# Setting up a business in Cyprus



## julie evanson

How easy is was it too set up a salon in Paphos, we are considering a move over, a little concerned as have a thriving business here, but desperate for a big change, have bought in Peyia all ready, but as a holiday home and love it more and more, would appreciate any help at all.


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## BabsM

I have moved this post to a new thread as I think it deserves a thread of its own.

Good luck 
Babs


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## julie evanson

How do i receive messages and a new thread, sorry but am new to this and not at all sure what to do,


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## Veronica

julie evanson said:


> How do i receive messages and a new thread, sorry but am new to this and not at all sure what to do,


Hi Julie, welcome to the forum.
To start a new thread just go to the home page of the Cyprus forum and click on Post new thread.
As a new user you cannot receive or send private messages until you have made 5 good postings. 

Regards Veronica


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## BabsM

*A new thread*

Hi Julie, 
Don't worry, I have already moved your message to start a new thread. If you look at the list of subjects, yours is now at the top of the list.

Hopefully, people who have started or looked into how to start a new business in Cyprus will post replies for you

Regards
Babs


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## daisydaisy

*new business*

Setting up a business is not as easy as it appears.
There are rules and costs involved, around 1100 euros to register, and then if you are thinking of employing people, you have to remember that emp contributions are not only 6.3% but also 8% holiday fees and a contribution to other aspects. in effect it runs to around 18% as far as i have been able to check
There are several sites on social insurance in Cyprus and minimum wages
When registering a Company / Business, you may not get the name you want so think about this before you go ahead with the Business.
I know a very good UK accountant who also does the legwork for Business registration if you need assistance in this.

good luck

Daisy


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## daisydaisy

*new business*

Please Veronica,
I would be grateful for the name of the solicitor you used,
Was the cost comparative with what i had been given?
Daisy


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## aysan

daisydaisy said:


> Setting up a business is not as easy as it appears.
> There are rules and costs involved, around 1100 euros to register, and then if you are thinking of employing people, you have to remember that emp contributions are not only 6.3% but also 8% holiday fees and a contribution to other aspects. in effect it runs to around 18% as far as i have been able to check
> There are several sites on social insurance in Cyprus and minimum wages
> When registering a Company / Business, you may not get the name you want so think about this before you go ahead with the Business.
> I know a very good UK accountant who also does the legwork for Business registration if you need assistance in this.
> 
> good luck
> 
> Daisy


Hello Daisy , I will appreciate if you let me know this assistence name and email ?

By the way which Cyprus are you talking about , North or south ?

Because I am interested in South cyprus ?

let me know as soon as you can please ?

sincerley Mahmood


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## The Reillys

julie evanson said:


> How easy is was it too set up a salon in Paphos, we are considering a move over, a little concerned as have a thriving business here, but desperate for a big change, have bought in Peyia all ready, but as a holiday home and love it more and more, would appreciate any help at all.


Hi Julie
We live in Peyia permanently and as far as I know, there is only one hairdressers here, if that is the type of salon you wish to open. You may like to consider doing a bit of mobile hairdressing as Peyia is full of Brits. It is hard to get going with any business anyway, so make sure you don't move here on a shoestring. You must have patience and tenacity by the bucketload, but it can be done. good luck


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## shalford

*Cyprus is in recession*



julie evanson said:


> How easy is was it too set up a salon in Paphos, we are considering a move over, a little concerned as have a thriving business here, but desperate for a big change, have bought in Peyia all ready, but as a holiday home and love it more and more, would appreciate any help at all.


Hi Julie,

since 2004 when Cyprus adopted the Euro the cost of living has gone up and up and as a result the tourists, in their thousands, are staying away. At this time everybody here is suffering. The building industry is come to stop and many people are without work. English people are leaving because it is so bad.


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## Stravinsky

shalford said:


> Hi Julie,
> 
> since 2004 when Cyprus adopted the Euro the cost of living has gone up and up and as a result the tourists, in their thousands, are staying away. At this time everybody here is suffering. The building industry is come to stop and many people are without work. English people are leaving because it is so bad.


