Small business owners would find the idea of moving their business in paradisiac island, a couple of hours away by plane from their home, rather enticing, especially when it ensures
- a friendlier tax regime,
- a nicer climate,
- and better everyday life.
Still, the fear of complex procedures, bureaucracy, and massive expenses puts them off. On the other hand, there are places out there that do not fit such descriptions; on the contrary, they offer great opportunities for small business owners to expand and grow with minimal cost and fast procedures. And, within the EU, Cyprus stands out as the best possible destination of the sort.
Let’s take a closer look, shall we?
Permits & Visas
First of all, if you indeed decide to move your business to Cyprus, bear in mind that you are not obliged to have a work permit, residence permit or a visa if you already are a citizen of the European Economic Area.
In case you are not, you will have to file first for a work and residence permit before moving to Cyprus, but note that these processes have been significantly simplified and expedited.
Laying the Foundation
Note that, for a foreigner, setting up a business in Cyprus requires the same steps with local firms. There is no requirement for a Cypriot partner or minimum capital. The minimum share capital of a Cyprus company is just 1,000 Euros, and that sum is not required to be paid directly into the firm's bank account.
A foreigner can also purchase an already established business, while a freelancer or self-employed citizen of the EU can move to Cyprus without prior contracts and employment prospects and then found his/her own small business.
Legal Entities in Cyprus
Now, let us see what kind of business – legal entity one can set up in Cyprus:
- Private firm;
- Public firm;
- Partnership (general and limited);
- European firm (SE);
- A branch of a foreign firm, as long as it preserves the same brand-name.
Ask for Professional Help
While procedures and criteria were indeed simplified, a DIY approach could result in failure, loss of money and disappointment. The best path to follow for both small business owners and freelancers alike is to ask the help of a specializing local agency, which will make sure all and regulations are fulfilled, and your documents and applications are prepared and submitted properly. Thus, you will save plenty of your time and money, and, most importantly, you will not have to be physically present on the island to set up your business.
Registration & Bank Accounts
Next, you will have to submit the firm's trading name to the Registrar of Companies, get approved (usually takes no more than a few days), and then, depending on the kind of the entity, the relevant documents are submitted by a solicitor to the Registrar of Companies. For them to be approved the Registrar needs no more than 30 days, and, with proper help and guidance, you will be able to commence trading within four working days at the most.
Next, you will be eligible to open a bank account, which, in Cyprus, is very simple and fast. You will have to submit your firm's certificate of incorporation, a copy of the Memorandum and Articles of Association (or equivalent constitutional document), as well as proper proof of the firm's registered address. Some banks may also require some additional documents, but nothing you cannot get within 24 hours.
Seen against other options, moving your business to Cyprus is pretty simple, low-cost and advantageous choice, especially when considering the excellent level of public and private services. PHS’ experienced and knowledgeable counsels can provide invaluable information and advice on the matter and make sure your business sets the base of a highly promising future. Click here, and we can schedule a meeting at a time and place of your convenience.