Filenews 22 August 2021 - by Theano Thiopoulou
There has been a lot of talk lately about the admission of young people to the economic market and more specifically there is talk of subsidies and funding on the subject of youth entrepreneurship. Aspiring entrepreneurs can open a business abroad beyond Cyprus and either for one case or the other, there are European funds that can support business ideas. EU countries have set up points of single contact, which are e-government portals that allow you to learn about the rules, regulations and formalities applicable to activities in the field of services and the processing of administrative procedures online. There is no need for the person concerned to communicate separately with the different administrative authorities in each country.
You can also contact a domestic business organisation from the European Business Network, which can offer you personalised advice to find sources of funding or new partners." For more information on the national contact points concerned or to access the European Business Network, please visit http://europa.eu/youreurope/citizens/index_el.htm website.
Funding guide
The European Commission has published a guide on EU funding for tourism, which gathers information on EU funds available to individuals and businesses operating in the tourism sector. The online guide presents the new EU programmes included in the EU budget for 2021-2027, as part of our transition to a more sustainable, digital EU economy, and gathers information on the sources of EU funding that best supports investment in tourism. The user-friendly guide contains links to the relevant websites of EU programmes, where the reader can find the relevant call for proposals and information on each funding programme. It also includes examples of successful projects co-financed by EU funds in the past.
European funds
The EU has several funding programmes for which the complainant can apply, depending on the nature of the business. There are two different forms of financing: direct and indirect. Direct financial allocations are managed by the European institutions. Two types of funding are available: grants and contracts. You can apply for grants and contracts managed by the European Commission on the grant and call for tender portal. Grants are awarded to specific projects that are part of EU policies, usually following a public call for proposals, known as a call for proposals. You can apply for a grant if you run a business or organisation (business association, business support provider, consultancy, etc.) that implements projects that promote the interests of the EU, or if you contribute to the implementation of EU programmes or policies.
Indirect funding, managed by national and regional authorities, comprises almost 80% of the EU budget and is mainly provided through the 5 major Funds, the European Structural and Investment Funds. These Funds are as follows:
-European Regional Development Fund – regional and urban development
-European Social Fund – social inclusion and good governance
-Cohesion Fund – economic convergence of the less developed regions
-European Agricultural Fund for Rural Development
-European Maritime and Fisheries Fund
To access EU grants, you must apply through the relevant regional or national authorities (so-called managing authorities) in the Member State where you are based. The Ministry of Agriculture in the country of the person concerned is responsible for funding from the European Agricultural Fund for Rural Development. To apply for funding from the European Maritime and Fisheries Fund, you must contact the national contact points.
Requirements for the formation of a European company
If you have a business and you want to expand it to another European country, you can consider creating a European company. The European company – also known as SE (Societas Europea in Latin) – is a form of public limited company that enables you to do business in different European countries on the basis of a single set of rules.
Those interested should be aware that in order to form a European company, they must meet all of the following requirements: the registered office and head office must be located in the same EU country, you must have a presence in other EU countries (subsidiaries or branches), or all participating companies must be governed by the laws of at least two different EU countries, you must have a minimum subscribed capital of €120,000.
The competent authority in your country must inform the Office for Official Publications that you have requested registration of the company within one month of the publication of the required documents. You will need to provide the following information: name of your European company, number, date and place of registration of the company, date, place and title of the publication where the details of the European Company were published in your country, registered office of the European company, sector of activity of the European Company. Your details will be published in the Official Journal of the European Union.
Fast processes
There are countries in which trying to set up a business can be described as a breeze. There are others, on the other hand, who have paved a road with obstacles in front of those who aspire to do so. The requirements for starting new business vary from country to country. However, the EU urges all countries to achieve a number of objectives to facilitate the creation of new businesses, such as:
● setting up a business in a maximum of 3 working days
● cost less than €100
● completion of all procedures through a single administrative body
● completion of all registration formalities via internet
● registration of a company in another EU country online (with the help of national contact points)
Eight working days
In Cyprus it usually takes 8 working days to complete the company and an additional 3-5 working days to open a corporate account with a banking institution in Cyprus. There are many outside Cyprus who are interested in setting up a company on the island. In recent years we have seen several cases from Greece. In general, the useful points to be aware of are that, in order to start a company in Cyprus, a name needs to be registered for approval by the registrar of companies. Subsequently, all shareholders must provide the following personal records for the establishment and issuance of official corporate documents. A certified copy of identity card or passport, a certified copy or an authentic recent utility bill for verification of the address of residence, a letter of recommendation from a banking institution, a lawyer or an accountant for the identification and certification of the person, the questionnaire for the establishment of a company completed, a recent CV of the applicant, a tax return for the previous year. With the approval of the company by the Registrar of Cyprus Companies, the applications to the tax office for the acquisition of a Cyprus Tax Identification Number (TIN) follow.
There is no minimum share capital for the establishment of a company, the annual maintenance fee of a Cypriot company is €350, a Cyprus company has to declare a director (or more), a secretary and a shareholder (or more) and the director can be any person with a clean criminal record. A Cyprus limited company can be used for trade purposes, professional services, online stores, technology companies, shipping, investments, real estate ownership, intellectual property ownership, etc. For a specific nature of operations it may require approval from the competent local authority.
Funds for start-ups
There are various EU funds available for start-ups. To find out which of them meets your needs, visit the Startup Europe Club and learn about funding opportunities. You can also use the Startup Europe Partnership platform and ask for help in expanding and growing your business. If you wish to increase the visibility of your business plan, you can register it in the European Investment Project Portal (EIPP). The portal enables you to contact potential international investors.
New Entrepreneurship Support Plan
If someone wants to open a business in Cyprus, the Ministry of Industry has the New Entrepreneurship Support Plan. It aims at the development, support and promotion of entrepreneurship by placing emphasis on specific population groups such as young people and women who wish to do business in any economic activity other than those mentioned in the project guides, making use of their knowledge, experience, training and talents.
Beneficiaries:
-Young people, men and women who are legally residing in areas where sole control has been exercised by the Republic of Cyprus for the last six months and have free access to work.
-Unemployed or employed
-Young people aged 18-29, men 30-50 and women 30-55
-They did not exercise business activity in the last six months prior to the submission of their application, i.e. they were not self-employed or did not have a participation in an active business beyond 25%
-The intensity of the sponsorship is 70% for young people aged 18-29 while for men aged 30-50 and women aged 30-55 the intensity of the sponsorship will be 60%. The grant is calculated on the cost of the eligible costs of the investment (equipment, buildings – purchase, buildings – construction, buildings – renovation / landscaping, promotion- promotion) with a maximum eligible budget per business of €120,000 for activities related to manufacturing, services, e-commerce and tourism.
