How to Start a Business in Cyprus

Starting a business in Cyprus has become more appealing to investors.

Starting a business in Cyprus is much like starting a business in the United States. Cyprus is a Eurasian island country in the Eastern Mediterranean, south of Turkey and west of Syria and Lebanon. If your intentions are to do business in Cyprus, it is paramount that you research the country ,including its history, culture, people, and, naturally, the business environment. Since it has joined the European Union (EU), Cyprus no longer requires EU citizens to work with a Cypriot partner to start a business, making the country attractive to foreign investors. The majority of foreign businesses in Cyprus are linked to leisure and catering industries, followed by property investment and development.

Instructions

1. Register your company name. In Cyprus, it is required to register your business with the Registrar of Companies. Contact the Registrar of Companies and reserve your company name and get your initial approval. This process takes about two or three days, and costs about twenty-six euro ($1EUR=$1.25USD).

2. Draft a Memorandum and Articles of Association. These documents describe the rules that will govern the company and how it will be operated. There is no standard form used by the registrar for memorandum and articles. In Cyprus, it is required that lawyers be used to draft the memorandum and articles for newly formed companies. Seek an attorney licensed in Cypriot business law to prepare these documents.

3. Submit the memorandum and articles to the Registrar of Companies. Once you have your documentation completed by the attorney, you must visit the registrar for various filings and certifications. While you are at the registrar, fill out the forms to establish directors, a secretariat and a registered office.. A declaration (swearing as to the fidelity of your documents) from your attorney is also needed. The registrar will provide certified documentation, including shareholders certificates, certificate of incorporation, and registered office address certification.

4. Register with the Ministry of Commerce. The ministry of commerce performs a variety of functions. The three registrations that must be made with the Ministry of Commerce are: company tax registration, VAT (value added tax) registration, and Social Contribution registration. Fill out the appropriate forms supplied by the registrar to complete your registrations. There is no charge for these registrations. The registrations with the Ministry of Commerce can be done in one day.

5. Market your business. One of the most important aspects of starting a business is marketing and promotion of your product or service. Utilize your knowledge gained about Cyprus, its people, culture and business practices, to reach out to your demographic. .

Tips & Warnings

• If you are not from Cyprus, it will be important to establish friendships with locals so they can inform you about their lives and culture.

• Fees mentioned in this article were accurate as of the date of the article's publishing and are subject to change without notice.

References

• Doing Business: Starting a Business in Cyprus
• Republic of Cyprus: Trade Service: E-Commerce
• Cyprus Government Portal: Commerce & Industry

Resources

• Cyprus Department of Registrar of Companies: Business Name Application