Many small business owners consider expatriating in lovely places. Great weather, developed transportation systems, more lenient tax regimes, and better quality of life – these are the qualities of countries that bring in lots of small business investors.
Fortunately, these are also the qualities that best describe Cyprus. And the question of how to open a small business in Cyprus becomes an alluring idea for business owners.
Cyprus is a small island country in the beautiful Mediterranean sea. The country has a rich culture, updated transport system, low cost of living, and an energetic flow of tourists worldwide. For many, moving and settling to start a business in this area of the world is a beautiful dream come true.
Establishing a business overseas might be an easy feat for large companies. But is it also possible to register and open a small business in Cyprus? Yes, it is possible.
Though there might be some rough areas in the process, Cyprus is open for businesses. You can do the application, registration, and other processes independently. But it is less stressful, faster, and more cost-effective to seek the services of a local specialist or agent.
If the idea of opening a small business on the gorgeous island of Cyprus appeals to you, read on to get more facts on how to navigate this complex yet exciting process.
Starting Your Small Business in Cyprus
One important thing to remember in setting up a small business in Cyprus is following the same simplified process that local companies do when they start their business. There are no special conditions or penalties if you pursue this track.
The lovely island of Cyprus is eager to bring more investors, open new businesses, and welcome entrepreneurs into the country. You do not need to have a local Cypriot partner, and you can start your small business without a minimum capital requirement.
The country’s business laws require a minimum share capital of 1,000 Euros. But this is not required upfront on the company’s bank account. A small business may put it up at a later time. Foreign companies may also pursue and acquire established local companies.
Moreover, self-employed or freelance citizens of the European Union can visit Cyprus even without contracts or prospects for work. Thus, they can quickly assess the local ambience before setting up a small business in Cyprus.
What Types of Small Businesses Can You Open In Cyprus?
These are the types of businesses considered as legal entities in the country:
- European Company (SE)
- Limited or General Partnership
- Public or Private Company
- A branch of an overseas company
What is the First Step to Open a Small Business in Cyprus?
You may adopt a DIY approach in establishing your small business in Cyprus if you have time and the inclination. However, a more sensible strategy is to seek the services of a local specialist to avoid unnecessary errors and waste of resources.
Local business specialists know more about the country’s business laws, rules and regulations. Thus, it will save you more time, money, and effort. You can start the application for your business and have it registered even if you are not in the country. More so, you can ensure that your business operates within the country’s laws with the help of a local agent.
Registering Your Small Business
Whether you opt to do it on your own or hire a specialist to help you open a business in Cyprus, it is required to register the company name to the Registrar of Companies. You can provide three business name options and pay for the business name reservation.
Once approved, the registered business name will be reserved for six months. This process can take one to two weeks to complete depending on the availability of the documents and the nature of the business. Even if the approval takes a month, you can soon start operating your business shortly after you get the certifications and approval from the Registrar of Companies.
Banking Requirement for Small Businesses in Cyprus
After you have completed the business registration and received the certification from the authorities, you should proceed with obtaining a local bank account. The business laws in this country are more lenient with the minimum required amounts for the company bank account.
However, some banks ask for more documentation for business owners. You can expect to provide any or all of the following documents:
- Proof of the registered address of the company
- Company’s certificate of incorporation
- The company’s Memorandum of Articles of Association
Conclusion
Cyprus is one of the top tourist destinations in the Mediterranean Sea, but there are more than wonderful views and tourism. Setting up a small business in Cyprus is a simple process with great rewards compared to other offshore locations.
There may be challenges in complying with business laws and requirements, but with the help of some local agents, the process becomes more bearable and manageable.
Setting up, registering the business, and having banking arrangements are essential steps before the company becomes operational. Ideally, you can learn to navigate and understand the country’s business laws to comply with all their requirements.
Even if you are in another country, you’ll soon have your small business ready for operation in no time. However, if you are not in Cyprus, seeking assistance from a local specialist who can manage the entire process is permissible.
Further, take heed from people who are knowledgeable of the ins and outs of the business systems in the country to hasten the process of registration of your business.