Company Registration in Cyprus
Cyprus has become one of the most favorite jurisdictions in which entrepreneurs and enterprises try to incorporate a company for various reasons, such as being at an advantageous geographical position within the European Union. All the procedures concerning company incorporation are pretty straightforward and easy to go through, making the country very appealing to those willing to conduct business in an environment which is friendly to business and with favorable taxation and strong law protection.
This may be in the form of: Ltd, a public company, or branch of an overseas company, among others.
- Name of the company: Most developed jurisdictions, including Cyprus, have naming requirements. The name of the company must also be unique and distinctive. The proposed name of your firm should be submitted to the Registrar of Companies for approval and reservation in advance.
- Memorandum and Articles of Association: These will entail the preparation of the Memorandum and Articles of Association, where the objects of the company, structure, and internal regulations will be outlined. These are a very important part of the incorporation documents.
- At least one director and a company secretary must be appointed. A director could either be a natural person or a corporate body. It is imperative that at least one of the directors must have residence within Cyprus.
- Determine the share capital of the company. Cyprus allows for flexibility in terms of the minimum share capital requirement, and shares can be denominated in any currency.
- Establish a registered office in Cyprus, where official documents and notices can be served. This office is crucial for compliance with legal requirements.
- Obtain a Tax Identification Number for the company and register for VAT, if applicable. Cyprus maintains an appealing corporate income tax regime, probably with one of the lowest effective corporate income tax rates in the European Union.
- Below are the steps a foreign business should take in order to establish a presence in Cyprus, together with the actions required to activate that representation:
- The Memorandum and Articles of Association, together with particulars of the directors and secretary and all other relevant documents, are filed with the Registrar of Companies in Cyprus.
- Once this is in order and the application is approved, the Registrar of Companies will issue a Certificate of Incorporation. It is this certificate which legally registers the company and authorizes the commencement of its operation.
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COMPANY FORMATION IN CYPRUS |
1, 800 EUR |
- Company Registration
- Payment of State Duty
- Legal address for 1 year
- Share Certificate
- Company Seal
- Company Secretary
- Completely Remotely
Our services ensure a smooth process for company registration in Cyprus, a jurisdiction favourably recognized internationally. At the moment it is possible to open a company in Cyprus, without fear of the latter on the international market, as Cyprus is not offshore, so does not fall into the black list of most countries. All Cypriot companies are officially registered with the State and there is a requirement to hold mandatory annual shareholders’ meetings, to submit financial statements to supervisory bodies and to audit.
Partner with us to open a company in Cyprus swiftly and securely in this advantageous business landscape.
Corporate services in Cyprus
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Advantages
Worldwide recognition of the jurisdiction
Confidentiality to the beneficiary of the company
One of the lowest income tax in Europe
Access to the European Economic Area (EEA)
Advantages of opening a company in Cyprus for international entrepreneurs include possibly the best international reputation, especially compared to the classic forms of offshore with similar taxation;
- have a double taxation protection agreement with more than 60 states of the world;
- tax rates are reduced for certain activities;
- financial statements correspond to applicable international standards.
- Does not provide for tax payments on external and internal dividends, income from securities sales, capital gains.
- There are favourable conditions for the registration of holdings due to the loyal control of state authorities, there is no tax on consolidation.
- Low maintenance costs compared with most EU countries.
- Simple company registration without too much bureaucracy.
- The possibility of using a nominal service is allowed.
- The transfer of the firm’s losses can be carried forward for new tax years until their complete offset without adverse effects on the firm and the owners.
One of the most loyal tax policies within the whole European Union is applied in Cyprus. The owners of the Cyprus company get such undeniable advantages as zero tax on transactions with securities, revenues from foreign subsidiaries and subsidiaries, conversion of real estate into possession.
The Government of Cyprus has made it possible for international entrepreneurs to establish business in Cyprus and live freely both in Cyprus and abroad.
Company registration in Cyprus – a number of undeniable advantages:
- It is possible to run a business entirely remotely with minimal personal involvement and at low costs compared to other EU countries;
- No minimum capital requirements;
- Company registration documents are available in English;
- Within 2-3 business days, you can obtain the number of the VAT payer;
- It is possible to involve a nominee director and nominee shareholder, which provides maximum possible confidentiality for a beneficiary of the company;
- Buying a ready-made company allows you to start operations in a short time;
- Possibility of restoration: Ltd in Cyprus in case of closure can be restored during the following 20 years;
- Liquidation of the business is done upon an owner’s request and with a minimum set of procedures;
- The country is not on the OECD blacklist, which protects the Cyprus company from difficulties in cooperating with other foreign companies.
