08/09/2015 14:13
International businesses are expressing their interest in having a physical presence in Cyprus, boosting expectations for an improvement of the subdued climate that continues to exist in the sector of international services.
According to new data from the Registrar of Companies and Official Receiver, applications for registration of companies in Cyprus fell by 1.7% to 708 in August 2015 compared to 720 in August 2014.
Despite the stabilization of the financial system and the improvement of the economy, Cyprus is affected by the unstable geopolitical environment that prevents new investments.
Market players, however, argue that despite the reduction, there is an improvement of the quality of companies coming to Cyprus and enhancing their physical presence.
CEO of KPMG Cyprus Andreas Christofides told StockWatch that "there is an increased interest by foreign companies to enhance their physical presence in Cyprus, which is very positive because in addition to the income from company registrations and services, there will be rental income while jobs will be created as well'.
According to Mr. Christofides, there is interest from Russian companies which seek to avoid new regulations promoted by the Russian government, from Greek companies because of the developments in the country and from foreign funds coming to Cyprus to invest.
Mr. Christofides notes that there is a more encouraging sentiment as more serious companies are coming to Cyprus.
The CEO of Baker Tilly Marios Klitou, in his statements to StockWatch said that "Cyprus maintains its position as an attractive business center. Our traditional customers remain in Cyprus and we now see an interest in establishing a physical presence in Cyprus. "
According to Mr. Klitou, Greece has positively affected the industry since an inflow of Greek companies is observed, mainly shipping and trading companies which had to create subsidiaries to Cyprus in order to continue their activities.
Last month international services sector recorded a decrease of 5%.
As regards the first eight months of the year, registrations show a decrease of 4% to 6968 from 7.258 in the corresponding period last year.
The number of total registered companies in Cyprus stands at 252.871.
According to new data from the Registrar of Companies and Official Receiver, applications for registration of companies in Cyprus fell by 1.7% to 708 in August 2015 compared to 720 in August 2014.
Despite the stabilization of the financial system and the improvement of the economy, Cyprus is affected by the unstable geopolitical environment that prevents new investments.
Market players, however, argue that despite the reduction, there is an improvement of the quality of companies coming to Cyprus and enhancing their physical presence.
CEO of KPMG Cyprus Andreas Christofides told StockWatch that "there is an increased interest by foreign companies to enhance their physical presence in Cyprus, which is very positive because in addition to the income from company registrations and services, there will be rental income while jobs will be created as well'.
According to Mr. Christofides, there is interest from Russian companies which seek to avoid new regulations promoted by the Russian government, from Greek companies because of the developments in the country and from foreign funds coming to Cyprus to invest.
Mr. Christofides notes that there is a more encouraging sentiment as more serious companies are coming to Cyprus.
The CEO of Baker Tilly Marios Klitou, in his statements to StockWatch said that "Cyprus maintains its position as an attractive business center. Our traditional customers remain in Cyprus and we now see an interest in establishing a physical presence in Cyprus. "
According to Mr. Klitou, Greece has positively affected the industry since an inflow of Greek companies is observed, mainly shipping and trading companies which had to create subsidiaries to Cyprus in order to continue their activities.
Last month international services sector recorded a decrease of 5%.
As regards the first eight months of the year, registrations show a decrease of 4% to 6968 from 7.258 in the corresponding period last year.
The number of total registered companies in Cyprus stands at 252.871.