In the past 6 years, Cyprus has emerged as one of the fastest-growing economies in the European Union. In 2018, the small island nation had an economic growth of more than 4%, which was higher than that of the EU’s average of slightly below 2%. Part of the reason for this growth is that the government has been working hard to attract foreign direct investment. It has achieved this by lowering taxes and putting up other incentives such as grants and investment passports. This article will explain how to go about company registration in Cyprus.
Why Should You Register Your Company in Cyprus?
There are several reasons why you might want to register your business in the small island nation. First, the country is strategically-located at the intersection of Europe, Asia, and Africa. This coupled with the fact that the country has advanced infrastructure like airports, means that you can have easy access to the three continents.
Second, as mentioned above, Cyprus has some of the lowest tax rates in the European Union. The country has a corporate tax rate of just 12.5%. This is below the EU average of 22% and below the US tax rate of 21%. In addition, since the country is part of the EU, it means that there is a large total addressable market for all companies.
Third, most of the Cypriot population is made up of well-educated English-speaking young people. This means that you will have easy access to excellent talent in the country. Further, the country’s wages are much lower than that of other European countries like Germany and France.
Fourth, Cyprus has an excellent weather. In fact, the island experiences sun throughout the year. This is unlike other European countries.
How to Register a Company in Cyprus
Like in all countries, you need to have your company registered to operate legally. To register your company in Cyprus, it is recommended that you use an attorney, who understands local and European Union laws. Using the attorney will save you time and money and ensure that your business operates legally. To get an attorney, if you have a local contact, it is recommended that you use referrals. If you don’t have a local contact in Cyprus, you can easily find a good attorney in Cyprus by searching the web.
An attorney will help in a number of ways. First, they will give you a brief background of the existing laws of doing business in the country. Second, they will tell you the type of documents that are needed to register a company in the country. These documents include your identification documents, certificate of incorporation, certificate of shareholders, proposed company address, and financial details. They will also tell you the different types of businesses that you can register in the country like limited liability companies, sole proprietorship, a branch of an overseas company, and a partnership.
Third, they will help you draft the articles of association, which are required by law. Further, they will help you have nominee shareholders if you want to keep your business details private. Other services that your lawyer can offer you are immigration, intellectual property protection, joint ventures, mergers and acquisitions, and labor laws.
After filling all the required documents, the attorneys will help you submit the documents to the ministry of commerce. You will get a response about your business registration within a week. If the business is approved, you will get a certificate of incorporation. With this certificate, you should now apply for a tax ID and with the ministry of labor, welfare, and social insurance.
Cyprus is an ideal place to register your business and if you are concerned about high taxes and if you want to have access to the European Union market. While it is possible to go through all the steps by yourself, it is highly recommended that you use the services of a good corporate lawyer in Cyprus. As mentioned, these lawyers have the knowledge and experience of registering companies and all the legal procedures that are required.