The main reasons to register a business in Cyprus:
- Income tax – 12.5%, one of the lowest in Europe;
- With the mass implementation of online services, almost all registration procedures can be carried out remotely, including the management of the company and its bank account;
- Not obliged to be a resident of Cyprus – a foreigner is allowed to open a company in Cyprus;
- Documents, certificates, and certificates are allowed to be submitted in English;
- After establishing your company, you can open both corporate and personal bank accounts;
- There are no strict requirements concerning the size of the authorized capital of the company;
- Service to the company is much cheaper than in other EU countries.
Getting a VAT number in Cyprus
It will also be necessary to further register the new company with the tax office as a VAT payer. This can be done in person or by proxy. In order to pay social contributions, it will also be necessary to register the company with the Ministry of Labour of Cyprus.
More information about getting the VAT number for the Cyprus company is available here.
Advantages of business registration in Cyprus
Cyprus is a member of the European Economic Area; thus, it will be an ideal jurisdiction when registering your company for further cooperation with other EU countries. The state is famous for its preferential tax regime and a simplified procedure of registration of the company, the possibility of quickly obtaining a VAT number for interaction with European partners, and the procedure for obtaining residence permits for citizens of third countries. Cyprus enjoys high international prestige and will be suitable for a lot of entrepreneurs who want to enter the European market.
Cyprus has an agreement to avoid double taxation with most European countries. Running the business with a Cyprus-based company is very convenient.
Registration of the company in Cyprus is quite simple and does not take long, it takes from 7 days to register, and the whole procedure can be carried out remotely.
Since Cyprus is part of the European Union, the company registered in Cyprus is considered European, which positively affects the reputation of your business.
Cyprus is a comfortable country for business and living. There is a large international community, education and health care available in English.
Profit tax -12.5% – one of the lowest tax rates in Europe. Income from dividends and securities transactions are not subject to taxation.
There are no clear regulations regarding the size of the authorized capital of the company, as it depends on the specifics of the work of each company.
The official languages of Cyprus are Turkish and Greek, but English is widely used in the corporate environment. All company documents can be provided in English.
The Government is trying to create a comfortable environment not only for business, but also for comfortable living on the island for non-residents of the country.
General information on Cyprus
Capital |
Population |
Currency |
Languages |
Area |
| Nicosia | 1,229,000 (838,897 southern Cyprus) |
Euro | Greek and English | 9.3 thousand km2 |
Activity of a commercial organization in Cyprus is carried out according to the Law «About Companies». In the Republic of Cyprus, the law is based on British law, with some amendments, that greatly simplifies the procedure of registration and business for the international entrepreneurs.Cyprus serves as a gateway between Europe, the Middle East, and Asia, making it an ideal location for international business. Cyprus offers a competitive and transparent tax system, including low corporate tax rates, tax exemptions, and double taxation treaties with numerous countries.
As a member of the European Union, companies incorporated in Cyprus enjoy the benefits of access to the EU single market and various business-friendly regulations.
Cyprus has a well-established legal framework based on English common law principles, providing a stable and predictable business environment.
Cyprus boasts a well-educated and multilingual workforce, contributing to a dynamic and versatile business environment.
In summary, incorporating a company in Cyprus presents an opportunity to operate within a favourable business climate that combines strategic geographical positioning, a robust legal framework, and advantageous tax regulations. The process is efficient, and the resulting corporate entity can leverage the benefits of Cyprus’ EU membership for international business activities.
Key Advantages of Initiating a Business in Cyprus:
- EU Membership: Cyprus’s membership in the European Union contributes to enabling businesses to reduce exchange rate risks and enjoy monetary transparency.
- Treaties on Double Taxation: Cyprus has signed treaties with over 50 countries to avoid double taxation for foreign companies who have investments within the country. This, therefore, makes quite an attractive tax regime that comprises many tax incentives.
- Low Corporate Tax: The corporate tax in Cyprus stands at 12.5%, one of the lowest within Europe. This will act as an added advantage to starting a business venture in Cyprus due to a favorable tax environment.
