For many small business owners the idea of expatriating in a year long sunny island, just a few hours away by plane from the place you now call home, is immensely appealing: less punitive tax regimes, warmer climates and an improved quality of life being some of the more obvious attractions. But as alluring as the idea is, there a range of commonly held misconceptions that tend to put a lot of people off making their dream come true, such as (for example) expatriating and setting up a small business overseas is complicated; it's an option only for larger businesses and it's expensive and are just some of the perceived "problems".

So just how difficult it is for small business owners— or indeed a one-man-band — to start trading in the beautiful Mediterranean island of Cyprus? The answer is, it's not! Cyprus is open to businesses from all over the world and does as much as possible to keep the "red tape" to the absolute minimum. (NB Rather than doing it yourself, the quickest and most cost-effective option for the self-employed individual or for someone who wants to move an existing entity to Cyprus, is to seek specialist assistance and advice — more details can be found later in this article.)

So if the idea of moving and doing business in Cyprus, a small island with gorgeous beaches, year long sun and fantastic Mediterranean climate, appeals, here are some basic and hopefully illuminating facts for you to consider…

Expatriating in Cyprus - Permits and visas

EU/EEA citizens can work or become self-employed in Cyprus without a work permit. For stays exceeding three months, residence conditions apply, and an application for a registration certificate must generally be submitted within four months of arrival. Non-EU citizens must follow the entry, residence and work authorisation requirements applicable to their circumstances. We can help you identify the appropriate route before you relocate.

Getting started in Cyprus – Forming your own business

Setting up your business

Cyprus welcomes entrepreneurs and new businesses from abroad. Foreign investors can generally establish a company through the same incorporation process as local investors, subject to applicable registration, due diligence and licensing requirements.

Ownership and share capital

An ordinary private limited company does not generally require a local Cypriot partner. There is no statutory minimum share capital for this type of company; €1,000 is a customary amount. Regulated activities may have specific ownership or capital requirements.

Buying an existing business

You may also consider buying an established business in Cyprus. This offers an alternative to starting from scratch, subject to appropriate legal and financial due diligence.

Exploring opportunities before setting up

EU citizens can explore business opportunities in Cyprus before establishing their own business. Any subsequent employment or self-employment must comply with the applicable registration, residence and professional requirements.

Business structures available in Cyprus

• Private and public company;
• Partnership (general and limited);
• European Company (SE);
• A registered branch of an overseas company

The first and probably most important step…

If you have the time and the inclination you can of course adopt a do-it-yourself approach to setting up when expatriating in Cyprus. But for small business owners and the self employed a more sensible strategy is to call on the services of specialist local advisers.

Delegating the task to people who know the country and the rules and regulations provides a number of advantages:

• Save time with local expertise and support throughout the process.
• Arrange company formation remotely where possible.
• Get guidance on the legal and regulatory requirements relevant to your business.

Registering your business, registering your presence

For a new Cyprus company, the first step is to obtain approval for its proposed name from the Registrar of Companies. Once approved, the incorporation documents, including the Memorandum and Articles of Association prepared by a Cyprus lawyer, are submitted with the required information and supporting documents.

Our team can coordinate the application and supporting documents, helping you move through the company registration process efficiently. Completion depends on the required checks, document preparation and the Registrar’s processing times.

Our team can coordinate the application and supporting documents, helping you move through the registration process efficiently. Completion depends on the required checks, document preparation and the Registrar’s processing times.

Banking arrangements

Opening a company bank account is an important step in establishing your business. Meridian Trust can help you prepare the application and supporting documents, while the bank assesses each application under its own requirements.

Documents typically requested include:

• The company’s certificate of incorporation.
• The Memorandum and Articles of Association.
• Details of the registered office, directors, shareholders and beneficial owners.
• Identification and proof of residential address for the relevant individuals.
• Information about the business activities, source of funds and expected transactions.

Additional documents may be requested. Account opening is subject to the bank’s approval and completion of its due diligence checks.

Start your business in Cyprus with local support

Cyprus offers an attractive base for small businesses and independent professionals. With the right local guidance, you can plan your Cyprus company formation, residence arrangements and banking application around your business needs.

Meridian Trust can coordinate the process and help you understand the requirements relevant to your circumstances. Contact our team to discuss your plans and take the next step towards establishing your business in Cyprus.

Start registering your Cyprus company