2023 Doing Business in Cyprus (India Edition)

DOING BUSINESS C YPRUS
48
INDIA EDITION
trade route and can certainly contribute as an alternative location to berth or refuel
ships. Cyprus also participated in the 3 rd Global Maritime Conference of Mumbai, one of
the main shipping gatherings of key players of the industry around the world.
Cyprus is a strong regional hub and EU base
for international business and offers many
advantages for companies engaged in cross-border
activities, what advantages does Cyprus offer
specifically to Indian business?
As India is an important trade and investment partner for the EU, and holds
significant additional potential in this regard, the resumption of the much-awaited
negotiations between the EU and India to establish a Free Trade Agreement (FTA)
in June 2022, after a gap of nine years, was truly a major positive development. It is
our true hope that during the next round of negotiations, the two sides would make
further progress in the course of concluding the negotiations. Additionally, with its low
corporate tax rate, high quality of skilled professionals, expertise of European laws, also
similar base of legal systems (based on Commonwealth laws), Cyprus is considered a
gateway to Europe and appears attractive to foreign investors – offering additional tax
benefits which aim at bringing Indian investors to Europe at a more attractive cost than
many other European locations.
What sectors or niche segments in Cyprus do you
think have untapped potential in terms of attracting
more Indian investment and cooperation?
In terms of investment, Cyprus
remains among the 10 largest sources of
FDI in India, and thanks to India’s decision
to reclassify Cyprus regulated funds and
fund managers as Category 1 FPIs led to
an increase of over 100% in the FPIs and
is a sector which will continue to grow.
Moreover, in December 2021, Invest India
and Invest Cyprus signed an MoU, with the
aim of strengthening bilateral efforts for
increasing mutual investment activities,
and for promoting business cooperation
between the companies from both sides.
The Trade Office of the High
Commission in New Delhi facilitates the
IThe two countries are poised
to consistently work together
towards further strengthening
cooperation in areas such
as information technology,
science, financial services,
shipping, pharmaceuticals,
tourism and renewable energy
– particularly solar energy.