4th Mar 2020
The island of the Republic of Cyprus is increasingly becoming an ideal location for a company to kick-start its business. Company incorporation procedures are simple and expedient, the corporate tax regime is friendly and, vitally for start-ups, innovations are protected under a strong intellectual property (“IP”) regime. These elements combined with a robust and current legal and judicial framework ensure a nurturing and supportive environment for start-ups.
Protecting IP assets from the outset is crucial for start-ups, not only to increase their commercial value but, more importantly, to avoid risky and costly legal proceedings at later stages. As a member of the European Union since 2004, the IP framework in Cyprus is fully compliant with European legislation. In addition, Cyprus is a member of numerous international conventions and agreements regulating IP. Within this context, Cyprus remains accessible and attractive to early-stage companies.
When it comes to taxation of IP assets, Cyprus grants significant exemptions to income derived from IP assets. In fact, up to 80% of profits generated from qualifying IP assets can be deemed tax-deductible expenses. Qualifying assets under the current tax regime include patents, copyrighted software programs, and other intangible assets that are non-obvious, useful and novel. As such, the local IP regime is particularly attractive to technology and software development companies.
Laying down a strong legal foundation is crucial when launching an innovative business. Cyprus provides a balanced and reliable package for start-ups, making it ideal as a founding jurisdiction.
The team at Chrysostomides offers an attractive array of services and is happy to assist with the development of local start-ups. We understand the sensitivities of launching a new business as well as the importance of setting up a tailored corporate structure. We follow up with assistance in navigating through the IP protection regime, drafting non-disclosure agreements and employee contracts and any other matters which may arise. Our primary aim is to develop trust with our start-up clients and support them with every step of the way.
For more information do not hesitate to contact our firm.
(This article was prepared by associate Athena Mavroyiannis, from our firm’s IP department)