In light of the intensification of competitionand especial ly in conjunction with theaccession of Cyprus to the European Union,the Government has decided to pursue anumber of measures in order to further enhanceand simplify the business and investmentenvironment.

Towards this end, and in its effort to encourageand facilitate investments, the Governmenthas reduced the level of bureaucraticintervention and under the auspices of theMinistry of Commerce, Industry and Tourism,has set up in Nicosia a One-Stop Shop for bothlocal and fore ign based companies .

Inside this issue:Page 1 .. .

One Stop Shop

Multimedia version of FISC’s Guide

Page 2 .. .Success Story:ColumbiaShipmanagement Ltd

Page 3 .. .Article:A Reliable Trust Centre

Page 4 .. .Article:Intellectual Property

Page 5 .. .FDI News

About us

A wide range of services are offered to the investors, including:

Provision of information/guidance to potential investors and aftercare serviceto existing investors

Registration of a company

VAT registration

Income Tax registration

Registration to the Social Insurance Fund and Employers´ Registry

Application for the issue of residence and work permits

www.investincyprus.gov.cy 1

Launching of

One Stop Shop

Setting up a businessin a quick and simple way

The Government has adopted the institution ofthe One-Stop Shop to bypass the existingprocedures whenever these are dysfunctional.The aim is to facilitate, accelerate and simplifythe process of setting up a business.

Consequently, from now on investors andbusinessmen will only need to be in contact withone single point to obtain almost all the requiredpermits in one streamlined coordinated processrather than having to go through differentgovernment services. Therefore, reducingconsiderably the average time for setting up abusiness; aiming to one week.

One-Stop ShopMinistry of Commerce, Industry and Tourism

13-15 Andreas Araouzos Street1421 Nicosia, Cyprus

Tel.: +357 22 409328 / 345Fax .:+357 22 409432

E-mail: onestopshop@mcit.gov.cy

The Guide for Fore ign Investorsnow ava i lable in Mult imedia Vers ion

The latest edition of the Foreign Investors Service Centre’s publication "A guide for foreigninvestors" is now available in multimedia version. The multimedia version comprises of thefollowing sections: Cyprus in brief, EU Membership, The Economy, FDI Policy, Registrationprocedure, Labour force, Tax Policy, Investment incentives, Larnaca Free zone; its overall aimis to provide guidance to companies interested in exploring investment opportunities andestablishing a presence in Cyprus.

The "A guide for foreign investors" multimedia version is now available on CD ROM format andwill also be accessible by the website “www.investincyprus.gov.cy”. Foreign investors are invitedto contact the Foreign Investors Service Centre in order to receive CD Roms.

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“Columbia's growth and expansion over the years is attributed to the uniqueness of Cyprusbeing the island's strategic position at the crossroads of three continents,

its comprehensive legal framework, double tax treaties regime, communication system,banking system, the infrastructure in general and last but not least its highly educated labor force.”

www.investincyprus.gov.cy 2

Success Stor y COLUMBIA SHIPMANAGEMENT LTD

Columbia Shipmanagement in Cyprussince 1978

Our story began in 1978, with theestablishment of the company in Limassol,Cyprus. Just as a Master Mariner identifiesthe characteristics of a quality port, Mr.Heinrich Schoeller identified with theuniqueness of Cyprus to begin Columbia.

The company started with the crewing ofchemical tankers and reefer vessels. In1979, the first full management vesselsfrom foreign owners were taken undercontract.

With Captain Dirk Fry joining Columbia asManaging Director in 1980, Columbia hadan office staff of 35 and a total of 16 shipsunder full management and 45 shipsunder crew management.

Managing Director of Columbia, Mr Dirk Fry

Columbia Shipmanagement in Cyprustoday

Columbia has been a forerunner in thepromotion of quality assurance in shippingsince its inauguration with the quality ofservices provided to clients being one ofthe main founding corporate guidelines.Today, Columbia through its Cyprus-basedhead office, provides full managementand crewing services for more than 330vessels including 130 ships in technicalmanagement.

