E-trade is undeniably the backbone of the wide Digital Market. In fact, the increased take up of eCommerce EU-wide is found to affect total factor productivity, through higher efficiency of the production process entailed by firms’ recourse to online sales, and have a price effect due to specificities of online trade. The Information Society Services and eCommerce are evolving rapidly and have become the tool that empowers the innovation of economic growth.
In Cyprus, eCommerce is used for retail products on a large scale. Having an eCommerce business in Cyprus presents a number of benefits, giving your online business the opportunity to grow and expand into new markets.
Online trade is rapidly expanding on the island. The Ministry of Energy, Commerce and Industry of Cyprus, is expanding eCommerce as an innovative way of doing business. In the framework of eCommerce promotion, the Ministry launched the Programme "Epixihirite Diadiktiaka" (i.e. "Business Online"). As an indication, household internet access in 2018 was 86%, higher than the EU average internet access of 82% and the world average of 56.1%.
The world of retail is drastically changing and in consequence, online shopping has undeniably become the current retail trend worldwide. Consumers prefer to search online for their products and buy them online. Online shopping has become so simple whilst at the same time highly demanding. The consumers have the ability to search worldwide for the products they are interested into, from the comfort of their personal place, seeking interactivity, satisfaction and contributing to the creation of new products and services.
The advantage of eCommerce, is that it provides the online entrepreneur with the opportunity to expand any business and attract customers worldwide. Having an eCommerce business is not without its risks but the potential benefits and the extremely low-start up costs in Cyprus, could outweigh those risks. Cyprus is an attractive destination not only for Cypriot entrepreneurs but also for EU citizens wishing to expand their online presence. Cyprus is a member of the EU since 2004 and constitutes an international centre of excellence in the provision of professional services.
The most important sectors of Cyprus’s economy in 2016 were wholesale and retail trade, transport, accommodation and food services (26.0 %), public administration, defence, education, human health and social work activities (20.3 %) and financial and insurance activities (10.8 %).
In Cyprus, the Ministry of Energy, Commerce, Industry and Tourism is the competent authority for the implementation of the legal framework on Electronic Commerce (L.156(I)2004), based on the EU Directive (2000/31/EC) on certain legal aspects of information society services, in particular electronic commerce in the internal market, the national legislation on “Certain Aspects of Information Society Services", in particular Electronic Commerce, and Related Matters (L.156(I)2004 and amendment law L.97(I)2007) which is fully harmonized with the E-commerce directive 2000/31/EC.
For your online business in Cyprus you will need to:
- register a Cyprus company;
- build a website;
- offer online payment facilities;
If you are seeking to broaden the horizons of your business we promise we can help you. Contact us for your first free consultation here.