Starting a business in Cyprus: step by step

The usual choices are working as a self-employed sole trader, a partnership, or a private limited company (Ltd). A sole trader is the business and is personally liable for its debts; a limited company is a separate legal person, with its own tax return and accounts. An accountant can tell you which suits your plans, your income and the tax you will pay.

A company or a partnership is registered with the Registrar of Companies. First check the register for companies with the same or a similar name, and apply for approval of the name you want. Then the founding documents are filed; for a company they are prepared by a lawyer.

A sole trader does not register with the Registrar, but registers for tax and social insurance (the next steps).

Both a company and a sole trader need a Tax Identification Code (TIC), registered online on the Tax Department's "Tax For All" portal.

A business registers for VAT once its taxable turnover reaches the registration threshold, and can register voluntarily before that; some activities, such as services to businesses in other EU countries, have their own rules. Ask your accountant or the Tax Department which applies to you.

A self-employed person registers with Social Insurance Services and pays contributions. A business that hires staff registers as an employer, and declares each new employee through the ERGANI system before their first day of work.

Many activities need a licence or permit before they open: shops and offices from the municipality, food businesses from the health services, and regulated professions from their own body. A sign outside may need a permit too. The Point of Single Contact lists the licences for each kind of business.

Open a business bank account and keep proper books from the first day. Every year the business files its tax return, and a company also files an annual return with the Registrar and has its accounts prepared and audited. An accountant usually takes care of these.

A website, a sign and your listing on Cyprus Atlas, free, are where most customers will find you first.