Ecovis in Denmark

Start-Up Business in Pakistan

In recent years, there has been strong growth in start-ups in Pakistan. According to the Security and Exchange Commission of Pakistan (SECP), the country has moved up in the World Bank’s Ease of Doing Business Index for the second consecutive year since 2019, going from 130th to 72nd in the ‘Starting a Business’ category.

Over the past few years, Pakistan has seen many start-ups and a boom in various branches of industry. This includes textiles, construction, IT and the cement industry.

How exactly have Start-Ups Boomed and Flourished during a Period of Pandemic?

Pakistan is one of the eight fastest growing economies in the world. This growth has come about as a result of the structural reforms started by the current government and the flagship project of the Belt and Road Initiative (BRI), the China-Pakistan Economic Corridor (CPEC).

Small and medium-sized enterprises in Pakistan account for 90% of economic growth, but despite this they only take up 7% of the credit provided by the financial sector. Large scale manufacturing industries have also reached a 16-year high level of growth: 14.85% in the financial year 2021. This growth has equally been encouraged by the government’s new policies which have led to expansion in sectors such as textile, construction, food, tourism, and automotive.

Would you like to invest in Pakistan? We can help you to locate your business here.

Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan

Support for Start-Ups in Pakistan

Regulatory bodies have collaborated with each other to enable an omni channel for company incorporation services. This means that they can provide services from start to finish, from incorporation to liquidation. This gives clients a unified experience where they can obtain all the services their company might need in one place. The Board of Investment of Pakistan is encouraging both local and foreign investors and providing opportunities for them to play significant roles in enabling entrepreneurs to boost the ease of doing business. In general, Pakistan provides an optimal environment for the prosperity of small businesses and multinational companies alike, as it provides low-cost factors of doing business, explain the Ecovis advisers. 55% of the total population of 220 million is under 30 years of age. This ensures that labour is readily available in various skillsets. The workforce is also very diverse, ranging from high-skilled technical resources to low-cost labourers. The fast-growing logistics sector ensures that distribution channels are always connected, providing a smooth service from start to finish.

For further information please contact:

Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan
Email: areeba.ahmed@famco.com.pk

Ecovis is now offering audit services in Serbia

In addition to our colleagues of ECOVIS SEE (tax and accounting) we welcome our new partners from ECOVIS FinAudit headquartered in Belgrade to our network.

ECOVIS FinAudit was founded on the 9th of June 1996 in Belgrade and is one of the oldest and one of the biggest audit companies in Serbia. Jelena Slovic and Zoran Ilic lead a team of 31, among them 21 auditors. Beside acting as operational partner in charge of ECOVIS FinAudit, Jelena is lecturing in education of professionals and with employees as a part of continuing education. ECOVIS SEE and ECOVIS FinAudit are located on the same address in Belgrade.

The Managing Partner of ECOVIS FinAudit Dr Jelena Slovic comments on joining ECOVIS International: “We are glad to join Ecovis International. We believe that our expertise and long experience on the local market joined with Ecovis international experience will be the way to continue to build long-lasting and effective cooperation with our clients. We are committed to provide first-rate services and quality to our clients on an ongoing basis. Thanks to the joined combination of national and international experience and expertise within the Ecovis international network we believe that we will continue to provide excellent service reconciling local and international trends.”

We warmly welcome our new colleagues from ECOVIS FinAudit to the Ecovis family!

Doing Business in Cyprus

The Cypriot government has released its new strategy action plan for attracting international businesses to Cyprus. The emphasis is on technology, shipping, innovation and research & development. Implementation will start in 2022. The Ecovis experts explain the most important measures.

Transformation of the existing Fast Track Business Activation Mechanism into a Business Facilitation Unit (BFU)

The BFU shall be the central point of contact offering services in relation to the establishment and operation of businesses such as company incorporation or registration with the social insurance and the tax departments for direct and indirect tax. It will also facilitate the issuing of residence and employment permits in Cyprus.

New policy for residence and employment permits for staff from third countries employed by foreign and Cypriot businesses

This applies to foreign companies operating in Cyprus or wishing to establish a physical presence in Cyprus, as well as Cypriot shipping, technology/innovation, pharmaceutical and biogenetics/biotechnology companies.

Main provisions:

• Minimum gross monthly salary of EUR 2,500 (with relevant academic skills, or at least two years of relevant experience).
• Right to employ support staff (gross monthly salary can be below EUR 2,500 and maximum 30% of total support staff number).
• Residence and work permit duration up to three years, to be issued one month from application.
• Maximum number of staff from third countries can be 70% of the total number of employees in a 5-year period from the date of registration with the BFU.

nternational companies wanting to invest in Cyprus or expand their business can expect advantages in some sectors from 2022.

Andreas Karaolis, FCCA, Managing Director, ECOVIS Karaolis Assurance Limited, Nicosia, Cyprus

Right to employment for family members of third country nationals with residence and employment permits

Where the gross monthly salary is at least EUR 2,500, spouses shall have the right of employment in Cyprus. This is not applicable for support staff.

Simplification of the process for granting work permits

The relevant regulations of the Aliens and Migration Law shall be amended to simplify the process.

Digital nomad visa – third country individuals working remotely from Cyprus

A new type of residence permit will be introduced for individuals from third countries who wish to live in Cyprus but work remotely for businesses operating abroad. Self-employed individuals will also be eligible.

Main provisions:

• Right to live and work from Cyprus for up to one year, with the right to renew for another two years.
• Right of family members to live, but not work, in Cyprus.

Main prerequisites:

• Minimum incoming funds from abroad to Cyprus EUR 3,500 per month (evidenced by salary advice, bank statements etc.) increased by 20% for the spouse and by 15% per minor.
• Must have medical insurance cover.
• Must have a clean criminal record.

Tax incentives

• Expansion of the existing income tax exemption of 50% for taking up employment in Cyprus to include annual salaried income of at least EUR 55,000 (currently EUR 100,000).
• Extension of the tax exemption for investments in innovative companies (50% of the cost for investments in certified innovative companies for corporate investors).
• Increased tax deductions for research & development (R&D) expenses.

Cypriot citizenship

The period of eligibility for applying for citizenship will be reduced from 7 years of work and residence in Cyprus to 5 years (or 4 years with very good knowledge of the Greek language).

For further information please contact:

Andreas Karaolis, FCCA, Managing Director, ECOVIS Karaolis Assurance Limited, Nicosia, Cyprus
Email: andreas.karaolis@ecovis.com.cy