Open a Representative Office in CyprusUpdated on Tuesday 10th January 2017
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Cyprus provides a stable economic environment, in which many fields have developed at a fast pace. In 2016, many industries, such as tourism of financial services, registered very good results and businessmen who want to establish a business presence on the local market can register a representative office, which can be of use on a long term framework. Although the representative office can’t proceed to any commercial activities, foreign businessmen can benefit from many other activities which can be carried out through this type of business representation. Our team of Cypriot lawyers can provide legal assistance for the incorporation of a representative office in Cyprus.
What is a representative office?
A representative office in Cyprus is set up to perform various activities in the benefit of the parent company, but it cannot undertake any commercial operations. The main purpose of a representative office (also known as a liaison office) is to establish a business presence on the local market, by gathering relevant information useful for the parent company, which can be set up in another country.
A liaison office can act as the intermediary between other companies in Cyprus which are or can become business partners of the parent company. As a general rule, the liaison office can start numerous operations which do not generate revenues; our team of Cypriot attorneys can offer more details on this matter.
The video below presents more details on the representative office in Cyprus:
Activities of Cypriot representative office
Although the office will not have any commercial activities, it will be necessary to register it with the relevant authorities, including for taxation purposes.
However, it is important to know that the liaison office will not require a minimum share capital, as it is the case for the legal entities available in Cyprus.
A representative office can perform the following activities:
• market research;
• market survey;
• collecting information on the characteristics of the local market;
• establish business relationships with other company set up in Cyprus.
Businessmen interested in receiving more details on how to register a representative office in Cyprus can address to our Cypriot law firm for legal representation.