Amongst Columbia's clients are some wellknown and reputable owners/operatorssuch as NYK Line, Tsakos Shipping &Trading, Cunard Line, Hapag Lloyd,

R ickmers Reederei and OverseasShipholding Group (OSG).

Columbia's corporate guidelines reflectthe company ' s commi tment to :

P rov ide h igh qual i ty se rv icesaccording to a quality assurancesystem in compliance with ISM andISO 9001.

Recognize that human resources bothon shore and on board are keyelements in a quality operation.

Place the highest priority on safety andsecurity of persons and protection ofproperty as well as conservation of theenvironment.

Listening and working with our staff - "High Seas Project".

Provide our services in a cost efficientway and adhere to sound principleswith respect to accounting and fundmanagement.

Continuous improvement

Columbia's fleet of managed vesselsincludes container ships, reefer vessels,bulk carriers, chemical tankers, producttankers, crude tankers, heavy lift vessels,ro/ro, general cargo vessels and luxuryliners.

Columbia's services are offered on amodular basis to suit each client's specificneeds. The two main service packagesa r e f u l l ( t e c h n i c a l a n d c r e w )m a n a g e m e n t a n d p a r t ( c r e w )management. Additionally, Columbiacovers a wide spectrum of activities inv a r i o u s r e l a t e d s e c t o r s o f t h eshipmanagement industry and offersshipowners a comprehensive andcomplete serv ice inc luding: sh ipoperations, chartering, sales & purchase,newbuilding supervision, and consultancyservices.

Columbia serves these sectors from itsheadquarters in Limassol, as well as fromsubsidiaries in Germany, Netherlands,Norway, Russia, Croatia, Singapore, Latvia,Philippines and Japan.

Columbia's headquarters at Limassol, Cyprus

Why Cyprus?

Columbia's growth and expansion overthe years is attributed to the uniquenessof Cyprus being the island's strategicposition at the crossroads of threecontinents, its comprehensive legalframework, double tax treaties regime,communication system, banking system,the infrastructure in general and last butnot least its highly educated labor force.A prominent factor in the spectaculardevelopment of the shipmanagementindustry in Cyprus is the government'spositive contribution/approach towardsa number of the sector's issues such aslegislation.

O v e r t h e y e a r s , C o l u m b i aShipmanagement Ltd has grown into oneof the world's largest independent shipmanagers and dynamic organizationswith more than 8.500 employeesworldwide.

Additional information can befound at: http://www.columbia.com.cy

[ [ Text provided byColumbia Shipmanagement Ltd ] ]

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Trust is an instrument which brings about a legal relationshipcreated by a person, known as settlor, when he places assetsunder the control of one or more trustees for the benefit of abeneficiary or beneficiaries or for a specific purpose.

A settlor cannot be a trustee and a beneficiary at the sametime.

Definition of an International Trust

A Trust in respect of which the settlor is not a permanent residentof Cyprus, no beneficiaries, other than a charitable institution,are permanent residents in Cyprus, the trust property does notinclude immovable property situated in Cyprus, and at least oneof the trustees is a permanent resident in Cyprus.

An International Trust may last up to one hundred years whilstCharitable or Purpose Trusts may continue in force without anytime limitation.

A trustee may be a natural person or a trustee company. Thelatter has the advantage of continuity. The Trustee companiesof K. Treppides & Co Limited may, on request, establish Trusts andact as Trustees thereof.

Usual types of Trusts

Fixed Trusts,

Charitable Trusts,

Purpose Trusts,

Protective Trusts and

Discretionary Trusts.

Taxation of International Trusts

The income and gains shall be exempt from all taxes imposed inCyprus and no estate duty shall be chargeable.

