Why Fintech Startups use Cyprus as a Jurisdiction for their Company Incorporation
Cyprus is one of the leading countries powerfully embracing digitization in several sectors. The Fintech sector is beginning to gain massive global recognition due to the implementation of next-gen strategies that is causing businesses to thrive and expand within the country.
The friendly legislation, tax incentives, and a welcoming environment help businesses to grow speedily in the country. Also, the country’s location makes it a great marketplace for businesses that would love to expand to other continents.
Since the wake of digitization, several countries around the world have been looking into maximizing this global trend to improve the standard of the nation and its people. Some countries in Europe and America, as well as the Middle East and Asia, have been putting up several implementations in the aspect of information and technology, all of this in a bid to become digitally relevant.
One of the countries worth mentioning is Cyprus, which has grown over the years to acquire and retain the center-stage in advanced fintech digitization, among other notable digital developments in other sectors.
Notable Features that Stand Out
Cyprus declared public interest in focusing more on digitization in all its sectors as far back as 2012. This they did with the launch of the Digital Strategy, which was in line with the European Digital Agenda. However, the Cyprus government took it a step further than most other European countries by dwelling on improving the digital strength of the fintech industry, hence encouraging SMEs and large businesses to grow and expand in the country continually.
Some of the notable features that stand Cyprus out among the other countries include:
- A corporate tax rate of 12.5%, making it the lowest in Europe
- It is a well-established yet traditional legislative backing for the Fintech industry, making it known to all and sundry.
- Solid tax incentives for businesses and other subsectors of the fintech industry, hence ensuring collaboration and ease of growth
- Multilingual and experienced workforce, exposed to next-gen technology, among others.
Biggest Fintech Companies in Cyprus
Due to the rapid expansion and forward-thinking implementation in the Fintech industry, several startups have been able to establish their business with ease in Cyprus. Some of the notable ones include:
- IronFx Global
- Blackmoon Financial Group
These and many other companies have expanded deeply into the Fintech industry due to the favorable implementation of digital currency and artificial intelligence into the industry. Also, because of the strategic location of Cyprus, being at the center of Europe, with a link to the Middle East and Africa, it becomes easy for these businesses to expand in no time.
Jurisdiction and Guiding Laws to Check Liability Issues
The fintech industry of Cyprus has no specific legislation guiding its operation; the same traditional legislations used in the products and services niche also applies to the Fintech industry. Some of the notable laws include:
- The Law of Electronic Money
- The Business of Credit Institutions Laws 1997 to 2018
- The Transparency Requirements Law
- The Takeover Bids Law
- The Security and Stock Exchange Law
All of these and many other legislations guide the system and ensure that the operations of the Fintech Industry are always in check so as not to incur liability issues.
Cyprus is an excellent location for any business-oriented individual or company who would not mind collaboration and be ready to abide by the laws governing the land. With the rate of digital expansion in the country, in years to come, Cyprus will gain global recognition in the Fintech Industry.