Cyprus is a good location for foreign investments, which are encouraged in the country. EU citizens are able to start a business in Cyprus without any restrictions. If you want to set up an IT company in Cyprus, you will have to go through all the ordinary company incorporation steps. Our experts can help you with company formation in Cyprusso that your IT business will be fully operational as soon as possible.
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Cypriot company formation requirements for an IT business
There are two options under which one can open an IT company in Cyprus:
- by setting up a sole proprietorship;
- by registering a limited liability company or another business form.
There is also the possibility to buy a shelf company in Cyprus, which can replace the second variant.
The main difference between the two possibilities imply:
- the size of the business (the sole proprietorship is suited for single entrepreneurs, such as programmers, software developers, etc.);
- the taxation system the entrepreneur wants to work under;
- the incorporation process;
- the liability in terms of obligations of the IT company.
Our local specialists can help you choose an appropriate legal form starting from these premises. With respect to the available IT licenses in Cyprus, they depend on the activities to be carried out by the company.
Open a Cypriot company
Any company in Cyprus needs to be registered at the Cypriot Trade Register. After choosing the right type of company for your IT business, you will have to reserve a company name. Our Cypriot company formation experts will then help you prepare any needed company documents and submit them to the relevant authorities.
We can help you open a bank account and establish your company headquarters in Cyprus. Our experts will be able to tell you all about taxes in Cyprus and your obligations as a corporate taxpayer in Cyprus. Also, you have to remember that this type of business in Cyprus will have to be registered for VAT.
If you want to avoid going through the regular steps of starting a new firm, you can choose a shelf company in Cyprus. We can offer advice on the best choice if you want to start a business in this country. Our local company formation experts can help in the relationship with the Trade Register for the changes made to your off-the-shelf entity.
IT businesses in Cyprus
IT companies in Cyprus and related businesses have a broad range of actions and can offer various services to their clients. From software and mobile applications development to business intelligence solutions or client services and tech support, IT companies can focus on providing just one key service or offer multiple solutions.
As a business owner, you will have to focus on offering quality and comprehensive IT solutions. Our Cypriot company formation experts can help you establish a business plan, make investments and decisions that will make your company stand out on the market. We can also help you with efficient tax planning and tax minimization but before all this can take place, you will need to incorporate your company in Cyprus.
There are several ways to complete company registration in Cyprus. These are in person, by going and submitting the necessary documents with the Trade Register, and the other by filing them online. In the past few years, the latter method has proven more efficient, as it can also be completed by service providers, such as our firm.
Activities that can be completed by starting an IT company in Cyprus
The IT sector is one of the best in terms of operations, as it can fit anyone, with or without qualifications. In the latter situation, an investor can hire specialists or work with sole traders based on collaboration contracts.
Here are some of the activities one can complete by setting up a Cypriot IT company:
- programming;
- software development;
- equipment maintenance;
- outsourcing (BPO);
- fintech;
- cloud computing;
- accounting software management;
- media;
- cybersecurity.
These are some of the branches of the IT sector, and each of them can be divided into other categories. So, if you want to open a company in Cyprus, you have numerous options to choose from. The operations to be completed also dictate the IT license the enterprise will need to obtain in Cyprus.
IT legislation in Cyprus
An investor who decides to open an IT company in Cyprus must comply with various laws, depending on the sector he/she chooses. Here are some of the relevant regulations to abide by:
- the Security of Networks and Information Systems Act 89(I)/2020 covering cybersecurity activities;
- the Electronic Communications and Postal Services Act 112(I)/2004 covering the use of electronic mail and networks;
- the Consumer Protection Law 212(I)/2006 covering electronic communications and digital services;
- the Regulation of Audio-visual Media Services Law 187(I)/2000;
- fintech regulations must also be respected by IT companies operating in this field.
Should you decide to open a Cypriot company in the IT sector, you may also need to obtain specific business licenses depending on the activities to complete.
Projections for the computing market in Cyprus
Computing is one of the most prolific branches of the Cypriot IT industry, as the numbers below indicate that:
- by the end of the year, the sector is expected to generate USD 54 million in revenue;
- by this time of the year, each person contributed USD 43.39 to the revenue of cloud computing services;
- by 2029, the same branch is projected to register a 0.10% increase per year.
Please do not hesitate to contact our company formation consultants in Cyprus if you need help or advice for setting up an IT business in Cyprus. Our agents will help you along the way and will help you invest in Cyprus.