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Our company specializes in search, processing and analysis of data from the trade registers worldwide, as well as in the study of corporate bonds. Every day we provide reports of Cyprus companies.
Last year we already showed you the study of the Cypriot corporate sector. We now publish updated statistical data and infographics on Cypriot companies from 1970 to the year 2016. In total there are more than 419 thousand entries registered in the Cyprus corporate register: this is the number of active and already liquidated companies of various types. This article is devoted to the study of these companies.
All charts are interactive: to find accurate data on legal entities for a certain year, just hover your mouse over the chart.
How many companies are there in Cyprus?
The graph shows the number of companies registered in Cyprus since 1970. It can be noted that the registry contains only 6,075 legal entities for the period from 1900 to 1970, but nowadays many of them have already been liquidated or are in the process of liquidation.
In the year 2016 the number of entries in the Cyprus business registry has increased 69 times and the number of companies has reached 419871.
The first chart demonstrates quite logically that the number of registered Cypriot legal entities is increasing every year. However, as will be discussed later, not all of these companies survived until 2016.
How many companies are registered in Cyprus each year?
This chart shows in detail the number of companies registered in a certain year. In other words, it graphically visualizes the annual growth rates of the number of companies. According to the official register, in 1970 there were only 822 companies registered, while in 2016 in Cyprus appeared 15,740 new legal entities.
It is possible to note the peak of registered companies in 2007, which is 30,823. The interest of business to the transfer of its business to Cyprus or to the registration of new legal entities in this zone can be explained both by the joining of Cyprus to the European Union in 2004 and by accession to the Euro zone in 2008. Such steps significantly increased the investment attractiveness of the country, simplified the conduct of business and monetary transactions, which led to a significant increase in the number of companies registered in Cyprus.
At the same time, many business owners decided to save money by registering the company in 2007 and paying with Cyprus pounds which were depreciating since 2005. The peak at 2007-2008 point can also be explained by the economic crisis, accompanied by the desire of business owners to avoid the cost of paying higher taxes and maintain profitability in a face of the global crisis.
After a peak in 2007 the growth rate of new legal entities are reduced, and the overall slowdown trend continues until 2016. In 2015, 13,146 legal entities were registered, in 2016 there were already 15,740 companies. Such a tangible increase is comparable, perhaps, to the crisis year 2009.
The status of Cyprus companies
It is worth noting that the previous charts are based on the number of entries about legal entities in the Cyprus registry, but not all of these companies continue to operate. The number of liquidated legal entities, as well as companies in the process of liquidation, can be seen on the following chart.
The graph also shows that the number of liquidated companies is proportional to the number of registered ones in all observed cases since 1970. The exception is the crisis in 2007-2008, as well as the period from 2012. The growth in the liquidation of legal entities since 2007 is due primarily to the recession of the economy and the drop in liquidity of many companies.
How long do Cyprus companies live?
The graph shows how many companies registered in a given year, are operating at the end of 2016. It also shows the share of liquidated Cypriot companies, as well as companies currently in the process of liquidation.
Of course, we see exactly the picture that logic suggests: the older the company, the higher is the probability that it will be liquidated, while newer companies continue to operate.
Companies registered in the 80's and 90's began to actively lose their registration.The matter is that on the 11th of January 2016, the Registrar of Companies proceeded to the strike-off (deregistration) of over 55,000 Cyprus companies that had failed to fulfill their statutory obligation to file their annual returns within the specified timeframes.These companies lost their registration after three months.
At the same time, you can see how the share of active companies, founded in the 70s, has grown in comparison with the data of the last year. This probably happened because the company, any of its members or creditors can file a petition for the restoration of registration for twenty years from the date of publication of the Cyprus Registrar decision to suspend the registration of this company. Apparently, these oldest companies received such a warning about suspension of registration, but then restored it, providing the Cyprus registrar with a report on their annual income.
When is it better to register a company in Cyprus?
The following chart shows the months in which the companies in Cyprus were registered the most often from 2010 to 2016. At a first glance, the graph does not demonstrate the presence of a distinct seasonality in the registration of legal entities. However, there is a fairly obvious decline in the number of registrations in the first months of the year, in January and February. You can also note the trend towards an increase in the number of company registrations at the end of the year, from October to December.
The most popular types of companies
The most popular type of legal entity registered in Cyprus is a limited liability company. The second most popular type is a sole proprietorship. Also in the register of legal entities there are data on branches of foreign companies and partnerships registered in Cyprus, but they are relatively uncommon.
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i-Cyprus team