Wow Shalford that _does_ sound just like Spain at the moment! Terrible times


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## manchesteralex

*info*



julie evanson said:


> How easy is was it too set up a salon in Paphos, we are considering a move over, a little concerned as have a thriving business here, but desperate for a big change, have bought in Peyia all ready, but as a holiday home and love it more and more, would appreciate any help at all.


hi
i have lived in cyprus for 9 months and recently come back to uk
its a lovely place but very quite for business as in the winter months its dead!!!!
but saying that business is very easy to start just have to set up a business which will set u back around 800 cyprus pounds or what ever the amount in euros now.
good luck 
if you want more info get in touch if i can help i will
alex


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## Veronica

manchesteralex said:


> hi
> i have lived in cyprus for 9 months and recently come back to uk
> its a lovely place but very quite for business as in the winter months its dead!!!!
> but saying that business is very easy to start just have to set up a business which will set u back around 800 cyprus pounds or what ever the amount in euros now.
> good luck
> if you want more info get in touch if i can help i will
> alex


It depends whereabouts in cyprus you were whether it dies in the winter.
There is a large expat community in the Paphos area so most buisness do ok all year round.
The East Coast is more Holiday oriented so does get much quieter in the winter months although it is slowly attracting more people for full time living so certain areas on the East coast are less dead in the winter than they used to be.
Veronica


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## izzy777

*hey julie*



julie evanson said:


> How easy is was it too set up a salon in Paphos, we are considering a move over, a little concerned as have a thriving business here, but desperate for a big change, have bought in Peyia all ready, but as a holiday home and love it more and more, would appreciate a n
> 
> Hello Julie.. im near u in st albans and i want to know more...do u have a n email address, i dont like writing on here...Emma x


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## SALOPMAN

I would like to set up a business one day in Cyprus too,photos to canvas would be good


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## lyso

*Registration of business*

You do not have to register as a business
until you have exceeded vat threshold
The only difference is 
registered 10% tax
unregistered 40%
trade for a while 
and register only when you have to

Regards

Lyso


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## Guest

Dear All

the costs of a new Cyprus company is 1350 euros inc VAT. however, you don't need to have a company in order to start a business. both a sole trader/partnership and a company need to keep proper accounts and so will probably incur accountacy fees. However, a company will also have to have annual audit which are an additional (nor insignificant) cost 

in my opinion; unless there's good reason start as a sole trader/partnership and spend the capital on your business . when it makes sense - then start a company

Regards

catherine


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## Guest

Notwithstanding specific circumstances of individuals and business activity, here are some points about business in Cyprus; 

Limited Company v Sole Trader

It is not necessary to form a Cyprus Company in order to conduct business in Cyprus. 
It is possible to can start, own or operate a business as an individual (sole trader) or a partnership. 
The cost of forming a Cyprus Company is €1,200. 
A Company can limit liability and provide tax advantages. 
A Cyprus Company needs to be audited annually at additional cost. 
It is a legal requirement that all businesses keep proper accounts. 


Social Insurance Fund (S.I.)

Social Insurance contributions are due on salaries 
If no salary is paid then no S.I. contributions are due 
Standard S.I. payments include contributions to the following funds: 
Social Insurance Fund (Half payable by employer, half payable by employee. Note: Many employers pay 100%) 
Central Holiday Fund 
Redundancy Fund 
Human Resource Development Fund 
Social Cohesion Fund 
Total S.I. contributions are roughly equal to 19% of basic salary 
S.I. is due monthly and can be paid via direct debit 


Value Added Tax VAT

It is not necessary to register for VAT unless turnover exceeds €15,600. 
The standard rate of VAT is 15% 
If a VAT registered business purchases goods/services from an EU supplier outside Cyprus that is registered for VAT, VAT will not be added


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## icedgem32

hi julie i have just bought a book on amerzon about starting up a your own shop in cyprus as thats what me and my husband are going to be doing ! it tells you every thing you need to no ! faye


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## Miles and Sue

Faye

What was the book called

Thanks

Miles


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## icedgem32

Miles and Sue said:


> Faye
> 
> What was the book called
> 
> Thanks
> 
> Miles


hi its called buying a property in cyprus i have just read it ! it has every thing in it its a really good read and very usefull as it has loads of web site adresses its your little bible of cyprus property !Buying a Property: Cyprus (Paperback)
by Paul Hellander (Author), John Howell (Author)


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## Guest

Hi so sorry it didnt work out for you here. It pays to do a lot of homework and sometimes this means years of research. The mentality is different here thats true, and trying as some have to work against the natural flow here has meant failure. I dont agree that being Cypriot necessarily goes against setting up business, it depends on which business you are entering into. Cyprus truly is a wonderful place to live and if you can succeed in business as well its a perfect place to stay. Good luck with everything and hope your health improves.


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## Cleo Shahateet

As far as cost, I can't tell you my experience since my father-in-law is a lawyer and he set everything up and paid for it. But, my advice is to make sure you have a good cash reserve in case things don't go as smoothly and rapidly as you expect. In my case, the 2 week period it was supposed to take to get a company name and register a Limited Liability Company took over 4 months even with my father-in-law's 20 years of law practice and he is Cypriot! That was surprising to me. The paperwork had apparently been lost and that was discovered after 2 months of waiting then it still took another 2 months. 

If you have a good business plan, a good product or service, patience to get the paperwork and research done to start a business it is worth it, especially in a place like Paphos because the potential in enormous.


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