In Cyprus, the corporations are obligated to pay only 12.5% of their revenues to the state, showing one of the lowest corporate tax rates in Europe. Taxation on sale of securities or dividends, with some exemptions in respect of capital gains, is also exempt for companies. The territorial system of taxation includes revenues derived only locally. Setting up a company in Cyprus could help any business considerably in increasing its after-tax profits through double taxation agreements.
Cyprus exercises less administrative control over companies compared to mainland Europe. Additionally, companies set up within Cyprus have a better and stronger impact and more credibility outside its borders. This allows investors to set up headquarters in Cyprus and operate throughout Europe without facing higher licensing hurdles. Cyprus is attentive to local and international business entities by providing favorable tax incentives and discounts promoted by the state.
Regarding the question of business ventures in Cyprus, great possibilities for the entrepreneurship exist – particularly for banking and financial consultancy businesses. During the last two decades, Cyprus was among the favorite countries chosen by international investors, while recently there is an astonishing increase of investments that flow through Cyprus into Asia- especially China and India, South America, and the Middle East region. While not on par with banking, shipping in Cyprus enjoys the existence of over 130 companies and carrying Europe’s third-largest and the world’s eleventh-largest merchant fleet with up to 7% of the island’s yearly GDP. Similarly, insurance in Cyprus is very much in demand both from private and public entities and enjoys a very thriving sector.
Things to Consider When Setting Up a Business in Cyprus
When considering the Cyprus business, foreign entrepreneurs should pay attention, among others, to the following:
- Different formalities for various company types.
- Legal or registered physical addresses in Cyprus are required; virtual offices are acceptable.
- The reservation and registration of the name.
- Registration for tax and employment purposes required within a short period from the date of incorporation.
- Special licenses and permissions also represent certain requirements, put forward by the relevant authorities.
One of the most common questions refers to the costs of setting up a business in Cyprus. Luckily, these costs are relatively low and some of the procedures are free of charge. The fixed costs of setting up a company in Cyprus include:
- Company incorporation fees
- Annual maintenance fees
- Accounting fees
Other frequently contracted services for foreign investors opening a company in Cyprus are nominee shareholder and director, as well as company secretary services, since local directorships are required by the law.
There are five types of company structures available for foreign investors to conduct business in Cyprus:
| Company Type | Details |
|---|---|
| Private Limited Liability Company by Shares | This is the most common structure and there is no minimum share capital requirement, with limited liability for its members. From 1 to 50, the number of non-transferable shareholders may vary. |
| Public Limited Liability Company | The minimum capital is 25,629 EUR; shares in this case are transferable plus a minimum of 7 shareholders. |
| Limited Company by Guarantee without Share Capital | This is usually set up for charitable or non-commercial purposes. Each participant can decide on their limit of responsibility, which needs to be agreed upon before participation. |
| Limited Liability Company | This is that type of structure that is defined by the memorandum of association and has a feature allowing it to limit the liability of its members. It can be either private or public. |
| Variable Capital Investment Company | Even though this setup holds a variable value instead of a nominal value, its initial capital needs to be between 50,000 and 300,000 EUR. The number of members for a private business is from 1 to 50, and for a public firm, it has to be at least one member. |
The Republic of Cyprus is the former British colony. Nowadays, it is a full member of the European Union; it has a developed economy, and there is a possibility for simple business registration. Though Greek and Turkish are recognized as official languages, nevertheless, English is widely spoken, and from 2008, the official currency of Cyprus is euro. All this simplifies the conduct of business for international entrepreneurs.
Nowadays, due to capital attraction from EU, Asia, Middle East, Russia, and South America, investments are actively made here. Here is also the largest transport hub, which provides great volume of goods and commodities for all kinds of purposes.
What types of companies does Cyprus have?
Cyprus is one of the leading financial centers in the world, and accordingly, it provides a number of forms of legal entities to conduct business, thus inviting investors and entrepreneurs from literally everywhere. There exist various kinds of companies in Cyprus, which have certain distinguishing features, advantages, and purposes. Below follows a detailed review of the principal types of Cypriot companies, their features, and requirements for incorporation.
