Due to the coronavirus epidemic in Cyprus, the number of new company registrations has dropped sharply. Moreover, this trend will continue.
Thus, according to the latest data from the Registrar of Companies, in December 2020, Cyprus received 32.3% fewer requests than in the same month of 2019.
In total, in the last month of last year, the Registrar of Companies accepted 847 applications for new firms (1252 in December 2019). It is the lowest number since December 2013, when Cyprus experienced the financial crisis.
The number of applications for new companies decreased by 16.5% in 2020 compared to the 2019 year.
In 2020 there were 10,672 applications (12,781 in 2019).
According to statistics from the Department of Registrar of Companies and Official Receiver, the total number of new companies registered in 2020 is the lowest since 2013, when Cyprus was experiencing the biggest economic crisis in the country.
As for the total number of registered companies in Cyprus, at the end of 2020 it was 229,735.
This number increased by 2.9% compared to 2019, when 223,282 companies were registered with the Registrar of Companies.
It must be said that in recent years the sector has been restructured and adapted to the changing needs of entrepreneurs, investors and society, as well as to the new directives of numerous local and international supervisory bodies. Nevertheless, it is quite obvious that the international economic and business environment does not stand still, there are constant changes that require attention from the state. Based on this, Cyprus needs to introduce reforms that will increase the competitiveness of Cyprus through changes in the tax system and incentives for entrepreneurs. Otherwise, the downward trend in registration cannot be avoided.