Overview of Doing Business in Cyprus
According to the co publication of The World Bank and the International Finance Corporation “Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises” published end of 2013, Cyprus has been ranked 39th among 189 countries.
The Doing Business guide evaluates every year regulations affecting domestic firms in 189 jurisdictions and ranks their economies in ten areas of business regulation, such as the set up of a business, resolving insolvency as well as trading across borders. For the 2014 report, data was collected during the period between June 2012 until May 2013 via questionnaires answered by correspondents of the private and public sectors in the participating countries.
Key Areas Measured by the Index
Six of the areas measured by the Doing Business indicator included: 1.) The role of minimum capital requirements in starting a business; 2.) Risk-based inspections in dealing with construction permits; 3.) The cost structure in getting electricity; 4.) Single window systems in trading across borders; 5.) E-filing and e-payment in paying taxes; 6.) E-courts in enforcing contracts.
Cyprus Performance in Business Rankings
Out of ten category rankings, Cyprus improved its position in three, kept the same rating in one and dropped its position in six categories. The main reasons pointed out for these losses are the existing need to simplify procedures as well as the high level of bureaucracy.
Challenges for Foreign Investors in Cyprus
CIPA president, Christodoulos Angastiniotis, acknowledged the problems faced by foreign investors and the need for swift reactions to new developments in Cyprus.
Comparison with Leading Jurisdictions
Singapore topped the global ranking on the ease of doing business. Joining it on the list of the top ten economies with the most business-friendly regulatory environments are Hong Kong, New Zealand, the United States, Denmark, Malaysia, Korea, Georgia, Norway and the United Kingdom.