Private Limited Company (Ltd)
The most common type of company in Cyprus, which is preferred for small and medium-sized businesses. It is distinguished by the limited liability of its shareholders within the limits of their contribution to the authorized capital of the company. In addition, a private limited liability company needs to include the word “Limited” or the abbreviation “Ltd” in its name. Key Characteristics:
- The maximum number of shareholders is restricted to 50.
- The sale of shares on the stock market is not allowed.
- No minimum statutory capital is set.
Public Limited Company
Cypriot public stock companies can provide for the free sale of shares to anyone and trading on the exchange. This form of ownership is preferred by large enterprises only, which need serious investments. Requirements:
- Minimum authorized capital value is 25,629 euros.
- Obligatory registration of shares with the Cyprus Securities and Exchange Commission.
- There is no limit to the number of shareholders.
Partnership Company
A partnership company in Cyprus can be established as a General Partnership or as a Limited Partnership. In a general partnership, all the partners are subject to unlimited liability, but in a limited partnership, one or more of the partners have limited liability while at least one partner has unlimited liability. Partnerships are intended for companies practicing their profession like legal or accounting firms.
Offshore Company
Although the term “offshore company” is not used in the legislation of Cyprus, this country offers appealing tax conditions to foreign investors, and thus it is a popular place for the registration of companies operating outside of Cyprus. Such a company can enjoy low tax rates, including one of the lowest corporate tax rates in Europe.
Branch of a Foreign Company
Foreign companies can open their branches in Cyprus but still keep a legal entity incorporated in some other jurisdiction. Such a branch shall be registered with the Cyprus Commercial Register and will be subject to the same tax requirements as local companies.
European Company (Societas Europaea, SE)
A type of company that gives one permission to operate under one European brand in any country of the European Union. SE is a public joint-stock company with at least 120,000 euros of minimum authorized capital.
Cyprus offers a range of business-carrying forms for every taste and strategy of the investor. The choice of organization type depends on many factors, such as scale of operation, ownership structure, tax planning, and investment objectives. Whatever type is chosen, significant studying of the local legislation is called for, together with expert advice, so that all requirements are met and the processes of business are optimized.
Further details about the tax rates applicable to Cypriot companies are divided by additional categorization and remarks:
| Tax Category | Rate | Note |
|---|---|---|
| Corporate Income Tax | 12.5% | Applies to income earned worldwide by resident companies |
| Value Added Tax (VAT) | 19% | Standard rate, with reduced rates for certain goods and services |
| Personal Income Tax | Up to 35% | Progressive scale depending on income, with a maximum rate of 35% |
| Social Tax | Up to 15.6% | Includes contributions to health insurance, social security, etc., from the employer and employee |
| Tax on Dividends | 0% Dividend Tax | There is no withholding tax on dividends paid to non-residents; resident dividends may be subject to contributions to the Defense Fund |
| Average Salary in 2023 | Information not provided | Average salary data is specific and may vary greatly depending on source and sector |
How large is the authorized capital of the Company in Cyprus?
One of the corner points in the process of a company’s registration and further operation in Cyprus is the size of its authorized capital. Authorized capital means the sum of funds or assets that shareholders or founders contributed to the company at the time of its creation. Depending on the type of company, Cyprus legislation sets different requirements concerning the minimum amount of authorized capital.
Private Limited Company
The Cyprus legislation does not stipulate the minimum authorized capital in the case of private limited liability companies, leaving the founders free to decide upon what is necessary as a starting point. Without strict requirements, the usual range for the authorized capital is from 1,000 to 10,000 euros in cash or other forms.
Public Limited Company
In the case of a public joint-stock company of Cyprus, the minimum authorized capital is 25,629 euros. The authorized capital has to be fully subscribed by the shareholders during the incorporation of the company. In addition to that, at least 25% of the subscribed capital must be paid.
Partnership Company
In this case of general and limited partnerships in Cyprus, legislation also does not provide for minimum authorized capital. The founders of the partnership have a right to independently set up a capital volume needed for starting and keeping the partnership’s activities.
European Company (Societas Europaea, SE)
If a European company is to be registered in Cyprus, the minimum amount of its authorized capital should be 120,000 euros. This is correspondent to the pan-European standards for this kind of legal body.
Offshore Companies
Although the Cypriot legislation does not use the term “offshore company,” the exemption regarding the size of the authorized capital also applies to foreign companies incorporated in Cyprus but conducting their business activities mostly abroad. The authorized capital, in turn, depends on the discretion of the founders of the company and is specified in accordance with the peculiarities and scale of the enterprise activity.