Reasons for setting up an International Trust in Cyprus

A Cyprus International Trust is definitely a vehicle to sophisticatedtax planning and in the following situations it can prove veryadvantageous:

an individual who has income arising overseas which hedoes not wish to remit to his country of permanentresidence can arrange for such income to be directed toa Trustee to be held on a Discretionary Trust, in accordancewith the Trust Deed and his Letter of Wishes;

an individual with assets outside his country of residenceensures that any exchange control restrictions in his countrywill not affect such assets;

an individual may wish to deprive himself of assets for fiscalor other reasons;

an individual who wishes to invest overseas but wishes toensure that profits and dividends received are not remitted

to his country of permanent residence;

an individual who wishes to keep the ownership of acompany anonymous and confidential can have theshares held by a Discretionary Trust;

an individual, through the use of a Trust, can arrange tobe inherited by persons who, due to the legislation of hiscountry, would otherwise by excluded from the inheritance;

an International Trust can be created for a purpose whichneed not necessar i ly be a charitable purpose;

the law applicable to a Cyprus International Trust can bechanged to a foreign law and an existing foreign Trustcan select Cyprus law;

disclosure of information is strictly prohibited, subject tosome exceptional cases where a court may orderdisclosure of such information;

the income and gains of a Cyprus International Trustderived outside Cyprus are exempt from all taxes andestate duty. There is at present only a fixed stamp dutyof Cyprus Pounds 250 payable on creation of the Trust

Trust Laws in Cyprus

The relevant laws of Cyprus, modelled on the English legal system,are the Official Trustees Law Cap.191 of 1912, the Trustee LawCap.193 of 1955 and the International Trusts Law No. 69(I) of 1992. The last law governs specifically the establishment and operationof trusts by non-residents of Cyprus for the benefit of non-residents.

Article provided by:

M r . K i k i s T r e p p i d e sM a n a g i n g D i r e c t o r

www.investincyprus.gov.cy 3

This column in the Foreign Investors Service Centre Newsletter has been introduced to accomodatearticles from professionals (accountants / lawyers) of the private sector. The representationsmade and the views or opinions expressed hereinabove are those of the author and are notnecessarily shared by the Republic of Cyprus or its organs or its officials. The Republic disclaimsany responsibility for any loss or damage incurred by any person and arising by reason of, orin connection to, any inaccuracy or omission or misstatement or misrepresentation containedtherein.

Margarita House, 15 Themistokli Dervi Street,P.O.Box 27142, 1642 Nicosia, Cyprus

Tel : +357 22 678944Fax: +357 22 679096

E-mai l : info@treppides.comWeb-s ite: www.treppides.com

C y p r u s : a Re l iab le Trus t Centre

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M r . C h r i s t o p h o r o s C h r i s t o p h iA d v o c a t e - M a n a g i n g P a r t n e r

www.investincyprus.gov.cy

This column in the Foreign Investors Service Centre Newsletter has been introduced to accomodatearticles from professionals (accountants / lawyers) of the private sector. The representationsmade and the views or opinions expressed hereinabove are those of the author and are notnecessarily shared by the Republic of Cyprus or its organs or its officials. The Republic disclaimsany responsibility for any loss or damage incurred by any person and arising by reason of, orin connection to, any inaccuracy or omission or misstatement or misrepresentation containedtherein.

1 Stas inos Ave., Mits i Bui lding 1, 3rd f loor, off ice 14P.O Box.22557, 1522, Nicosia, Cyprus

Tel . :+357 22 45 62 50, Fax:+357 22 66 22 15 Email: info@lawyer.com.cy, Web-site: http://www.lawyer.com.cy

I n t e l l e c t u a l P r o p e r t y i n C y p r u s

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As the products of human ingenuity and creativity have becomea major part of the world economy, and as we go through fast-paced technological and doctrinal changes, the importance ofintellectual property law (IP law) has rapidly increased. In thiscontext, Cyprus has always made a consistent effort to remainin line with international developments in IP law. It has ratified allmajor international IP law related treaties and harmonizeddomestic law with the acquis communautaire.

