Cyprus continues to recover its business activity.
According to the latest data from the Department of Company Registration, 197,854 companies were officially registered on the island as of the end of May 2025.
After a moderate decline in 2024, economic momentum is picking up again. Although indicators have not yet reached record levels, the direction of development is encouraging for local and foreign investors alike.
Interestingly, partnerships have become less popular as a business structure in Cyprus. While 6,173 partnerships were registered in Cyprus in 2021, only 4,966 were registered in 2025. This is the lowest figure in the last five years.
Economists attribute this trend to several factors, including shifts in the structure of the private sector and a preference for more flexible registration options, such as private limited companies. Legal complexities and tax issues have become additional obstacles to new partnerships, making this form less attractive in the current environment.
Meanwhile, the number of registered business names has shown steady growth. In May 2025, there were 49,512 registered business names, which was 3.7% higher than at the end of the previous year and 11% higher than in 2021.
This growth may indicate a rising interest in launching new brands and business initiatives, particularly among small and medium-sized enterprises. Notably, despite global instability and changes in migration policy, Cyprus maintains a strong presence of foreign companies. Over the past four years, the number of foreign legal entities operating in the country has consistently exceeded 1,200, and May 2025 was no exception, with 1,229 registered entities. This underscores Cyprus's international appeal as a business hub despite the limited use of European forms, such as SE and EEIC, which occupy an extremely insignificant place in the country's business structure.
Experts agree that Cyprus's business environment is showing signs of recovery, but the process is uneven. While individual entrepreneurs and large corporations are growing steadily, traditional partnerships are gradually fading into the background. Cyprus continues to adapt to new economic realities, gradually building a more flexible and competitive business ecosystem.