The size of the authorized capital of a Cypriot company also differs depending on the type of legal entity and specifics of its activities. The absence of tough minimum share capital requirements in private companies and partnerships allows more freedom for entrepreneurs and investors. At the same time, in cases of public joint-stock companies and European companies, there are certain minimum amounts that can guarantee a corresponding level of financial stability and reliability. Anyway, it is desirable that the decision on the size of the authorized capital is corresponding to the business plan of a company and its long-term goals.
Should a company in Cyprus have a local director?
In Cyprus, there is no statutory requirement for each and every company to have at least one local director. Nevertheless, having at least one director resident in Cyprus may provide a number of tax and operational benefits. This is due to the tests for tax residency and effective management of the company, which impact on the ability of the company to access local tax benefits and double taxation agreements.
| Aspect | Details |
|---|---|
| Tax Residency | Cyprus tax residency depends on the company’s “management and control” being based in Cyprus. Having a local director to conduct board meetings and make strategic decisions in Cyprus enhances compliance with this criterion. |
| Operational Advantages | A local director facilitates operational processes such as opening bank accounts and liaising with local regulators and tax authorities. Their knowledge of Cyprus law and business practices ensures efficient management of legal, tax, and administrative matters. |
| Compliance and Reputation | Having local directors enhances trust with banks, partners, and regulators. It simplifies due diligence processes and improves the company’s reputation as a reliable business partner in the era of corporate transparency. |
| Exceptions and Specific Requirements | For certain licensed activities like financial services and gambling, having at least one qualified local director is mandatory. Specific requirements for such directors are set by regulatory authorities. |
Although the law does not provide for the compulsory presence of a local director in a Cypriot company, this could make very important contributions to the management of the company, improving its tax efficiency and enhancing its advantages for both local and international operations. The choice of a local director should become a strategic one, connected with the specifics of the activity of the company, its objectives, and demands against corporate governance.
What is the amount of state fees when establishing a company in Cyprus?
When establishing a company in Cyprus, it is necessary to take into account not only legal aspects and requirements for the authorized capital, but also the amount of state fees, which are mandatory payments for registration and further business operations. Government fees and charges vary depending on the type of company and the intended activity. In this article, we will outline the main kinds of state fees for establishing a company in Cyprus to give entrepreneurs an idea of what costs will arise.
Registration Fee
One of the very first payments founders need to make while registering a company in Cyprus is the registration fee. The fee is paid to the Department of Registrar of Companies and Official Receiver. The price of that registration fee, however, is dependent on the legal form of the company and may therefore differ. At the time of writing, the average registration fee for a private limited liability company has been about 105 euros. It’s advisable, however, to check with the Companies House Register for more complete accuracy since these fees change.
Filing Fee
Apart from the registration fee, there are also different types of document-related fees that a company has to pay: for example, articles of association and constituent documents of the company. The amount of these document fees also varies with regard to the nature of the documents and the volume of information contained therein. For example, there may be a different type of fee charged for filing the charter and registration documents.
Annual Fee
All the companies that have been registered in Cyprus, no matter for what kind of activities or projects, have to pay the annual fee so that they could be considered active and their status functional. It is roughly 350 euros per year. It’s a fixed fee, independent of the size of the company or the scope of its activities.
Additional Fees
Depending on the nature of the business and the various licensing terms, there may be the need for the company to pay added state fees and charges. For instance, further compensation may be necessary for a specialized license in areas like financial services, gambling, or even tourism.
Besides the fee for the registering itself, setting up a company in Cyprus includes several types of state fees and charges payable, right from the registration fee to the annual fees for maintaining the status of the company. Understanding and planning for these costs well in advance is a part of successfully starting and running a business in Cyprus. Entrepreneurs are highly recommended to study all requirements in detail and seek professional advice from legal and accounting services in Cyprus, if necessary.
What is the annual cost of servicing a company in Cyprus?
The annual cost of servicing a company in Cyprus should be included in the financial planning of any entrepreneur and any international company that would opt for this island for business. Cyprus attracts the business community because of its favorable tax system, strategic location, and high level of privacy. Meanwhile, one needs to provide some routine but necessary payments and contributions if they want the company to keep its operational and legal status. In the following article, we will discuss in detail the main items of the annual cost for servicing a company in Cyprus.
