One such advantage is its highly skilled workforce, which is well-educated with access to a wide range of top-notch training and educational institutions. The country has a strong tradition of providing quality education, with both public and private universities providing specialized training in a wide range of disciplines. Additionally, the country’s bilingual status (Greek and English) provides a unique opportunity for businesses to tap into a bilingual workforce, which is highly beneficial when dealing with international partners and clients.
Another advantage of doing business in Cyprus is its strategic location, which serves as a gateway to three continents (Europe, Asia, and Africa). The country is located just a few miles from the coast of the Middle East, providing easy access to markets in the Middle East and North Africa. Additionally, the country enjoys a stable political environment and has signed several free trade agreements with countries globally, providing companies with access to a wide range of markets worldwide.
Tech and startup-friendly
One of the most promising sectors for entrepreneurs in Cyprus is the technology industry. The country has been actively promoting the growth and development of the technology industry, with several initiatives aimed at providing support to startups and emerging businesses. The Cypriot government has set aside a fund for supporting businesses in the technology industry, with a key focus on transforming the country into a hub for digital innovation.
The island has become an attractive destination for blockchain businesses and the government of Cyprus has implemented pro-blockchain policies, making it easy for blockchain businesses to set up and operate in the country. The Cyprus Security and Exchange Commission has also introduced a regulatory framework that governs the operation of blockchain-based businesses, ensuring that the industry is safe and efficient.
Cyprus has a world-class technological infrastructure that is essential for the growth and development of blockchain businesses, including fast and reliable internet connection, top-notch data centers, and advanced mobile networks. These facilities make it possible for blockchain businesses to operate efficiently and effectively, with minimal downtime.
Additionally, the country boasts a thriving startup ecosystem, with several accelerators and incubators providing support and mentorship to startups. There are also several angel investment networks and venture capital firms that provide funding to early-stage companies, which have the potential to grow and scale.
In conclusion, Cyprus provides a favorable environment for entrepreneurs seeking to start and grow their businesses. The country’s low corporate tax rate, highly skilled workforce, strategic location, and supportive government, make it attractive to startups and established companies looking to establish a presence in a low-tax jurisdiction, while enjoying access to a highly skilled and motivated workforce. With its strategic location, the country provides easy access to markets in Europe, Asia, and Africa, making it an ideal location for businesses seeking to expand globally. The country’s focus on developing the technology industry has also provided a unique opportunity for startups and emerging businesses to leverage the country’s resources and build their businesses within a supportive ecosystem.
Setting up a Cyprus company
- Choose a business name – The first step to set up a company in Cyprus is to select a name for your business. Your business name must be unique and not already registered in the country.
- Hire Fast Offshore – Hire a corporate service provider that is familiar with the process of setting up a company in Cyprus. They will help you with the registration process and draft the necessary documents. Fast Offshore has 26 years of experience in corporate services and extensive experience in Cyprus.
- Incorporation – Incorporate your company with the Department of Registrar of Companies and Official Receiver. You will need to fill out an application, provide identification documents, and pay the registration fee.
- Obtain a Tax Identification Number (TIN) – Once your company is incorporated, you need to obtain a tax identification number (TIN) from the Cyprus Tax Department.
- Register for VAT – If your company is going to trade in Cyprus, you need to register for VAT with the Cyprus Tax Department.
- Register with Social Security – Register your company and your employees with the Social Insurance Services of Cyprus.
- Open a Bank Account – Open a bank account in Cyprus for your company.
- Register with the Chamber of Commerce – Register your company with the Cyprus Chamber of Commerce.
- Obtain any necessary Licenses – Depending on your business activities, you may need to obtain additional licenses from the Cyprus government.
- Hire Employees – Finally, once you have completed all the necessary registrations and obtained all the necessary licenses, you can start hiring employees for your company in Cyprus.