A combination of a number of favourable factors has made Cyprus one of the most attractive places for businessmen across the globe for the registration of companies.
Situated at the meeting point of Europe, Africa and Asia, close to the trade routes linking these continents, Cyprus is located in a strategic position, which has contributed decisively to its development into an international business center.
The island’s infrastructure, coherent legal system based on English Law, high standard of professional and other support services, combined with the low cost of living, security of investment, generous tax incentives and other facilities create an ideal business environment, as evidenced by the substantial growth in numbers of International Business Companies (IBCs) registered in Cyprus.
IBCs in Cyprus are legally secured within the framework of a well defined regulatory system governing their operations. Ownership and possession, as well as related rights (freedom of contract, practicing any profession and carrying on any trade or business etc) are safeguarded by the Constitution of Cyprus and by international treaties ratified by Cyprus and forming part of its Laws.
The Constitution of Cyprus and other relevant laws guarantee these fundamental rights without any discrimination between Cypriot citizens and foreigners. The legal security of a Cyprus IBC also comprises the entitlement to protection by the State and support by the Government and other State organs on an international level.
Cyprus and the European Union
Cyprus has become a full member of the European Union as from 1 May 2004 and has joined the Economic and Monetary Union as from 1 January 2008. Both memberships have proven the success of Cyprus’ economy but at the same time, have opened new doors for further boosting of the economy in an environment where macroeconomic stability prevails. Cyprus has entered a new economic era which has led to the country becoming one of the most successful international financial center within the European Union.
Cyprus has an open free market and its economy is driven by the service, the tourism sectors and the shipping industry. It enjoys relatively low inflation and unemployment rates in contrast to the high GNP growth rate and income per head.
As of 1st of January 2008, the official currency of Cyprus is the Euro (€) and Cyprus has become a member of the European Economic Union and free trade zone.
Cyprus has a fully operative stock exchange. The Cyprus Stock Exchange (CSE) is a legal entity in the form of a public corporate body. The Stock Exchange regulations were adopted in 1995 and the CSE commenced operations officially on 29 March 1996. The CSE operates in accordance with the adopted EC Directives and Cyprus legal framework. The process of acquiring shares by foreigners is simple enough and is more or less similar to that applicable to locals. Payment for any transaction by foreign and Cypriot emigrants alike should be made through external accounts.