It is nothing new that Cyprus is has a fantastic system for any business to thrive. The tax system is business-friendly, the workforce is educated, and the infrastructure is out of this world. However, without proper assistance, steering your business to success through the regulatory environment complexities by yourself can be challenging.
The economy is service-based and the market modern and there are few restrictions. This allows both local businesses and foreign investors to invest and develop their businesses with confidence in the system.
Cyprus is known to be the country in the EU with the lowest business operation and set up costs. However, the healthy GDP of the nation and the high-level of consumerism have little or no effect on this. Business owners simply enjoy the positive and productive impact that the numerous foreign banking units and multinational firms have on the economy.
However, every start-up business needs the assistance of a team that understands the investment system of the country to succeed. According to the IFC (International Finance Corporation) and World Bank, Cyprus ranks low on many Establishing Business rankings. This is the major reason why your team needs to understand the investment structure and system of Cyprus for your business to thrive. Enhance your business’ chances to thrive in Cyprus’ economy with the amazing assistance that One Visa has to offer.
Here are the top business challenges you are most likely to experience in Cyprus:
- Business Start-Ups: You will need to navigate through 6 procedures to successfully start a business in Cyprus. The first is that your business needs the approval of the Registrar of Companies. You also need to submit both articles of association and memorandum to the Registrar and the “Receiver”. Next, your business must be registered with for VAT with the Finance Ministry and also for Social Security Contributions with the Labor Ministry, and the Commerce for Tax Ministry. These procedures may take between 240 days to 325 days to be completed.
- Handling Permits for Construction: Two features associated with property that need proper consideration in Cyprus are permit costs and time consumption. Typically, you will have to wait more than 2 years on average just to obtain the construction permit. The time it will take to obtain a construction permit in Cyprus exceeds that of Eastern European countries and also OECD and Asia. The truth is that you will only have to go through 9 procedures to obtain the permit. However, both municipalities and the town-planning departments tend to bog down the process.
- Acquiring Electricity: We all are familiar with the importance of electricity for any business. However, completing the processes required to acquire electricity can be time-consuming. The reason is that you have to go through the Electric Authority in Cyprus for electric connections to be connected to any building. This organization will then check your building, give you the installation costs, perform any work that has to do with external connections, and install a meter. Typically, these processes take more than 240 days.
It is true that Cyprus has one of the best climates in the world for businesses to thrive. However, it is important that you partner with a team of people that are aware of the investment structure. This will increase your business’ chances of success.
- Top Business Challenges You are Likely to Experience in Cyprus - March 16, 2020