Copyright

Copyright includes literary and artistic works such as novels,poems and plays, films, musical works, artistic works such asdrawings, paintings, photographs and sculptures, andarchitectural designs. Rights related to copyright include thoseof performing artists in their performances, producers ofphonograms in their recordings, and those of broadcasters intheir radio and television programs.

Copyright was regulated by The Right of Intellectual PropertyLaw 59/76. Since 1976 the Law was amended several times butthe major law reforms took place in 2002 and 2004. The mainprovisions of Copyright Law are:

It affords protection to literary, dramatic, musical, artistic,scientif ic works, f i lms, and computer software. Theprotection subsists for the duration life of author plus 70years. Protection is also afforded to databases for 15 years,sound recordings and software for 50 years, andpublications of otherwise unpublished works for 25 years,

It gives recognition to neighbouring rights,

It provides for licensing and royalty payments,

It creates certain criminal offences and gives the right todamages.

Trademarks

Trademarks are "… any signs capable of being representedgraphically, particularly words, including personal names, designs,letters, numerals, the shape of goods, provided that such signsare capable of distinguishing goods and services of oneundertaking from those of other undertakings".

Successful registration of a trademark allows its proprietor themonopolistic exploitation of the mark for a total of 21 years. Theprincipal criteria for a sign to qualify as a trademark is that it mustbe capable of distinguishing the goods or services of the applicantfrom competing goods or services in the marketplace; providedthat no grounds (absolute or relative) for refusal of registrationof that mark exist.

A registered trade mark may be assigned on the transfer of abusiness; either with the entire or the remainder of the goodwillof the business. It goes without saying that a registered mark maybe assigned for all or some of the goods or services. For anassignment to be effective permission from the Registrar isnecessary.

Patents

In order for an invention to be patentable it has to be new, i.e.not form part of the state of the art, involve an inventive stepand be capable of industrial application.

The following categories are excluded:

discoveries, scientific theories or mathematical methods;aesthetic creations;schemes, rules or methods for performing mental acts, playinggames or carrying on economic activities, or software forcomputers;presentations of information.

The duration of protection is 20 years from the date of registeringthe application provided that the patentee pays the annualrenewal fee. The patent owner is free to sell his/her patent rightsbut the most usual form of exploitation of a patent is that oflicensing, which involves the payment of royalty fees.

Industrial Designs

The Law (The Legal Protection of Industrial Designs and ModelsLaw 4(I) of 2002 (amended by Law 170(I)/2003)) basically protectsindustrial objects or work of craftsmanship used or sold in industry.

An industrial design refers to the ornamental or aesthetic aspectof an article, not its technical features. It can be three-dimensionalsuch as a shape or surface, or two-dimensional such as patterns,lines or colors.

The criteria for eligibility for protection are esstentially that thedesign is "novel" (i.e. new) and it has an 'individual character'.The maximum duration of protection of a design is 25 years fromthe filing date of the application. The term of protection is for 5years, renewable 5 times.

Regulation of Intellectual Property

The regulation of intellectual property rests with the Departmentof the Registrar of Companies and Official Receiver, of the Ministryof Commerce, Industry and Tourism. The Office receivesapplications maintains the different registries and makes alladministrative decisions leading to the registration of anintellectual property right.

Article provided by:

Vo l u m e 4 . 2 0 0 6

The Foreign Investors Service Centre operates under the auspices of the Ministry of Commerce, Industry and Tourism, for foreign-based companies interested in investigating direct investment opportunities in Cyprus. It constitutes the central agency of information,support, and foreign investors' relations.

It plays a vital role in attracting FDIs in targeted industries, especially focusing on the development of high technology products, theenhancement of R&D and technology transfer; fields essential for the upgrading and the enrichment of production capacity andthe productive fabric's competitiveness.

The Foreign Investors Service Centre is a member of ANIMA (the Euro-Mediterranean Network of Investment Promotion Agencies),as well as WAIPA (the World Association of Investment Promotion Agencies).

