How to Start a Business in Cyprus as an Expatriate

If you are interested in moving overseas to start a business in Cyprus you will not be alone. Each year many expatriates move abroad and open up new business in Cyprus. Typically the businesses that are established in Cyprus by foreigners tend to fall into the leisure and catering industries and then the property investment and development industries. Some common businesses started by foreign workers are bread and breakfasts, catering companies, bars, cafes, restaurants, shops, property and relocation agencies, translation service companies, language school and sports centers.

If you are seriously considering starting a business in Cyprus it will take careful planning and research to insure that you are successful in your endeavor. It would be in your best interest to select a local lawyer that is familiar with this sort of thing who can help navigate you through the process and advise you on the current business climate. You will need to decide on a business infrastructure, get your self a bank account and an accountant as well. Your lawyer should also help you with your business plan and a financial report of projected earnings that you can present to a financial institution if you need to borrow money to finance your venture. The lawyer can assist you in applying for a name for your company and can complete your paperwork for incorporation. Remember that the lawyer will charge a fee for all of this, but it will likely be worth it to ensure that you are on the right side of the law as the penalties can be high.

You can also tap other resources for information and advice on starting a business in Cyprus. The Central Bank of Cyprus can provide information on markets that they deem fully saturated, which means that under no circumstances will they lend you money to start a business in one of these markets as they deem the market to be overcrowded. The Cyprus Chamber of Commerce and the Employers' and Industrialists' Federation are also great places to get business information from in Cyprus.

If you do not want to start a business from the ground up you can also buy a business in Cyprus that is already established. This provides less risk and less paperwork that has to be completed. Before buying a business you should get a valuation and have an accountant audit the books for the business. It will be considerably easier to borrow money to finance the purchase of an already existing profitable business as opposed to starting a new business.

Note that banks in Cyprus are very conservative and leery of lending money to foreigners to run new businesses. For this reason, you may want to consider borrowing the money elsewhere if you need to borrow money to finance your business.