For entrepreneurs and business investors, starting a company has to be a well thought out and researched process. Legal and financial advice needs to be sought to ensure that any new venture adheres to the rules and regulations in place wherever the company is to be formed. Sometimes the location for setting up a company can make all the difference to investment opportunities and favourable tax breaks. As each industry is different, it is essential to research the geographical implications of company formation. Cyprus is one of the largest and most popular Mediterranean islands and as such has a thriving tourist industry, enabling companies that specialise in holiday letting or real estate to take advantage of willing investors.
As the global economic slump is beginning to take hold, it is understandable that business investors have become wary, but there are still many industries that are experiencing positive financial growth in company formation. Cyprus has been an attractive place for investment for a long time, and even though the area is not quite the tax haven it used to be, it still has many benefits for the foreign investor. A 10 per cent corporation tax is levied to company formations regardless of whether they are considered an off shore venture or a Cypriot company, and if the company formation is in an industry that specialises in high tech products, there is a greater chance of obtaining grants when setting up a business.
Thanks to a highly developed infrastructure, Cyprus is a prime development area. For companies that are involved in real estate, the island has great opportunities for building holiday apartments and resorts. The mix of cultural attractions, a rich heritage and Mediterranean cuisine attract many visitors to the island, including a large proportion of ex patriots. The influx of British migrants has seen an increase in the number of businesses that specialise in providing English style restaurants and bars in their company formation. Cyprus was once a British crown colony, and many Cypriots served alongside British service men and women, which adds to the popularity of the island for British foreign investors.
There are many privately owned apartments on the island and some companies choose to act as an agent for holiday rentals. The most popular parts of Cyprus for holiday makers are in the Greek Cypriot area of Cyprus. Although Cyprus is considered to be under Greek Cypriot rule by the United Nations, the European Union and most of the world, Turkey does not acknowledge the political status and there is still an element of conflict between the Greek and the Turkish Cypriots on the island. Company formations in areas such as Paphos and Larnaca in the south will attract many more investment opportunities than destinations in the north of the island.
The discovery of oil and natural gas in the sea bed off the coast of Cyprus has the potential to change the interest in investment in company formations. Cyprus is currently in talks with Egypt and Lebanon over the extraction and ownership of the resources, which could bring about some intense political discussions with Turkey too. The impact this has on the future of the tourist industry can only be speculated upon. Although Cyprus has had a tumultuous political past, there has always been a healthy influx of visitors and only time will tell if talks over an ever decreasing natural resource will affect tourism. Economically speaking though, investment in company formations in Cyprus looks set to remain steady as the economy of the island will continue to grow whether from tourism and real estate or oil production.
Author Resource:-
Dom Donaldson is a financial expert.
Find out more about Company Formation Cyprus including financial and legal advice when setting up a company, with Open A European Company today.
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