The Characteristics of an Innovative Cyprus Company

The fundamental characteristics that define an Innovative Cyprus Company are as follows:

• A business that offers new or substantially improved products, services, or processes that are not readily available in the local market and that encompasses a risk of technological or industrial failure.
• The company’s activity is based on the utilization of research findings or technological, digital or scientific knowledge and involves risk due to its innovation nature.
• The company is not listed on any stock exchange market.

These businesses tend to operate within the fields of technology, digital innovation, scientific research, and other related sectors.

Benefits of Registering as an Innovative Cyprus Company

Registering as an Innovative Cyprus Company comes with an array of benefits, making it a highly attractive option for both local and foreign businesses and investors. These benefits include:

1. A 50% exemption on income from the sale of intellectual property, such as patents and trademarks.
2. An 80% exemption on profits earned from the business’ innovative activities.
3. Access to government funding and grants specifically tailored towards supporting innovative businesses.
4. Potential eligibility for the submission of reduced social insurance contributions for employees.
5. Investment in research & development activities is fully tax-deductible.

These benefits aim to create an environment that fosters innovation, encourages research & development, and promotes entrepreneurship within Cyprus.

Procedures for Registering an Innovative Cyprus Company with MECI

Registering your company as an Innovative Cyprus Company with the Ministry of Energy, Commerce, and Industry (MECI) involves a detailed procedure. The following steps detail the process:

1. Application Submission: Submit the necessary documents and completed application to the MECI. The application forms can be obtained from the MECI’s official website.
2. Evaluation: Once the application is submitted, it is evaluated by a committee comprising representatives from the MECI, the Ministry of Finance, and industry experts. They assess the application based on criteria such as the novelty of the product or service, the technological risk involved, and the potential market.
3. Approval: If the application is approved, the MECI certifies the company as an Innovative Cyprus Company.

In need, the MECI and Invest Cyprus provide assistance to businesses throughout the registration process to ensure a smooth and efficient process.

Historical Business Fact

A historical fact that may inspire potential Innovative Cyprus Companies is the creation of the first multinational company, the Dutch East India Company, in 1602. Although it ceased operations in 1799, the Dutch East India Company set a precedent for the formation and organization of future multinational corporations. Its historical significance serves as a reminder that innovative business models and approaches can shape and revolutionize the business world.

Choosing to Register as an Innovative Cyprus Company

The decision to register as an Innovative Cyprus Company is a strategic step for businesses looking to operate in an environment that fosters innovation and entrepreneurship. The incentives provided by the Cypriot government make it an attractive destination for businesses from a variety of industries.Moreover, the support provided by institutions such as the MECI and Invest Cyprus further simplifies the process and ensures that businesses can focus on their innovative activities.Remember, the success of a business isn’t solely determined by its registration status but also by its willingness to innovate, just like the Dutch East India Company did in the 17th century. Today, by opting for an Innovative Cyprus Company formation, businesses can access a wealth of opportunities in a dynamic and business-friendly environment.