One of the latest achievements of Chambersfield Economides Kranos is to receive the award of the Leading Adviser for Cyprus for 2021.

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For Chambersfield Economides & Kranos is the second time receiving a distinction from Acquisition International.

The first time was in 2019, for its Corporate Excellence and this year is appointed as the Leading Adviser for Cyprus.

More precisely, Chambersfield Economides Kranos is the leading Full-Service Cross-Border Law Firm of the year in Cyprus.

Chambersfield Economides Kranos is an international law firm with a physical presence in more than 9 countries and having offices in Limassol, London, and Singapore.

The legal firm provides a variety of services to international individuals and institutions.

A highly experienced team of professionals undertakes with ethos, professionalism, respect and personal approach, legal and business cases on all legal and corporate services.

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What are investors’ main objectives?

What do investors examine before proceeding with the investment?

What are the best investments in Cyprus?

The list of questions is endless and the answers always vary, depending on the uniqueness of each case. Investments, as a concept, refer to any activity that intends to exploit new opportunities with the sole purpose of capital increase.

So, when an investment is materialized, the outcome should result in profit and capital increase, otherwise it is considered as spending. Consequently, investors seek a return on their capital, either on a long-term basis or as traders on a short-term basis.

The combinations of opportunities and options in the international market are limitless and no-one can list them all, per se, since they differ considerably.

My experience as a lawyer and CEO of the international law firm Chambersfield Economides Kranos has helped me identify many and varied promising investment opportunities in Cyprus. Before naming and analyzing them, I would like to mention a tendency that I have come across in the past few years, usually observed among young investors/entrepreneurs.  It is usually referred to as “analysis paralysis” and describes the way investors tend to over-think and over-analyze an investment opportunity, resulting in them taking no action. This is quite often found among start-ups, which are themselves considered high-risk investments. In their attempt to minimize their risks, start-up entrepreneurs over-analyze their options, resulting in an idea that is never realized.

Despite this, I must also say that, in the past few years, Cyprus has accomplished the impossible and is, in my opinion, among the ‘fighters’ of our era, earning the respect of the international market. After the financial and banking crises in 2013, the bailout programme agreed between the Government and the Troika (the European Commission, the European Central Bank and the International Monetary Fund), the downgrading to “junk” status by the credit rating agencies and the implementation of the AML Directives, Cyprus has managed to rise up and thrive once more, earning a place among the most dynamic and stable business centres in the world, with a growing economy that attracts international investments. Cyprus, as a European Union member state and a business hub, offers various investment opportunities.

Below, I identify some of these, from both traditional and emerging industries.

Top Three Traditional Cyprus Investments

1 Real Estate

The Real Estate industry is again thriving in Cyprus. The Cyprus Investment Programme is a significant booster which, when successfully implemented, encourages foreign direct investment (FDI) and attracts High Net Worth Individuals to settle and conduct their business activities in Cyprus. Today, there are numerous attractive opportunities in real estate, both commercial and residential units, all over Cyprus that promise a relatively secure initial capital investment, an excellent Return on Investment (ROI) and capital appreciation.

2 Tourism

According to the World Data Atlas, “In 2017, the contribution of travel and tourism to GDP for Cyprus was 22.3 %.” Moreover, Deputy Minister of Tourism Savvas Perdios has stated that “the tourism industry has the long-term potential to contribute to Cyprus’s economy by 25%.” Tourism is one of the strongest industries in the Cyprus economy and it is continuously increasing its competitiveness, through new developments and strategies. Therefore, investments on this sector are considered premium, especially when investors target large-scale projects such as the construction of marinas, luxury resorts, etc.

3 Shipping

Cyprus is renowned for its high-quality maritime services, as well as for its reliable operational infrastructure and appealing legal framework. As a result, Cyprus is the third largest ship management jurisdiction in the EU and possesses a large merchant fleet market share on a worldwide basis. An investment in this industry, through the establishment of a Cyprus entity, is considered very promising since services, registration fees and taxes are very competitive, compared to other EU member states. Additionally, it is worth noting Cyprus’ EU-approved Tonnage Tax System, which is a major advantage that should be taken into consideration by investors.

Top Three Emerging Cyprus Investments

1 StartUps

In the last few years there has been a substantial increase in the number of startups in Cyprus. The highly educated workforce and eligible human capital, incentives provided by the government (e.g. the startup visa regime), as well as the straightforward legislative incorporation framework and attractive tax system are just some of the main factors that have contributed to the startup sector’s growth. Major players in the field of technology have proven that Cyprus is a very favourable jurisdiction for startups, since, after their establishment in Cyprus, they have successfully run multi-million international businesses.

2 Investment Funds

Investment funds represent the new emerging market that Cyprus is seeking to expand and, to this end, it is continuously upgrading its regulatory and legislative framework in order to attract foreign direct investment and has already formed various Alternative Investment Funds (AIFs) and Undertakings for the Collective Investment in Transferable Securities (UCITS). Of course, this target would have been unreachable if the professional services sector was not so strong and well-educated to support this expansion. In my opinion, investors should take a closer look at Cyprus Investment Funds opportunities, since a lot of effort and support is being provided by the legislator and other supervisory authorities.

