Regulations and Licensing

Understand the regulations involved in buying a business, including information on local licences...

Buying a business which is engaged in lawful commercial activity is not a regulated market in Cyprus, but there are a few notable exceptions:

  1. Most types of financial services companies (such as brokers, banks, investment funds, insurance companies)
    • Banks, Foreign Bank Subsidiaries, Branches and Representative Offices are regulated by the Central Bank of Cyprus
    • Alternative Investment Funds (AIF’s) and AIF Managers, Undertakings for Collective Investments in Transferable Securities (UCITS Funds), Corporate Administration service providers (ASP’s) as well as Financial Intermediaries offering services and financial products to the public, such as Brokers, Asset Managers and Investment Managers are regulated by the Cyprus Securities & Exchange Commission
    • Insurance Undertakings are regulated by the Ministry of Finance, Insurance Companies Control Service
  2. Companies whose main purpose is to acquire and maintain ownership in real estate assets (regulation applicable only to non-EU citizens; there are no restrictions on the acquisition of real estate by EU citizens or companies domiciled in the EU)

There is ongoing controversy as to the requirements for allowing non-Cypriot companies or individuals to engage in certain services or trades that require a local license, such as real estate agents, building contractors, engineers, architects, doctors, lawyers, education professionals. In each case, the approach of the relevant regulatory or licensing authorities varies, while the treatment is different for EU and non-EU citizens. Therefore, the first advice to anyone wishing to acquire a company in the professional services sector is to inquire with the appropriate licensing or regulatory authority.

Information provided by DealMasters DM Ltd., Business Sales Specialists Mailing Address: POB 28702, Akropolis, CY-2082 Nicosia, Cyprus Tel (from abroad): +357 22 255 160 Fax: +357 22 255 180 Website / e-mail Copyright © 2015 DealMasters DM Ltd. All Rights Reserved