Being a member of the European Union (EU) and the Eurozone and strategically located in the Eastern Mediterranean, at the crossroads of Europe, Asia and Africa, Cyprus offers market access to the EU and unique investment opportunities.
Over the past years, Cyprus has become an international business and financial center, with a plethora of foreign investors, including investors from India, choosing to do business in and through Cyprus.
Setting up a Company
The most widely used option for Indian investors doing business in Cyprus is that of establishing a private limited liability company. A limited liability company must have a name, an address in Cyprus, at least one director, a secretary and at least one shareholder. For investors looking to raise funds from the public, there is also the option of establishing a public company or an Alternative Investment Fund.
It is worth noting that the Cyprus Company Law – Cap. 113, is based on the English Companies Act of 1948 and that Cyprus’ legal system is based both on the English Common law and on EU law and regulations.
Investors also have the option to transfer the seat of a company which is registered under the laws of a foreign jurisdiction to Cyprus, or even establish a branch of a foreign entity in Cyprus.
Tax Benefits
Cyprus offers a business-friendly tax system with a corporate tax rate of 12.5%, one the lowest rates in the EU and Double Taxation Agreements with over 60 countries, including India.
Entities selling goods or providing services in Cyprus or importing goods from non-EU countries will need to consider potential V.A.T. implications. Companies selling goods or services within the EU will need to also consider the EU’s VIES and reverse-charge rules.
Relocation to Cyprus
Non-EU nationals wishing to work in a Cyprus company will need to obtain a work permit.
The Cyprus Government has recently introduced a fast-track scheme for the relocation of high-skilled employees to Cyprus. In particular, faster, simplified, procedures and conditions for granting work permits to high-skilled employees and residence permits to their families, were introduced.
There are several other residency permit options available to investors, such as the fast-track permanent residency scheme, which is available to those who invest at least €300,000 + VAT in real estate in Cyprus or in the share capital of a Cyprus company with business activities and personnel in Cyprus.
Other Advantages
India and Cyprus have developed over the years strong diplomatic and economic ties. The relationship between the two countries combined with the high quality of life, the family friendly environment, the pleasant climate and the convenient geographical location of Cyprus, has made the country one of the most popular destinations for Indian nationals seeking opportunities in the EU.
The English language is widely used in the business world and in services such as banking and tourism, making it easier for people coming from abroad to settle down in the country.
Article written by
Marilia Paraschou
Athina Stavrinidou
Law Firm:
M. Paraschou & Co LLC
42-44 Griva Digeni, 3rd Floor, Office 302, 1080, Nicosia, Cyprus
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