Featured image by Dimitris Vetsikas on Pixabay
Cyprus is an island country in the Eastern Mediterranean, the third largest country in the region. It also has the third largest in population in the Mediterranean. Cyprus boasts a high human development index and an advanced, high-income economy. In fact, it is regarded as one of the fastest-growing economies in the European Union, with a GDP of 1.6%.
Businesses thrive in Cyprus because of several factors there that benefit them. For one thing, its strategic location connects it to other major markets in the world. For another, it is a popular tourist destination. So if you are considering starting a business in Cyprus, there are many opportunities you can take advantage of.
Starting a business in Cyprus requires the same level of preparedness that you need to start any kind of business anywhere in the world. However, in Cyprus there are few restrictions on starting a business, and the entire process of setting up your business is usually smooth.
What’s more, it’s as easy for foreign investors to do business in Cyprus as it is for locals. This explains why it is one of the popular destinations for foreign investment in the region.
However, just as with most other business ventures, it is important to conduct proper research before you start a business in Cyprus. In this article, we outline five steps you need to follow to start a company in Cyprus.
RELATED ARTICLE: BUSINESS IDEAS FOR STAY-AT-HOME PARENTS
1. Research the Business Environment in Cyprus
First, identify a market for your product or service in Cyprus. Next, conduct thorough research of the country’s business atmosphere.
Even though Cyprus generally has a favorable climate in which businesses thrive, you need to dig deeper into the process of incorporating your business in this country. Understanding how things work in Cyprus is an important aspect of starting your company in the country.
2. Register Your Company
You must register your company before you can operate in Cyprus. This is the first real step in ensuring that your business is recognized as a legal and taxable business.
To make the entire process easier, your best bet is to employ a lawyer or a law firm that has experience with setting up foreign companies. For example, a law firm such as Oikonomakislaw.com has a staff of lawyers who are skilled in the area of business registration in Cyprus.
3. Learn About Business Regulations in Cyprus
Whether your company is a sole proprietorship, a partnership, or a limited liability company, you need to understand the various regulations that apply to each. Every country has its own unique set of regulations that apply to different types of business.
Moreover, having a clear understanding of these regulations will allow your company to operate smoothly, especially if you are a foreigner. This is why you need an experienced law firm to help you through the entire process. They will highlight important regulations that you might otherwise miss.
4. Obtain Licenses and permits
Every country has a series of licenses and permits that you need to obtain in order to operate a business. The types of licenses you will need will be determined by the type of company you are starting. Approach the necessary agencies to obtain these licenses and permits to prevent disruptions to your business operation.
5. Set up Your Accounts and Taxes
Ensure that you obtain a VAT number by registering your company at the tax agency. In Cyprus, your company must be registered for VAT if the activities in your company include trading.
If you have decided that you want to set up a business in Cyprus, we hope these tips will help.
For more tips and ideas for starting a business, be sure to browse our blog often.