Annual State Fee
All the companies registered in Cyprus are obliged to pay the annual state fee at the rate of approximately 350 euros. It is fixed and does not depend on the size of the enterprise or volume of assets.
Accounting Services
Under the Cyprus law, companies should be accounted for and their financial statements prepared in compliance with IFRS. The cost of accounting services will depend on the volume and complexity of the activities of a company. On average, annual accounting can cost a company from 1,500 up to 5,000 euros or even more.
Audit Services
Most firms are obliged to audit their financial statements, and the price for such a service also depends on the size of the business and the complexity of its activities. The average cost of an audit starts from 2,500 euros and may rise substantially depending on the specifics of the company’s activities.
Legal Services
Legal services will be needed for advice on corporate governance, tax planning, and compliance with various regulatory requirements. The cost of legal services varies depending on the depth of work needed. Annual subscription to legal consultation can start from a few thousand euros.
Registration and Licensing Fees
Whichever the kind of business that the company will perform, depending on that there can be other kinds of registration or licensing fees. For example, if a company is a participant in financial activities, gambling, or investment services, then it has to be licensed appropriately; this can be very expensive.
Virtual Office and Secretarial Services
Many companies use the services of a virtual office and a corporate secretary, thanks to which they receive a valid legal address in Cyprus, as well as guaranteed compliance with corporate requirements. Having such services can cost from 500 to 2,000 euros per year.
The annual cost of servicing a company in Cyprus depends on many factors: the size and specifics of the company’s business, and also the selected support services. All the possible expenses are worth noticing for proper planning of the establishment and maintenance budget of a company in Cyprus for its successful and efficient operation. All these benefits could be derived from business in this jurisdiction by consulting professional consultants who can optimize your expenses in respect of the same.
What are the most important advantages of setting up a company in Cyprus?
Establishment of a company in Cyprus has several key advantages that make the island an internationally attractive entrepreneur and investor destination. These include tax incentives, but also the business-friendly environment supported by a stable economy and a high quality of life. Let’s see in more detail below the main advantages of establishing a company in Cyprus.
| Advantage | Details |
|---|---|
| Attractive Taxation System | Cyprus offers one of the lowest corporate tax rates in the EU at 12.5%. Additionally, it provides tax exemptions on dividends and interest, and capital gains tax is only applied to real estate located in Cyprus. Restructuring companies under favorable conditions is also possible. |
| Double Taxation | Cyprus has double taxation treaties with over 60 countries, reducing the tax burden for international companies and investors, thus facilitating better tax planning. |
| Strategic Geographical Location | Located at the crossroads of Europe, Asia, and Africa, Cyprus offers unique trade and logistics opportunities, making it an ideal location for international and export-focused businesses. |
| Doing Business in English | English is widely used for business communication and legal documentation, simplifying business operations for foreign investors. |
| Advanced Infrastructure | Cyprus boasts modern telecommunications, a well-developed transport network, and high-quality banking services, making it an ideal environment for business growth, especially for high-tech companies. |
| European Jurisdiction | As a member of the European Union, Cyprus offers companies access to the EU single market with strong legal protection and stability. |
| Qualified Personnel | Cyprus has a well-educated and multilingual workforce, making it an attractive destination for hiring talented professionals. |
Setting up business in Cyprus is very advantageous, having in view the low tax rate, the strategic location, ease of doing business, and access to qualified personnel. All these factors combined position Cyprus as one of the most attractive destinations for international business both within Europe and worldwide.
What are the ways of establishment of a company in Cyprus?
Establishment of a company in Cyprus is a strategic step chosen by many entrepreneurs and international corporations looking to take advantage of the jurisdiction of Cyprus. Cyprus offers an attractive tax system, strategic geographical location, and access to European Union markets. In this respect, there are several ways of establishing a company in Cyprus; each of them has its own characteristics and requirements. In this article, we will look at the main ways to establish a company in Cyprus and the key aspects that you should pay attention to.
Registration of a new company
This is the most common way of setting up a company in Cyprus. The procedure involves choosing a company name, preparing and submitting constituent documents to the Cyprus Register of Companies. To register a company, it is also necessary to appoint directors, a secretary, and indicate the company’s legal address in Cyprus.
