Cyprus has become an attractive location for entrepreneurs looking to launch start-ups, thanks to its business-friendly environment, strategic EU location, and competitive tax regime. Understanding the legal requirements is crucial for getting your start-up off the ground.
Key Legal Steps to Set Up a Start-up:
- Business Structure: Entrepreneurs must first choose the appropriate business structure for their start-up. The most common form in Cyprus is the Private Limited Company (Ltd), which offers limited liability protection to shareholders.
- Company Registration: To register a company, you must reserve a unique company name with the Registrar of Companies and submit the company’s Articles of Association, which outline its governance structure and operational rules.
- Tax Registration: Once registered, your start-up must be registered with the Tax Department for corporate tax, VAT, and social insurance purposes. Cyprus offers one of the lowest corporate tax rates in the EU, at 12.5%.
- Licensing and Permits: Depending on the nature of your start-up, specific licenses or permits may be required. For example, fintech companies may need authorization from the Central Bank of Cyprus.
Conclusion:
Setting up a start-up in Cyprus involves selecting the right business structure, registering with relevant authorities, and ensuring you comply with tax and licensing requirements.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
