Start up formations, are taking shape every day. They are the kind of companies that innovate, transform economies, create jobs and bring new technologies to the world.
They are the kind of companies, that are driving a country’s economic growth and wealth. Governments have come to realise this and in today’s world, we see them competing with one another as to the benefits and incentives they will provide to start ups, in an effort to make their country a start up and technology hub.
Challenges of setting up a start-up company in a foreign jurisdiction
It’s not easy to pack your bags, catch a plane, and start a business in a country different to your own.
Challenges tend to arise at every turn, as your business’s new home has its own economic, cultural, political, and social idiosyncrasies that must be digested and ultimately embraced before even getting a whiff of success for your start-up.
Some of the key challenges to consider when setting up a start-up in a new jurisdiction are:
- Tax benefits and incentives available to one’s start up company
- Availability of qualified candidates for making the right hires, within the local community
- Tax benefits and incentives available not only to the start up’s management but also to employees, making the decision to relocate an attractive option to everyone involved.
- Plenty of paperwork to fill out and bureaucratic obstacles to navigate.
- The urgent need for in-depth market research and analysis of the local economy to determine whether your start-up has a chance at success. This includes picking up everything there is to know about your competitors.
- Potential language barriers, as not everyone might be fluent in English.
- Access to solid and reliable infrastructure such as office space, telecommunications services, electricity, and others.
- Understanding your new home’s culture and way of doing business.
- Knowing the ins and outs of all relevant national, regional, and municipal regulations such as your tax and other legal obligations.
- Finding responsible, trustworthy, and efficient partners and employees to help you traverse unique situations and the country’s regulatory framework.
- Designing a marketing and advertising plan that speaks to the local population.
That’s a heavy load to carry, no?
Why Cyprus is an ideal location for setting up your start-up
During the past decade or so, Cyprus as established itself as an ideal jurisdiction for savvy businesspeople looking to set up new business or start-ups within the European Union, with hundreds of entrepreneurs setting up their start up in this Mediterranean island.
There are plenty of factors that favour Cyprus as the destination of choice for these professionals:
- One of the lowest corporate tax rates within the EU, at just 12,5% on net profits
- Probably the most competitive IP Box regime, currently in the world, with qualifying companies taxed at just 2,5% (learn more about Cyprus IP Box)
- Generous personal tax exemptions for company employees
- Minimum requirements to move one’s tax residency in Cyprus and benefit amongst others to tax-free worldwide dividends for 17 years (learn more about Non Dom Cyprus)
- An ever growing technology hub, attracting hundreds of new technology companies every year.
- Member of the European Union.
- First-class regulatory, tax, and legal framework with plenty of tax benefits and low start-up costs available to businesspeople.
- Massive tourism sector that receives close to three million visitors on an annual basis.
- World-class shipping industry serving as one of the top three leading shipping management centers in the world.
- Robust international business center that attracts a myriad of foreign investors from Russia, the EU, Middle East, and beyond.
- Knowledgeable and skilled core of financial services professionals that can offer you the whole range of services required to set up a business.
- Sunny weather all-year round to enjoy some of the most beautiful beaches in the world.
- A very comfortable, safe, and family-friendly quality of life with excellent infrastructure, communication services, educational institutions, and recreational activities, among others.
- An international and cosmopolitan lifestyle
How we will help with your start up formation structure
Here in Meridian, we excel at providing start ups with clear and practical legal advice. On budget and on time. We will take care of all your concerns, whether these have to do with your start up formation structure, structuring the ownership of your business, drafting tailor made Articles of Associations and shareholders agreements, organising and putting in place your intellectual property strategy plan (learn more about Intellectual Property Management and Intellectual Property Protection), taking care of data protection and GDPR compliance, tax planning, immigration needs for you and your employees, drafting of legal agreements, legal guidance, accounting needs as well as plan potential exit plan strategies.
Meridian start-up formation package
If you are considering setting up your start up in Cyprus, then our boutique start-up package, could be your answer.
Our affordable and fixed offering, with a one-time fee to help you with your start up formation, starts at only EUR 3,500 + vat and includes the following:
Let's talk! Fill in the form below and schedule your 30 minute free consultation with one of our corporate lawyers, to discuss any questions about start up formation.