Top Five Reasons To Start A Business In Cyprus
January 22, 2013 News
If you are in the process of starting a new company and you are trying to find the ideal country to register your business, Cyprus may be the place for you. Why? Here are the top 5 reasons why Cyprus can be a lucrative choice:
1. Cyprus is a member of the European Union and the Eurozone. This provides Cyprus with a series of advantages. First of all, the country has one of the three stronger currencies in the word, the Euro, which is a global trading currency.
This means reduced exchange rate risks, as well as price transparency (a single currency allows you to compare prices and make faster and better decisions regarding your costs). Moreover, EU membership means less transaction costs, as there are no restrictions to trade between the Member States. Last but not least, Cyprus is subject to EU law.
This is a very important benefit and should not be overlooked. A company based in Cyprus will be protected by EU Competition law, EU Law regarding the administration of your company, EU Regulations on Intellectual Property, data protection, and Health and Safety, etc. The aforementioned advantages will also allow your company easier access to cheaper capital in times of need.
2.Cyprus has a robust and efficient legal system which is similar to the English Law. As mentioned above, Cyprus’ EU membership means that you will be faced with a coherent set of Company Law, Rules and Regulations that will facilitate your business operations across national borders.
In addition, Cyprus’ legal system also applies English Common Law principles and is therefore very similar to the English Law, which is widely used in Finance. This is very important in boosting investors’ confidence.
3. Cyprus has the lowest corporation tax rate in the EU (10%) at this moment. This means that you maximize you maximize the after tax profits, giving you the opportunity to distribute more dividends, reinvest your profits and grow your business faster or attract funds from investors. In addition, Cyprus, being part of the EU, has tax treaties with more than 40 countries ensuring that your corporation income is not taxed twice.
4. Cyprus has Massive Oil and Gas Reserves that guarantee a full of growth and economic prosperity future for businesses that operate or doing business in Cyprus. The oil and gas reserves that exist in Mediterranean sea will boost the economic activity in the area, attracting investment and help the businesses that operate in the area flourish.
5. Cyprus hosts leading financial institutions and professional services firms. Therefore, there is no doubt that finding and working with professionals that can open new doors for your business will be as easy as it is in your home country. Cypriots are traditionally open minded, hard working and hospitable and recruiting experienced and skilled staff can become almost effortless.
Cyprus is one of the most attractive places for businesses at this moment. The low tax rate, the increasing economic activity and the recent discovery of the oil and gas reserves make it an ideal place for start-up companies.
- License: Creative Commons image source
Author Bio: Mike Richards is an accountant and owner of FinancialMemos.com where he spends his evenings writing about anything that relates to accounting and finance.
Article SponsorVN:F [1.9.22_1171]Top Five Reasons To Start A Business In Cyprus,