Our activi t iesPromotion of Cyprus as an international business as well as an R&D centre

Provision of information to investors regarding financial, legal and taxation matters in implementing a project

Provision of advice to potential investors regarding the mosteffective way of making use of the package of the variousbenefits offered (e.g. Grant Schemes)

Liaising with various governmental departments and facilitatingthe process of granting the necessary approvals, required forimplementing a project

Provision of aftercare service aimed at anchoring existinginvestors and encouraging them to upgrade their activitiesin Cyprus

F o r e i g n I n v e s t o r s S e r v i c e C e n t r eM i n i s t r y o f C o m m e r c e , I n d u s t r y a n d T o u r i s m6 A n d r e a s A r a o u z o s S t r e e t ,1 4 2 1 N i c o s i a - C y p r u sT e l : + 3 5 7 2 2 8 6 7 2 3 9 / 8 6 7 1 4 3F a x : + 3 5 7 2 2 3 7 5 5 4 1E m a i l : i d s @ m c i t . g o v . c yWeb-s i te: h t t p : / / w w w . i n v e s t i n c y p r u s . g o v . c y

www.investincyprus.gov.cy

In light of the European Commission'saim for the creation of a sustainable co-operation platform dedicated topromoting foreign direct investments inthe Mediterranean, the Mediterraneaneconomic development agency'sstructure associating the bordering

countries and relying on a common economic developmentteam was officialised on 20 of November 2006 in Marseille.

The new Mediterranean economic development agency will bebased on the existing ANIMA team, as well as on the knowledgeand tools developed under the ANIMA project. The ANIMA projectis an initiative launched in 2002 within the framework of theEuropean Commission's MEDA programme, aiming to enhancethe attractiveness and competitiveness of the MEDA countries;which will terminate in June 2007.

The 20-member structure mainly comprises Euro- Mediterraneaninvestment promotion agencies, local communities andinternational organizations:

City of Marseille (France) Consorci de Promoció Comercial de Catalunya (COPCA, Spain)

Department of Investments (Morocco)Euroméditerranée (France)Foreign Investment Promotion Agency (FIPA, Tunis ia)General Authority for Investment and Free Zones (GAFI, Egypt)Invest in Bulgaria Agency (Bulgaria)Invest in France Agency (AFII, France)Investment Promotion Center, Ministry of Industry, Trade & Labor(IPC, Israel)Jordan Investment Board (JIB, Jordan)MaltaEnterprise (Malta)Mediterranean Union of Confederations of Companies (UMCE)

Foreign Investors Service Centre, Ministry of Commerce, Industryand Tourism (FISC, Cyprus)Mission for Regional Economic Development (MDER, France)National Agency for Investment Development (ANDI, Algeria)Palestinian Investment Promotion Agency (PIPA, PalestinianAuthority)Provence-Promotion (France)Region Provence-Alpes-Côte d'Azur (France)Team Côte d'Azur (France)World Association of Investment Promotion Agencies (WAIPA,United Nations)

www.animaweb.org

T h e U n i o n o f M e d i t e r r a n e a nConfederations of Enterprises (UMCE),co-organised with the Confederation of Spanish Employer Organisations(CEOE), and the Confederation ofEmployer Organ i sat ions o f theAutonomous Region of Valencia

(CIERVAL) " the 2nd Mediterranean Competitiveness DayMedEspaña " on February 27th and 28th 2007.

The central topic of this competitiveness day was " the Economicand Business Situation in the Mediterranean Countries ". It aimedat reinforcing economic integration in the region as well asstrengthening the interest if Spanish enterprises towards theirMediterranean sisters. Eleven South Mediterranean countries werepresent: Algeria, Cyprus, Egypt, Jordan, Lebanon, Malta, Morocco,the Palestinian Authorities, Syria, Tunisia and Turkey.

The Cyprus Employers & Industrialists Federation gave a speachon the business and economic environment in Cyprus, while theForeign Investors Service Centre gave a presentation on theinvestment advantages and opportunities, Cyprus offers topotential investors.

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