SETTING UP IN A NEW COUNTRY CAN BE A COMPLICATED AND STRENUOUS PROCESS. PwC’S PATHFINDER SERVICE PROVIDES A ONE-STOP-SHOP THAT AIMS TO FULFIL THE NEEDS OF FIRMS AND INDIVIDUALS DURING THEIR FIRST MONTHS IN CYPRUS AND THEREAFTER. PwC FIRMS ALL OVER THE WORLD PROVIDE PATHFINDER, A SERVICE WHICH SERVES AS A VALUABLE ROADMAP FOR THOSE ENTERING A NEW MARKET, OFFERING BOTH GLOBAL AND LOCAL EXPERTISE. FROM THE FIRM’S VAST BODY OF INTERNATIONAL KNOWLEDGE, PATHFINDER EXPERTS UTILISE THE MOST SUITABLE PARTS AS THEY HELP COMPANIES ACHIEVE THEIR GOALS.
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s a member of the European Union, Cyprus has adopted a free market economy system, affording great opportunities to the international business community. It has established itself as an important international business centre, mainly due to its excellent infrastructure, macroeconomic stability, geographical location, qualified and multilingual labour force and – last but not least – its advantageous tax system. These profound benefits have encouraged many international businesses to set up their offices on the island. Setting up in a new country is no easy task. International companies often face a number of key challenges which could potentially turn into pitfalls. They include: • A lack of knowledge of the country’s legislative framework and requirements with regard to setting up and operating a business in Cyprus. • A shortage of information regarding other legislative/compliance requirements (local/ EU). • Limited information on the country’s economic, business and social environment. This includes information on the property market with respect to setting up an office or buying/renting a residence, and on the job market (availability of staff, remuneration levels, benefits, etc.). • Taking the right decisions on all core aspects of the setup to fit the company’s specific needs and plans, i.e. setting up the most efficient tax and legal structure, choosing the right vehicle, the right city, etc. • A lack of information regarding the local
authorities, how to liaise with them and the time needed to complete the various setup processes. imited information regarding the time•L frames of other core parts of the setup process, e.g. how long it takes to recruit staff. he need to find the right contact persons in •T the country to act as a source of information and support. he challenges of dealing with many parties/ •T service providers in the process of setting up and the inefficiencies this produces (e.g. the time and/or money spent on multiple explanations clients’ requirements and the
CYPRUS HAS A WEALTH OF HIGH-CALIBRE PROFESSIONALS THAT CAN BE CONSIDERED FOR ALL POSITIONS need to tailor these explanations to the various target audiences). Gold spoke to Tony Hadjiloucas, Partner and Phryni Yiakoumetti, Senior Manager from PwC Cyprus Pathfinder Services Team. Gold: How long does it typical take to establish a company? Tony Hadjiloucas: It depends largely on the particular setup envisaged by the client and the complexity of the task at hand. For instance, the procedures for registering a company with the relevant authorities in Cyprus can be completed in as little as approximately one working week, for a fairly standard operating model, e.g. a simple financing and/or holding vehicle. In
the case of using an already existing (i.e. ‘shelf’) company, this timeframe can be reduced even further. The company then needs a few more days to register with the various authorities (i.e. tax, VAT, etc.), to open bank accounts and arrange banking formalities. Gold: There are obviously a lot more practical issues that have to be worked out. Phryni Yiakoumetti.: Yes. An important factor concerns the city in which the offices will be based and there are some basic considerations such as whether to rent or purchase offices. Clients then need to view suitable properties, negotiate and finalise contracts, etc. I would estimate a minimum of 2-4 weeks, depending on whether it is necessary to identify properties with unique parameters and so on. In addition, sourcing staff from the local market is an exercise that can take up to 2-3 months, given that it includes placing advertisements, interviewing candidates, making employment offers and considering the notice period that the chosen candidates must give to their existing employer. In the meantime, the firm is happy to tap into our own highly qualified resources by providing PwC employees on secondment to the client premises, as an interim staffing solution. Cyprus has a wealth of high-calibre professionals that can be considered for all positions but time is needed to find the right people Gold: What about members of staff who are relocated from abroad? P.Y.: Some clients also choose to relocate a number of senior management and specialised employees from their offices abroad, to lead or work in the Cyprus establishment. The fact that Cyprus is an EU member offers benefits such as freedom of employment for EU
THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
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