3 Energy

The discovery of hydrocarbons marked the start of a very promising new era for Cyprus in the energy industry. Energy giants have since approached Cyprus and formed strategical alliances, upgrading the jurisdiction to that of a developing oil and gas hub for the region. Of course, from the energy industry we should not omit the growth in renewable energy that Cyprus has experienced over the past few years, mainly in the areas of wind power and solar energy. I personally advise professional investors to monitor activities in the country’s energy industry very closely, since it holds great promise and enormous future potential for development and expansion. Cyprus is a country that has a lot of investment opportunities to offer. Potential investors are therefore advised to establish cooperation with law firms that can consult and assist them in selecting the best possible combinations of investment, determining risk tolerances and the capital required to achieve a successful portfolio allocation.

Info: Michalis Economides is CEO, Advocate & Legal Consultant, Chambersfield Economides Kranos Law Firm.

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that requires professional legal advice.

Michalis Economides, Advocate & Legal Consultant, CEO of Chambersfield Economides Kranos Law firm  |  Article Publication: Gold Magazine October 2019

When a company is looking to expand internationally, there are lots of factors to be taken into consideration if its overseas business operations are to be successful. For this reason and based on my international expertise, I am inclined to believe that entrepreneurs need to thoroughly consider all the factors before deciding to engage in overseas operations.

I would recommend that they consider the following three questions when assessing the possibility of expansion:

• Is my firm ready for overseas business operations?

When entrepreneurs are in the process of deciding whether to step into another market, they must be fully prepared and aware that the decision making process can be very stressful and demanding. Therefore, when they initially start considering their  firm’s international expansion, they must first decide if their business is “ready to go internationally” and, secondly, identify their differentiation strategy and how it will be communicated in the new market.

In addition, entrepreneurs need to scale and evaluate their financial resources, development strategies, business models and the potential new challenges that may arise when they enter the new market. Moreover, it is also very important to consider the regulatory framework in which the firm will be operating, to make sure it complies, as it is well known that all business operations and transactions are regulated by both international and national legislation.

Furthermore, international expansion requires an investment budget to be allocated to the establishment of business operations, including the formation of a new local legal entity, the establishment of a local branch, networking and building relationships, travel, local representation and much more.

Undoubtedly, globalization has made expansion into foreign markets considerably easier while technology has simplified everything as it directly connects businesses with the whole world. However, to smoothen and make the business operate successfully, there are numerous legal and due diligence aspects to be dealt with by legal professionals.

Consequently, it is highly recommended that, during the initial stage of the expansion in particular, entrepreneurs should collaborate with a law firm that has significant experience in international market expansion so as to safeguard their business operations, mitigate risks, monitor the overall project, fully prepare and handle all the necessary documentations and paperwork needed via the regulatory authorities of the selected market, as well as monitor all the legal aspects of the new business operation.

• How will my firm’s core values adapt to the requirements of the new market?

All countries have different cultures and habits; companies, therefore, need to adjust their approach and adapt to the reality of each country in which they plan to operate.

There are several models for a company to follow when going global, in order to obtain know-how about the market. For instance, companies may:

i. cooperate with local companies that have already established businesses and which offer similar services/products and wish to
expand their portfolio.

ii. proceed with a Joint Venture with a local company or a company with a substantial presence in the selected market.

iii. establish a franchise model that they can promote in selected markets.

iv. start a local branch through the incorporation of a new legal entity and hiring local human capital.

v. expand their online presence into other markets.

• Why is cooperation with a law firm essential?

Regardless of the chosen business model, the experienced legal advisors in a law firm possess the knowledge and know how that will ensure the interests of the parties involved and will include clauses in the agreement that are fully compliant with the provisions of the specific national law governing business activities and transactions.

Consequently, it is of the upmost importance to choose the right legal consultant who, together with the entrepreneur, will create the most favourable conditions for achieving growth strategies and international expansion.

Thus, my advice to entrepreneurs who are interested in expanding their business, is that they should engage in consistent and continuous cooperation with an accredited law firm that specializes in corporate, commercial and employment issues and has
international connections. Through such cooperation, each entrepreneur will ensure that his strategies are properly implemented
and aligned with all the procedures of the legislative framework.

It is no coincidence that many modern companies cooperate with law firms on an annual basis, for the provision of legal and advisory services and to safeguard their relationships with customers, associates, partners, affiliates and employees.

As a lawyer and businessman myself, I am inclined to believe that all entrepreneurs, should have a thorough knowledge of the legislative and business framework governing their chosen market before implementing any strategy and be prepared with all the necessary legal documentation needed and safety measures in place, in order to avoid any negative consequences that may result from misconduct.

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