Four Mistakes You Should Avoid When Incorporating a Company in Cyprus

Every investor targeting to take his venture offshore is upbeat with great dreams for growth. This is important to help you make the first bold step of going abroad. However, you will also need to be realistic and true to self in order to make the right decisions. Before starting company incorporation Cyprus procedure, it is important to check on the mistakes that has made others fall by the way.

Company incorporation in Cyprus

Cyprus’s strategic location at the Mediterranean Sea has made it a unique gateway to Europe. The location also provides companies with unique access to North Africa and Asia.  To register a company in Cyprus, you can do it on your own or use a registered agency. Agencies are considered better because they assist to craft the company registration documents and submitting them to the registry on behalf of the client. The selected agency can also serve as the company secretary and main address. Here are the main requirements for company registration in Cyprus.

  1. Clear selection of the preferred company legal form. The commonest business formation is the limited liability company.

  2. The memorandum and articles of association.

  3. A duly searched and approved name of the company.

  4. Details of the shareholders and directors. This includes details such as copies of their passports, contacts, and proof of location.

  5. The company must also have a company secretary and a physical address.

Common mistakes to avoid when incorporating a company in Cyprus

  1. Planning only for success

Though you anticipate the best, it is important to also be prepared for the worst. Planning only for success means that challenges along the way can easily push you off the road. You should take every precautionary measure to protect the enterprise especially in the early days of establishment. Think of insuring it so those inevitable losses will not hit the enterprise too hard.

  1. Failing to source for ample capital before starting operations

Once the operations of the company have commenced, it is important to appreciate that time will be required before the business can break even. If you lack ample capital, the chances are that the enterprise will be unable to drive its strategies. Here, experts recommend that you should have ample capital to support the enterprise for about 12 months before it can start paying its bills.

  1. Failing to craft a clear operational plan

In business, everything is all about planning. From entry into the market after company incorporation Cyprus to expansion to Europe and other areas. Failing to have a clear plan can be too risky. You are likely to make decisions that appear popular but with no results. Such moves will result to lose or resources and even risk of closing down.

  1. Doing it all yourself

At times, investors feel so much attached to their establishments to the extent that they cannot trust others. But this will ultimately result to slow down of the enterprise and getting outdone by competitors. Instead, you need to bring experts who can help to grow the idea after company incorporation Cyprus.

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