Cyprus

Operating a Business in Cyprus

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Private Limited Company No minimum capital	Minimum 1 shareholder and Maximum 50 shareholders The responsibility of the associate member is limited to the amount contributed to the total capital.	Minimum EUR 215.
General Partnership No minimum capital	Minimum 2 and maximum 20 associate members. Each associate member is personally and indefinitely responsible for the debts and obligations of the company	Around EUR 1,280.
Limited Partnership No minimum capital	Minimum 2 and maximum 20 associate members. At least one of the associate members is personally and indefinitely responsible for the debts and obligations of the company, the other members' responsibility being limited in nature	Around EUR 1,280.

Business setup procedures: The registration procedure of a company in Cyprus has been facilitated.
Several steps have to be completed:
-application to be filled in for the approval of the name of the company.
-relevant documents (memorandum and articles of association, list of directors and secretary's names, a declaration or affidavit from a lawyer stating that all formalities have been complied) should be submitted for the registration itself (with an accelerated procedure, it can take 2 to 3 days).
-if the person who sets up the company is a foreigner (non-EU citizen), a work/residence permit should be obtained.
The competent organization: The competent organization is the Registrar of Companies.

Legal weekly duration: Working hours vary according to sector and profession. The maximum number of working hours is fixed by collective agreement. It usually ranges beetween 38 and 40 hours.
Retirement age: 63 or 65 if the insured person does not meet the conditions to go on retirement at the age of 63.
Working contracts: A written contract is not obligatory but it is now common to have one.
There are several types of contracts and Cyprus does not have a uniform contract of employment system.
The most common contract is the contract with an indefinite term. Temporary employment is uncommon though seasonal work exists mainly in tourism and agriculture.

Minimum wage: The minimum wage is 700 Euros.
Average wage: The average wage ranges between EUR 1,000 and 1,100.
Social contributions: Social security contributions paid by employers: Employer contribution is 6.3% and 4% for the State.
Social security contributions paid by employees: Employees are required to make social insurance contributions at a rate of 6.3%.

Social dialogue and involvement of social partners: Employees are protected from dismissal because of union membership.
Collective bargaining power is ensured and allowed (article 26 of the Constitution) and numerous trade unions exist.
Unions: Cyprus Workers' Federation
Pan-Cyprian Federation of Labour
Democratic Labour Federation of Cyprus
Unionization rate: The unionization rate is quite high in Cyprus, reaching 68%.
Labor regulation bodies: Ministry of Labour and Social Insurance
Human Resource Development Authority