The encouragement of foreign participation in the Island's economy is an expressed policy which is strongly endorsed by all official bodies and authorities as well as by the Cypriot people themselves. This generous and liberal approach is already paying dividends and has successfully generated a growing awareness among foreign corporations and individuals of the unique advantages of using Cyprus as a business base.
The fact that Cyprus today is a booming regional financial center, is also due in no small part to the Island's system of organized administration and civilized Western traditions. To a large extent, these were inherited from the British who controlled Cyprus before it became an independent sovereign republic in 1960.
The Turkish invasion of 1974, which left some thirty seven percent of the northern part of the island under Turkish occupation, did little to interrupt the unparalleled period of growth, prosperity and commercial expansion which followed independence. However, due to the authorities' expansionary economic policy and the initiative and enterprising spirit of the private sector, social and political security continue to form the cornerstone of the Cypriot society. Indeed, although the Cyprus problem has not yet been solved, the rule of law and political stability are guaranteed by the efficient functioning of democratic institutions and by dynamic economic development.
Today the authorities are demonstrating more clearly than ever before that they are seriously committed to refining and expanding the legislation and regulations in order to secure foreign involvement in the Island's economy. Therefore, an extremely favorable environment for all forms of offshore business activities and onshore foreign investment has been specifically structured to ensure that they enjoy an infrastructure which has the maximum potential for success and growth. Consequently, applications for the registration of offshore companies have always been handled with speed and efficiency by all relevant authorities.
The number of offshore companies being registered annually in Cyprus continues to grow and so does the volume of companies which are incorporated abroad and register a place of business or branch on the Island. Currently, there are more than twenty thousand offshore entities registered in Cyprus and some one thousand two hundred of them maintain fully-fledged offices on the Island.
Accordingly, it is anticipated that the status of the island as a major offshore business center will continue to expand and flourish.
CAUTION: The information in this article is subject to change without notice. Application of the information to specific circumstances requires the advice of lawyers who must rely upon their own sources of information before providing advice. The information in this article is intended only as a general guide and is not to be relied upon as the sole basis for any decision without verification from reliable professional sources familiar with the particular circumstances and the applicable laws in force at that time.
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