Start Your Business in Larnaca, Cyprus: 9 Essential Steps to Start Your Success

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest

You may have heard about business owners starting businesses in Larnaca, Cyprus. There are no surprises if you also want to start your business in Larnaca, Cyprus since there are many benefits of running an operation on this sunny island. The incorporation procedures are also straightforward and relatively inexpensive.

In this article, we will go through the benefits of starting your business in Larnaca, Cyprus, and inform you of the steps to incorporate your business.

Start Your Business in Larnaca

Benefits: Why You Should Start Your Business in Larnaca, Cyprus

There are numerous benefits of starting your business in Larnaca, Cyprus. In this section, we will briefly go through the most important ones:

  • Lowest Corporate Income Taxations (12.5%) in the E.U.: One of the most important reasons many businesses get started in Larnaca, Cyprus, is the low corporate taxes. The corporate tax rate in Cyprus is 12.5%. This is one of the lowest corporate tax rates in the European Union, fully compliant with E.U. and OECD regulations.
  • Attractive Tax Exemptions: Certain income is exempt from income tax in Cyprus. This includes, but is not limited to:
    • Dividend income
    • Disposal of shares, bonds, and other financial instruments profits
    • Foreign exchange (F.X.) gains (Do not apply to trading in F.X.)
    • Overseas Permanent Establishments (P.E.s) profits
    • Absence of withholding tax and succession taxes
  • Low Business Operational Costs (without Lowering the Quality): Compared to other Cypriot cities such as Nicosia and Limassol, Larnaca has a lower cost of running your business and living. Compared to other E.U. cities, you can start your business in Larnaca, Cyprus, and run a high-quality business with 30-40% less cost of running your business and living expenses.
  • English is Widely Spoken in Larnaca: Southern Cyprus’ official language is Greek, while English is taught in schools. In Larnaca, Cyprus, almost everyone speaks English. Since there are no language barriers among your staff and processes, this may be helpful to your organization.
  • Cyprus is an E.U. State: Cyprus is a member of the European Union, and its currency is the Euro. The single market and customs union are both open to the island. Larnaca, Cyprus, being a member of the European Union, enjoys the same rights as any other country on the continent.
  • Strategic Location: Larnaca, Cyprus, lies in Europe, the Middle East-Asia, and Africa in the eastern Mediterranean. The topography of this island provides it an excellent strategic position to start your business in Larnaca, Cyprus, with three continents.
  • Talented Workforce: The competent staff that Larnaca, Cyprus may provide for your company is the final benefit that we can discuss. Larnaca’s general populace is well-educated and has received training at local or foreign universities worldwide.

Also read: Cyprus Tax Facts 2021 by Deloitte

9 Steps to Start Your Business in Larnaca, Cyprus

The process of forming a corporation in Larnaca, Cyprus, is simple. It may take up to 2 weeks to start your business in Larnaca, Cyprus. Furthermore, you are not required to visit the island physically. The method for incorporation is outlined below:

1. Research and Planning

Before getting into the procedure of starting your business in Larnaca, Cyprus, you need proper planning of the nature of your business and the corporate structure of how you will be running your business.

As part of your research and planning stage, you need to develop your business name and design your shareholding table and the board of directors. This step is vital since you will be planning the pillars of your business.

2. Reserving a Business Name

Before getting into the procedure of registering your company, you need to reserve your business name with the Department of Registrar of Companies and Official Receiver (DR-COR). This may take 2-3 weeks, and once the name is reserved, you are entitled to use the name within the next six months.

Also visit the Department of Registrar of Companies and Official Receiver (DR-COR) website

3. Finding Your Office Space

As part of your company registration and bank account registration documents, you are required to show a physical address of your business in Cyprus. To do so, you will be needed to find an office space to start your business in Larnaca, Cyprus. At Sunshadow Investment, we can help you with finding this space. You can consult with us through a 20-minute online meeting with our operators.

4. Document Preparation

To submit your business for approval, you are required to prepare the following documents:

  • Memorandum and Articles of Association
    • Names and addresses of the shareholders
    • The number of shares issued
    • Amount of the share capital
    • Shareholders’ voting rights
    • Company regulations for daily operations
    • List of the members within the board of directors
    • Details about shareholders’ and directors’ rights, duties, and responsibilities
    • Date and minutes of the first shareholders’ meeting
  • Shareholders’ personal and legal documents
  • Shareholders’ bank details

5. Document Submission to Start Your Business in Larnaca, Cyprus

Upon submission of your document, you are required to:

  • Submitting the completed and signed the submission forms
  • Submitting the certified due diligence documents
  • Submitting an affidavit signed by a Cypriot lawyer

6. Company Registration Approval

Once the Department approves your company and document of Registrar of Companies and Official Receiver (DR-COR), your company is registered, and you will receive the following documents:

  • Approved Memorandum and Articles of Association
  • Certificate of directors and secretary
  • Certificate of Shareholders
  • Certificate of Registered office
  • Certificate of Incorporation

7. Opening Up a Business Bank Account

With the documents and the certificates of incorporation, you can now open up a bank account for your business with a bank of your choosing. The standard documents required to open a business bank account in Cyprus are:

  • All documents and certificates received from the Department of Registrar of Companies and Official Receiver (DR-COR)
  • Proof of the registered office
  • An application form issued by the bank
  • Information & other documents regarding the source of funds

All documents must be in English or, if in another language, to be officially translated.

8. V.A.T. and Tax Registration

Suppose your projected annual sales are equal to or greater than 15,600 Euro. In that case, it is critical to get your company’s tax identification number (TIN), which is required, as well as V.A.T. registration. Companies with trade operations within the E.U. can get EORI numbers based on their V.A.T. numbers, making trading processes easier.

9. Employer Registration

Suppose you are planning to hire employees for your business in Larnaca, Cyprus. In that case, you will need to register your company with the Ministry of Labor, Welfare, and Social Insurance as an employer and receive a unique id number as an employer.

Staff can be found through a variety of employment agencies. In addition, the Cyprus Human Resource Management Association and the Cyprus Chamber of Commerce and Industry (KEBE) may give information on staff hiring.

Digital Nomad Visa for Non-EU Nationals

Cyprus has announced its new Digital Nomad Visa Program, which will begin in January 2022, as part of the latest news in 2021. Applicants who are working, self-employed, or freelancers can get one-year licenses with the possibility of renewing for another two years.

Holders of the Digital Nomad Visa must have a monthly income of at least €3,500, medical insurance, and a clean criminal record.

The work agreement or other necessary documents, as well as a bank account, should be used to show the income of digital nomads in Cyprus. In the event that you have family members.
If there is a spouse/civil partner, the income is raised by 20%, and by 15% for each kid.

Related: Digital Nomads in Cyprus: 8 Essential Reasons to Pick Cyprus in 2022

Conclusion

As mentioned at the beginning of this article, if you plan to start your business in Larnaca, Cyprus, you are making an excellent choice. The benefits and the straightforward procedure of starting a business in Cyprus are there for you to take advantage of.

If you have any questions regarding starting your business/investment in Larnaca, do not hesitate to contact us at mailto:minfo@sunshadowinvest.com, call us at +357 24 816246, or Book a 20-Minutes Online Meeting.

 

Related: Benefits of Relocating Your Business to Larnaca, Cyprus

WANT TO INVEST in Cyprus Real Estate?
Cyprus-Investment-20

We have made partnerships with foreign and local real estate investors like you. Join us and invest in the highest ROI project developments in Cyprus.

Download the PDF Guide Now: