Cyprus for eXtrepreneurs
Cyprus, the third largest island in the Mediterranean Sea, holds a strategic position at the crossroads of Europe, Africa, and the Middle East-Asia region. Its unique location has propelled Cyprus into playing a significant role in regional geopolitics and commerce, establishing itself as a strategic business hub. The annual Reflect Festival, held in Limassol, stands as a testament to Cyprus's commitment to nurturing startups, bringing together industry leaders, innovators, and entrepreneurs from around the globe.
The island has carved a niche for itself as a fintech hub, with burgeoning sectors in RegTech, IoT, cybersecurity, and gaming. Over the past decade, there has been a steady increase in available capital to fund startups, with record-breaking years such as 2021, where €85.5M was raised. Although 2022 saw a return to pre-pandemic levels, Cyprus-based startups continue to thrive, raising €17M so far this year.
With its startup ecosystem currently ranked 19th in Western Europe and 54th globally, Cyprus is poised for further growth, particularly in key sectors such as shipping, energy, banking and finance, and tourism.
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Cyprus Startup Ecosystem
Cyprus is known as a major strategic business center in the EU with easy connectivity to the Middle East, Asia, Europe and Africa. It is ranked 28th among the 132 economies featured in the Global Innovation Index 2023.
The Cyprus Startup Visa program extends support to talented entrepreneurs from non-EU/EEA countries, enabling them to establish startups with significant growth potential on the island. Noteworthy efforts to foster entrepreneurship and encourage foreign investment include programs like Invest Cyprus and ARIS, jointly funded by the Bank of Cyprus and Deloitte. Additionally, CYENS, a collaborative research and innovation center involving the Municipality of Nicosia, local universities, and international partners like University College London and the Max Planck Institute for Informatics, play a pivotal role in facilitating knowledge and technology transfer within Cyprus.
With over 1000 registered companies as of September 2023, Cyprus is emerging as a competitive market place for international business entities. Sectors such as Tourism, Health & Wellness as well as the Gaming industry, Sports, Luxury and Lifestyle are emerging as top choices for eXtrepreneurs to invest in.

Cyprus Company Formation
While for many founders, the primary goal of company incorporation is doing business in the chosen country, some eXtrepreneurs* look at a wider ambit of opportunities. With tax incentives provided by the government including programs like Invest Cyprus and the Startup Visa, the Startup Visa program, along with funding programs for foreign entrepreneurs, Cyprus is opted by many of such eXtrepreneurs to expand in the EU.
But the decision of choosing the right legal entity to setup one’s business in a foreign nation is extremely crucial. Depending on a various factors such as tax treatment, ease of formation, ease of compliances, ability to raise capital, to name a few.
Cyprus offers diverse company structures catering to various business needs, making it an attractive destination for eXtrepreneurs. Whether you're planning to operate locally or internationally, understanding the types of Business Entities in Cyprus is crucial.
As non-EU eXtrepreneurs generally target multiple EU countries, it is vital to factor in the ease of doing business and tax benefits along with the business goals.

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