Cyprus company registrations down 60 per cent in May 2013

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images (5)During the March crisis Cyprus suffered a decrease in the number of company formations due to the hard hit on the bank sector.

This may have showed a 60% fall in the number of new company registrations. According to the company registration applications in May, this reached 640 compared with 1,600 last year and 1, 786 in 2011.

However, the services providers and the official authorities of the island are very hopeful for the future months due to the recent improvements in the corporate regulation sector. Cyprus agreed to implement the required fiscal adjustments and structural reforms to support its competitiveness, as well as, its sustainable and balanced growth, allowing for the unwinding of macroeconomic imbalances.

The expectations for the recovery of the financial sector are high as Cyprus is still one of the lowest tax jurisdictions in Europe.