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Yes, citizens (Physical or legal persons) of EU member states can establish their own business in Cyprus with the following relaxations:
Business ownership 100% is now acceptable ( No need to have local partner )
There is no minimum investment requirement. Therefore any amount invested to set up the business would be acceptable.
Exemption to the above relaxations
Business relating to stock brokers, financial advice and financial services will be subject to separate more strict criteria.
Business relating to acquisition and development of land require additional procedures.
General Rules
Certain professions or business require operating permission from the government or the regulating professional bodies. It is therefore important to identify if any kind of permission is required so that steps can be taken to obtain the necessary approval. For example:
Doctors: Must register and obtain permission from the Ministry of Health
Tourist related business: May need prior permission from Cyprus Tourist Organisation
Building Contactors: Need to register with the local registry of approved building contractors
There are off course many businesses which do not need any prior approval. Each case should be examined independently.
A company is established as local company in which the E.U. You become a shareholder and then obtain a work and residence permit to work exclusively for the newly established company. You become company employee (director) and liable for local Income tax depending on the level of your salary. You also contribute to the local social security fund.
The company is liable to V.A.T, registration if its turnover exceeds the registration limit which at present is CY£9,000 per annum.
What Company tax is payable?
Corporation tax is only 10%. Many companies are set up with a head office in Cyprus to trade throughout Europe because of the low tax.
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