Business & Economy

CYPRUS: Foreign company registrations see first drop in 2018

08 October, 2018

A drop in the registration of foreign companies in Cyprus was recorded for the first time this year in September, but stakeholders and analysts say there is no cause for alarm.

According to data released by the Department of the Registrar of Companies and Official Receiver, registrations dropped by 6.7% last month, from 1,143 in September 2017 to 1,066 this year.

While September recorded a negative result, analysts say that safe conclusions can only be made by looking at the general trend of the year, which has not only been upward in the previous eight months but recorded double digit percentage increases compared to 2017.

For instance, August recorded a 10.2% spike, while the increase for the first eight months of the year compared to the same period in 2017, stands at 11.6%.

In 2017, applications for company registrations in Cyprus increased by 0.8% to 13,651 from 13,541 in 2016.

Panos Papadopoulos, senior partner at Deloitte told the Financial Mirror that the overall trend of 2018 is positive and so he does not feel concerned, nor does he perceive this a sign that the positive trend has stopped.

“With what we have seen so far, we expect the upward trend to continue. this is probably just a random result due to the timing of companies registering,” said Papadopoulos.

Commenting on the fall in the overall number of companies registered in Cyprus, Papadopoulos said that the reduction is insignificant and was expected.

He said that his has to do with a number of companies coming to the end of their life circle.

The total number of companies registered in Cyprus is down 1.58% to 214,140 down from 217,588 in 2017.

KPMG Partner Tasos Yasemides told Stockwatch that the decline in company registrations in September should be seen in relation to the rest of the months, in order to establish whether there is a downward trend or not.

"During this nine-month period, the trend is positive, recording the improvement in the economic and investment climate," Yasemides said.