House Committee Pushes to Abolish Fees for Startup Innovation Boost, Cyprus

The House Committee on Energy, Trade, Industry and Tourism this week revisited a proposal aimed at abolishing fees for innovative startups, in a bid to boost innovation and entrepreneurship. This initiative represents an effort to support startups by reducing financial burdens while ensuring compliance with regulatory standards, fostering a thriving ecosystem for innovation and entrepreneurship. The proposal, initially brought before the Plenary, had its discussion deferred to a later date. Marios Mavrides, a Disy representative and the founder of this proposal highlighted the plight of around 100 small businesses, stating these are small startups, which are struggling to survive. He pointed out the financial barriers these startups face, such as the €165 company incorporation fee and the €2,000 fee for converting a private company into a public one, which is essential for accessing funds from the money market. Mavrides argued for the removal of these fees, emphasizing the need to eliminate financial obstacles for startups to attract crucial investments. The committee clarified that the proposed fee exemption would not cover fines imposed by the Registrar of Companies, maintaining a distinction between administrative fees and penalties for regulatory non-compliance. Kyriakos Hadjiyiannis, the president of the committee and a Disy representative, supported the proposal as an incentive for innovative businesses. Elena Poulli, representing the Deputy Ministry of Research, Innovation and Digital Policy, also backed the proposal, especially its potential to help innovative businesses find investors. She highlighted the ministry’s role in certifying innovative companies, valid for three years, as part of a strategy to encourage investment in innovation. The proposal’s compliance with state aid regulations was emphasized, with a representative from the office of the superintendent of State Aid Control underlining the importance of gaining approval to ensure adherence to legal standards.