The everyday challenges of the manufacturing industry in combination with companies’ pursuit of growth, is shifting companies’ attention to more valuable and affordable options to grow their businesses. They are the pressure to achieve the profit margins which are squeezed over the high tax rates.
Cyprus is a desirable option for manufacturers willing to invest and expand their business in a small Mediterranean island, which has one of the lowest corporate tax rates (12,5%) within the EU and has double-tax treaties with over 60 countries worldwide. The excellent professional business services that Cyprus provides (e.g. lawyers, auditors, accountants, advisors) in conjunction with a highly educated workforce, which is in a position to implement the business strategy of a manufacturing company is ideal to complement the strategic position of Cyprus between the crossroads of Middle East, the Arab countries and the EU. On the other hand, a newly established regime in the banking sector is in place to finance a breakthrough industrial product in Cyprus.
The Cyprus government has introduced a variety of different incentives in order to deal with the challenges that small manufacturing businesses face in Cyprus. These incentives include, inter alia, investments in fixed assets, as well as industrial equipment and renewable energy which have already been implemented by manufacturers and small factories in Cyprus.
Manufacturers are crucial to the economy of an EU member state. They are responsible for placing safe products within the standards of the EU regulatory framework and for complying with environmental protection requirements. Manufacturers and other market entities (e.g. suppliers, traders etc) are responsible to comply with conformity assessments, prepare their technical file, issue an EU declaration of conformity, and affix the CE marking to their products. These requirements are being transposed into national Cypriot law in order to be in line with EU directives and regulations.
Our law firm is able to address the needs of, and form a business strategy for, prospective investors in the manufacturing industry by providing the following services:
- Advising the client on the formation/incorporation of a new business entity in Cyprus
- Considering the clients’ needs and blending our knowledge and experience by providing services in a variety of different areas including, amongst others, subcontracting, outsourcing, trade practices, supply and distribution chains, trust, M&A, technology, IP, product liability, tax, and employment law
- Our long-established ties with regulatory agencies and our experience with governmental authorities in Cyprus will benefit clients, as we are in a position to meet the regulatory thresholds and mitigate any risks for the prospective investors beforehand
- Advising clients on their day-to-day operational and management issues by enhancing the corporate governance of their company
- Advising clients on how to expand their Cyprus-based business in the EU and worldwide
Our technical capabilities in the legal and advisory field enhances our knowledge and experience in order to better understand our clients' business needs. We are in a position to provide our clients legal services that meet the demands of a fast-growing market and to interpret the clients’ philosophy from a legal and advisory perspective.