Start a Franchise Business in Cyprus
Start a Franchise Business in CyprusUpdated on Monday 30th March 2020
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When starting a franchise business in Cyprus, companies intend to improve and extend their distribution of a product or service. The franchisor provides the product or teaches the franchisee how to offer a service, while the franchisee sells this product or service to the designated market. In this article, our lawyers in Cyprus explain different aspects related to opening a franchise in Cyprus.
Cyprus franchising types
Cyprus, as a member of the E.U., has to comply with the common law practices and directives of the E.U. The legal system on the island constitutes an advantageous climate for a solid economy.
There is, though, one sector in Cyprus which has not yet adopted the E.U. franchising legislation: the property industry.
All franchising types can be set up in Cyprus, no matter if they are direct or master franchising, area development, joint venture or affiliates.
Registering a legal entity here and concluding bank relationships is rapid and efficiently effectuated, procedure which generally takes only about one week.
Our Cypriot lawyers can offer help to open a franchise company in Cyprus, no matter which kind of legal entity you choose to register. They can also help you comply with the Cypriot taxation system.
Real estate in connection with the franchise in Cyprus
The relevant aspects of the real estate legislation and the real estate market which are applied to franchisors are relevant for both local and foreign franchisors.
The general law of the country which covers most of the aspects of real estate or land law is the Immovable Property (Tenure, Registration and Valuation) Law.
Our Cypriot lawyers can provide more details related to this law. Our law firm in Cyprus also offers assistance in setting up a business in this country.
The franchise agreement can actually make provisions for the use of the franchisor’s property or provisions which offer the franchisor the right to choose a real estate where the franchisee can do business from.
If that is the case, the contractual law governs the interpretation of such an agreement. The agreement, though, has to be in compliance with the relevant provisions of the Immovable Property Law, and also it must not contradict the E.U. legislation.
If you have more questions about buying a franchise in Cyprus, or for help related to starting a business here, please get in touch with our attorneys in Cyprus.