Doing business in Cyprus is pretty easy and straightforward. Unless you are dealing with any of the below industries no operating licensing is required:
Cyprus Regulated Industries:
- Banking, Investment, Capital Markets
- Insurance
- Travel Agents
- Financial Consultants (Valuators, Accountants, Auditors)
- Lawyers
Consequently all other businesses can commence trading just by complying with the local tax and vat laws which are easy to meet. Simply contact a regulated audit and assurance firm to brief you on all accounting, tax, vat, import / export matters that can affect your business. Once those have been established your local accountants and local lawyers will be assisting you on an ongoing basis with any regulatory compliance matters as they emerge.
Compliance matters for regular trading companies:
VAT Registration
All companies and individuals trading in Cyprus must be VAT registered as the VAT registration threshold is really low Euro 15,600.
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VIES / Intrastat
EU trading amongst companies is subject to VIES and Intrastat filings, a standardised approach that your local accountants / auditors can assist you with.
Tax Number
All Companies and local management appear on the financial statements but have the local Tax Identification Numbers. Foreign directors and shareholders may not have local tac numbers if they are not tax residents in Cyprus.
Social Securities
All employees and self employed persons must be registered with the social security system in Cyprus.
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Payroll Law & Taxes
Part of company compliance.
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Insurance Obligations
Fire & theft, employers liability insurances are common for all businesses in Cyprus and mandatory by law. A small amount of fees that must be paid on an annual basis.
Company Compliance
Your local regulated audit and assurance firm will ensure that all company statutory requirements such as accounting, tax, payroll, vat and submission of audited financial statements are met according to regulations.
Conclusion
Cyprus is a EU regulated island and as such contacting business in the Republic of Cyprus is very easy. Even the regulated professions mentioned are easy to contact; the only matter is how fast licenses can be obtained. As expected, banking and capital markets licenses take longer than the rest of the regulated professions.
Information about relocation to Cyprus can be obtained here
Information about incorporating in Cyprus can be obtained here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
