Operating a Business

flag Cyprus Cyprus: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited liability company or LLC
Number of partners: Minimum 1 shareholder and Maximum 50 shareholders.
Capital (max/min): No minimum capital required.
Shareholders and liability: The responsibility of the associate member is limited to the amount contributed to the total capital.
Public company limited by shares or PLC
Number of partners: At least 7 partners.
Capital (max/min): For public limited liability company whose shared are offered for subscription the minimum capital is approx. EUR 25,630.
Shareholders and liability: The responsibility of the associate member is limited to the amount contributed to the total capital.
General Partnership
Number of partners: Minimum 2 and maximum 20 associate members.
Capital (max/min): No minimum capital required.
Shareholders and liability: Each associate member is personally and indefinitely responsible for the debts and obligations of the company.
Limited Partnership
Number of partners: At least one general partner with no limitation on the number of partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: At least one of the associate members is personally and indefinitely responsible for the debts and obligations of the company, the other members' responsibility being limited in nature.
The Competent Organisation
The competent organization is the Registrar of Companies.
Company Directories
Department of Registrar of companies
 
Setting Up a Company Cyprus Eastern Europe & Central Asia
Procedures (number) 5.0 5.3
Time (days) 6.0 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Cyprus.
Trade Register

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The Active Population in Figures

201820192020
Labour Force 625,731636,733639,279

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 72.80%74.05%74.84%
Men activity rate 76.90%78.32%79.37%
Women activity rate 68.60%69.69%70.21%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
Working hours vary according to sector and profession. The maximum number of working hours is fixed by collective agreement. It usually ranges beetween 38 and 40 hours.
Retirement Age
63 or 65 if the insured person does not meet the conditions to go on retirement at the age of 63.
Working Contracts
A written contract is not obligatory but it is now common to have one.
There are several types of contracts and Cyprus does not have a uniform contract of employment system.
The most common contract is the contract with an indefinite term. Temporary employment is uncommon though seasonal work exists mainly in tourism and agriculture.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to the ILO, the minimum wage was EUR 870 per month in 2019 (latest data available).
Average Wage
During the third quarter of 2020, the average monthly gross salary of employees was EUR 1,907 per month according to the Cyprus Ministry of Finance.
Social Contributions
Social Security Contributions Paid By Employers: 8.3% of covered earnings
Social Security Contributions Paid By Employees: 8.3% of covered earnings

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Social Partners

Social Dialogue and Involvement of Social Partners
Employees are protected from dismissal because of union membership.
Collective bargaining power is ensured and allowed (article 26 of the Constitution) and numerous trade unions exist.
Unions
Cyprus Workers' Federation
Pan-Cyprian Federation of Labour
Democratic Labour Federation of Cyprus
Unionisation Rate
The unionization rate is quite high in Cyprus, reaching 68%.
Labour Regulation Bodies
Ministry of Labour and Social Insurance
Human Resource Development Authority

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Latest Update: November 2022