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Public Sector Hiring Reforms Gain Union Support In Cyprus

Modernization Efforts Gain Union Approval

Civil service union Pasydy has endorsed three draft laws submitted to parliament to reform public sector recruitment. Union representatives noted that several previously proposed recommendations have been incorporated, particularly those aimed at updating procedures and addressing long-standing inefficiencies.

Streamlined Recruitment Process

Finance Minister Makis Keravnos is leading the reform effort, with a focus on reducing the time required to secure permanent public sector positions. Stratis Mattheou, general secretary of Pasydy, stated that the proposed changes aim to align recruitment more closely with departmental needs. Candidates will receive clearer information about available roles and requirements before sitting examinations, which often involve additional costs.

Addressing Systemic Shortcomings

Existing recruitment procedures have been widely criticized for inefficiency and lack of transparency. Applicants have frequently faced uncertainty regarding the positions linked to examinations, sometimes incurring unnecessary expenses due to misaligned applications. Concerns have also been raised by departmental leadership regarding delays and administrative complexity.


Key Legislative Changes

Three bills form the core of the reform package: the Evaluation of Candidates for Appointment to the Public Service Law of 2026, the Public Service (Amendment) Law of 2026, and the Evaluation of Candidates for Appointment to the Public Service (Temporary Provisions) Law of 2026.

Approved by the cabinet on April 8 and submitted to parliament, the proposals introduce several structural changes:

  • Transition from pre-announced to post-announced written examinations, allowing candidates to identify vacancies before preparing
  • Publication of vacancies within the first two months of each year to accelerate recruitment timelines
  • Removal of the annual requirement to submit lists of positions requiring written exams, with authority shifting to the Public Service Commission
  • Increased weighting of departmental head evaluations during the oral examination stage

Ongoing Commitment To Improvement

Pasydy indicated it will continue reviewing the proposals and may submit further recommendations during parliamentary discussions. Reforms are expected to improve efficiency, reduce administrative delays, and create a more transparent and candidate-focused recruitment system.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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