Cyprus establishes framework for social enterprises

The Registrar of Cooperative Societies and Social Enterprises, Kypros Protopapas, announced that three social enterprises have officially registered in Cyprus, with two more applications pending. The announcement followed a press conference in Nicosia regarding the 2023 legislative framework for social entrepreneurship and available government grants. Marinos Aniftos, head of the Unit for the Promotion of the Cooperative Movement and Social Entrepreneurship, noted that the law defines two types of entities: general-purpose enterprises and integration enterprises. General-purpose enterprises focus on social, cultural, or environmental goals, while integration enterprises must employ at least 10% of staff with disabilities and 30% from vulnerable groups. Registered companies are required to derive at least 70% of their revenue from goods or services. Profit reinvestment requirements are set at 80% for general-purpose entities and 40% for integration enterprises. Additionally, regulations limit salary inequality, capping the highest salary at four times the lowest paid employee's wage.