Cyprus is proposing to eliminate fees for innovative startups to boost innovation and attract investors. This initiative includes abolishing incorporation fees and easing the transition of private companies into public entities, showcasing the country’s commitment to nurturing a thriving environment for entrepreneurship.
What action is Cyprus taking to support startups?
Cyprus is taking action to support startups by proposing to eliminate fees for innovative startups. The aim is to reduce financial barriers, making it easier for startups to comply with regulations and attract investors. The initiative includes abolishing the incorporation fee and easing the transition of private companies into public entities.
A Push for Progress in the Startup Scene
In a recent assembly, the House Committee on Energy, Trade, Industry, and Tourism revisited an impactful proposal. The focus: to invigorate innovation by abolishing fees for innovative startups. The committee’s revisit of this proposal is a telltale sign of Cyprus’s commitment to nurturing an environment where entrepreneurship can flourish. Striving to reduce the financial hurdles, the initiative aims to smooth the path for startups to comply with regulatory standards without being weighed down by excessive costs.
Marios Mavrides, a Disy representative and the founder of this initiative, pinpointed the struggles of approximately 100 small businesses. His words painted a vivid picture of the current predicament, “these are small startups, which are struggling to survive.” The financial obstacles he referred to include not only the €165 incorporation fee but also the hefty €2,000 fee required for a private company to transition into a public entity. This conversion is no mere formality; it’s a crucial step for startups seeking to tap into the money market’s resources.
Removing Barriers to Attract Investments
Mavrides’s argument for shedding these costs is clear. “That has to go away,” he said, indicating the need for companies to attract investors without being hamstrung by fees. The committee echoed his sentiments, clarifying though that fee exemptions wouldn’t extend to fines from the Registrar of Companies. This decision draws a clear line between routine administrative fees and penalties for failing to adhere to regulations.
Kyriakos Hadjiyiannis, the president of the committee, also chimed in with his backing. He recognized the proposal as a significant “incentive for innovative businesses.” Elena Poulli, a representative from the Deputy Ministry of Research, Innovation, and Digital Policy, shared her support. She underscored the ministry’s role in granting a three-year certification to innovative companies, a move that aligns with the broader strategy to drive investment into new ventures.
Aligning with Legal Standards
The proposal’s alignment with state aid regulations was not missed. A representative from the office of the superintendent of State Aid Control highlighted the importance of receiving the Treasurer’s approval to ensure the aid doesn’t violate selectivity principles. “An aid granted without the approval of the Treasurer is considered illegal,” they cautioned, underscoring the proposal’s need to navigate within the legal framework.
The committee’s discussions are more than mere rhetoric; they represent proactive steps towards a brighter, more innovative future for Cyprus’s economy. By easing the financial strain on startups, the island sets its sights on becoming a buzzing hub for fresh ideas and bold entrepreneurs ready to leave their mark on the global stage.
What action is Cyprus taking to support startups?
Cyprus is proposing to eliminate fees for innovative startups to reduce financial barriers, attract investors, and nurture a thriving environment for entrepreneurship. This initiative includes abolishing incorporation fees and facilitating the transition of private companies into public entities.
Why is Cyprus focusing on eliminating fees for innovative startups?
Cyprus is focusing on eliminating fees for innovative startups to invigorate innovation, reduce financial hurdles, and attract investments. By removing these costs, startups can comply with regulatory standards without being burdened by excessive fees, ultimately fostering a more conducive environment for entrepreneurship.
How is the proposal to eliminate fees for startups received by key stakeholders?
The proposal to eliminate fees for startups is being positively received by key stakeholders, including the House Committee on Energy, Trade, Industry, and Tourism in Cyprus. Representatives such as Marios Mavrides and Kyriakos Hadjiyiannis have expressed support for the initiative, recognizing it as an incentive for innovative businesses and a step towards attracting investments into new ventures.
What legal considerations are being taken into account with the proposal to eliminate fees for startups?
The proposal to eliminate fees for startups is aligning with legal standards, including state aid regulations. Approval from the Treasurer is highlighted as essential to ensure compliance with selectivity principles and prevent the aid from being considered illegal. By navigating within the legal framework, Cyprus aims to create a more innovative and legally sound environment for startups to thrive.
