FORMING AN ENTERPRISE
In order to enhance foreign investment intensity, the FDI (Foreign Direct Investment) policy has been liberalised for both EU and non-EU nationals. Subsequently, administrative procedures have been simplified and no limitations apply in most sectors of the economy, as per the minimum level of investment and the foreigners/participation percentage.
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. Investors may address to the Investors Service Centre of the Ministry of Commerce, Industry, and Tourism for further guidance and direction on a case by case basis.
Furthermore, Cyprus offers one of the lowest set up and operating costs within the EU.
MAIN TYPES OF ENTERPRISES IN CYPRUS
Most investors choose one of the following Cyprus enterprise formats:
- limited company
- Cyprus branch
The main features of a limited company:
- no minimum share capital requirement
- number of shareholders must be between one and fifty
- company must have at least one director
- annual accounts must be filed in Greek and audited
The main features of a branch:
- foreign parent responsible for all liabilities of Cypriot branch
- branch required to register with Registrar of Companies
- accounts to be filed annually, in Greek
The main features of a limited liability partnership:
- general partnership: between two and twenty members
- limited partnership: at least one partner with unlimited liability
- required to register with Registrar of Companies
- no requirement for audited accounts, but must keep proper books