Cyprus House Committee Proposes Fee Waivers to Empower Startups
In a significant move to bolster innovation and entrepreneurship, the House Committee on Energy, Trade, Industry and Tourism of Cyprus has revisited a pivotal proposal this week. The committee is considering a game-changing initiative that could see the abolition of fees for innovative startups. This legislative effort is designed to alleviate financial pressures on emerging businesses while maintaining a commitment to regulatory compliance.
During discussions, Disy representative Marios Mavrides, who is also the founder of this proposal, shed light on the struggles of approximately 100 small startups. He pointed out the prohibitive costs these companies face, including a €165 company incorporation fee and a hefty €2,000 fee required for the transition from a private to a public company—a critical step for startups seeking investment from the money market. Mavrides made a compelling case for the elimination of these fees to enable startups to attract vital investments and grow.
It was clarified by the committee that while administrative fees are up for exemption, fines levied by the Registrar of Companies for non-compliance would not be affected. This distinction ensures that while supporting innovation, the integrity of regulatory standards remains intact.
The president of the committee and Disy representative, Kyriakos Hadjiyiannis, expressed his support for the proposal, recognizing it as a significant incentive for innovative businesses. Elena Poulli from the Deputy Ministry of Research, Innovation and Digital Policy also endorsed the initiative, emphasizing its role in aiding innovative companies in their quest for investors.
The proposal is not just about fee waivers; it also includes a certification system managed by the Deputy Ministry that validates innovative companies for three years, as part of a broader strategy to stimulate investment in innovation.
Ensuring compliance with state aid regulations is also a priority. A representative from the office of the superintendent of State Aid Control stressed the importance of obtaining approval for any aid provided to ensure it does not contravene principles of selectivity. They reminded that any aid granted without the Treasurer’s approval would be considered illegal, highlighting the need for legal due diligence.
This proposal could mark a turning point for Cyprus startups, potentially paving the way for a more dynamic and competitive entrepreneurial landscape. As discussions continue, the business community eagerly anticipates the outcome and its implications for innovation in Cyprus.
