FAQs

1. What is the maximum percentage one can own in a cypriot company?

The Government has recently fully liberalized the Foreign Direct Investment (FDI) Policy for both EU and non-EU nationals in most sectors of the economy. Hence, limitations as per the minimum level of investment and the maximum foreigners/ participation percentage have been abolished in most sectors. Therefore, a foreign investor, regardless of origin, may own 100% of a company’s share capital.

In order to further enhance the foreign investment intensity, the Government has liberalised the Foreign Direct Investment (FDI) Policy not only for EU citizens but also for investors from third countries in most sectors of the economy as from 1st of October 2004:

• Limitations related to the minimum level of investment and foreigners' participation percentage have been abolished, in most sectors of the economy, allowing for up to 100% equity participation in registering companies or acquiring shares in existing companies.

• Administrative procedures have been simplified and measures have been taken to streamline the infrastructure regarding foreign investment, thus reducing the level of bureaucratic intervention and fostering improved economic activity.

• Consequently, foreign companies now have the opportunity of investing and establishing business in Cyprus on equal terms with local investors.

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2. What is the procedure for establishing a company?

International companies may invest and establish business in Cyprus on equal terms with local investors. Foreign investors can register a company directly with the Registrar of Companies, and obtain any licence, if needed, from the appropriate authority depending on the nature of investment. Click here for a step by step analysis of the procedure for establishing a company.

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3. What type of entities may be registered in Cyprus?

In Cyprus the following type of entities may be registered: Companies (private or public), General or limited partnerships, European Company (SE), Branches, and Business Names. For more information click here.

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4. Where can one find a lawyer in Cyprus?

Cyprus Bar Association
11 Florinis Str. CY- 1065 Nicosia
Tel. +357 22873300
Fax. +357 22873013
E-mail: cybar@cytanet.com.cy
www.cyprusbarassociation.org

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5. Where can one find a qualified accountant in Cyprus?

The Institute of Certified Public Accountants of Cyprus acts as an organisational entity for the professional accountants. It supports and promotes their professional interests and protects their reputation. It supervises and controls its members and promotes their professional ethics via the code of conduct that it has established. The contact information are provided below:

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6. Is there an association that represents the interests of international businesses?

The Cyprus International Businesses Association is a non-governmental, independent organisation established to safeguard and promote the interests of International Business Companies (IBCs), their shareholders, managers and staff, in Cyprus. The Association currently has over 130 members, which consist of more than 110 IBCs with fully-fledged offices in Cyprus, as well as about 20 of the so called supporting members which are organizations with interest in the International Business Sector (IBS) and include predominant banks as well as accountants and lawyers. The contact information are:

Cyprus International Businesses Association
P.O. Box 54917, CY- 3729 Limassol
Tel. +357 25 583400
Fax. +357 25 581531
Email: ciba@ciba-cy.org
www.ciba-cy.org

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7. Are there any representative offices outside Cyprus one may visit?

The Investors Service Centre in Cyprus is in close collaboration with the Cyprus Trade Centres abroad, where interested parties may approach in order to obtain information regarding investments and trade. The Investors Service Centre’s informational material is also available at the Cyprus Trade Centres. The contact information of the Cyprus Trade Centres are provided below:

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8. How can one obtain an entry visa?

In order to obtain an entry visa you should contact the nearest Cyprus Embassy or High Commission. For a list of the Cyprus Embassies and High Commissions abroad, you may visit the website of the Ministry of Foreign Affairs.

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9. Are there industrial sites available?

Larnaca Free Zone
The Larnaca Free Zone in Cyprus, has been established under the auspices of the Ministry of Commerce, Industry, and Tourism, in order to facilitate export-oriented investments by offering an even more convenient business climate. Any person can apply to the Ministry of Commerce, Industry, and Tourism in order to obtain a licence for establishing an industrial unit within the Larnaca Free Zone. For more information click here.

Industrial areas
Industrial Areas have been established in an effort of accelerating industrial growth. Land can be leased through long term contracts by the government at a relatively low cost, while there is easy access to the relevant industrial infrastructure (electricity, telephone lines). A total of twelve industrial areas are currently operating in Cyprus. The application form is to be completed and submitted to the Ministry of Commerce, Industry, and Tourism (www.mcit.gov.cy).

Industrial Zones
Over 45 industrial zones operate all over Cyprus. The land of industrial zones belongs to individuals and the interested parties may come to an agreement for purchasing the land. For further information, you may contact the Town Planning and Housing Department of the Ministry of Interior or the Municipality to which the zone belongs to.

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10. What is the corporate tax rate in Cyprus?

The corporate tax rate in Cyprus is 10%, the lowest in the European Union. Moreover, various tax exemptions apply for both corporate and personal tax; such as, exemptions in respect of dividends received from local and foreign subsidiaries, profits of permanent establishments abroad, capital gains derived from the disposal of securities, outward dividends, company reorganizations, free repatriation of profits and capital, and other. For more information click here.

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