Purchase of a ready-made company
Another variant of business development in Cyprus is buying an already-registered company that was not active—the so-called “shelf” company. In this case, it would be possible to reduce the time of all the registration procedures considerably and to start your business as soon as possible. Purchasing a “shelf” company requires a very serious check of the history of the company to make sure there are no debts and obligations.
Opening of a branch or representative office of a foreign company
Foreign companies can also extend their business activities to Cyprus by the establishment of a branch or representative office. These organizations need to be registered in the Register of Companies and should carry out their activities in accordance with the laws of Cyprus, periodically informing the head office about the course of business. The representative offices and branches can perform commercial activities and will be subject to taxation in Cyprus if the profit corresponds to Cyprus corporate law.
Registration of partnership
In Cyprus, the two main kinds of partnerships exist: a general partnership and a limited partnership. Both types mean uniting two or more persons to conduct for-profit business, but the way of sharing mechanisms differs in responsibility, as does the management. Registration of the partnership also takes place through the Company Register.
Register as a self-employed entrepreneur
It is possible for individual entrepreneurs to be registered as a self-employed in Cyprus. This is the perfect option in cases when freelancers, consultants, and other professionals provide professional services. The self-employed entrepreneurs must register with the tax service and make social contributions.
Main aspects of Company Formation in Cyprus
Whatever form of incorporation, it is worth noting that some effective planning regarding legal review and tax planning, qualified employees’ selection, has to be considered before the incorporation exercise takes place. Further, accounting requirements, audit requirements, and regulatory requirements will have to be studied.
Setting up a company in Cyprus offers serious advantages for tax optimization, opening international markets, and developing business infrastructure of the highest standard. However, any kind of successful start-up and business development requires good knowledge of local laws and regulations.
Do I need to have a registered office in Cyprus?
In this respect, the demand for a legal address in establishment of a company in Cyprus is one of the hottest topics among multiple entrepreneurs and international companies wanting to take the Cyprus jurisdiction for benefits. The legal address is not only a compulsory requirement of Cyprus legislation for the registration and operation of a company but also plays a considerable role in operational activities and tax planning for the business. The focus in this article is on issues relating to having a legal address in Cyprus and how important it really is in terms of the functionality of a business.
Legal requirements
According to Cyprus corporate law, every company registered in Cyprus has to have its officially registered legal address within the State. Simultaneously, it must be the official post address for any correspondence received and given through government departments, such as the Register of Companies and tax authorities. The address of a legal office must be written in constituent documents of the company upon registration and can be obtained by any person having access to the official register.
Tax considerations
It’s very important if the legal address is in Cyprus. Determination of tax residence of the company constitutes its legal address. With the aim to be assessed as tax resident of Cyprus and accordingly apply all the benefits of the Cyprus tax system—low corporate tax rate and agreements for the avoidance of double taxation—it should hold the status of a tax resident. One of the criteria for tax residency is the management and control of a company, carried out from the territory of Cyprus, where the legal address plays a key role.
Professional representation Office
A registered office in Cyprus may also be used as proof of the serious intentions and commitment of the company to carry on legal business in the jurisdiction. This particularly relates to establishing business relations with banks, investors, and partners who may require proof of the company’s physical presence on the island.
Options for getting a legal address
Entities can provide a legal address in Cyprus by several means:
- Office/commerce renting that will serve as the permanent legal address of the firm.
- Virtual office services, offered by numerous legal and consulting firms in Cyprus, represent a convenient and affordable option for companies without a need for physical office space.
- The address of a registered agent or legal representative of the firm may be used.
An officially registered office in Cyprus conveys the relevant legal and tax functions, but it mainly points to the company’s engagement with due respect to local legislation and policy participation in the economy of Cyprus. A registered office is basic for a company that wants to operate its business in Cyprus. In this respect, such assistance given to a company leads to its successful development and perfects its taxable position.
Can I open a branch of a foreign company in Cyprus?
Establishment of a branch of a foreign company in Cyprus is one of the most popular strategies pursued by many international businesses that try to expand their European presence. Certainly, Cyprus enjoys favorable tax conditions, as well as a stable economy and a high level of business infrastructure, which creates an attractive place for doing business. The article will discuss in detail how to open a branch of a foreign company in Cyprus and consider the most important aspects to be observed.
Why Cyprus?
Cyprus has several advantages to offer foreign investors, such as a low corporate tax rate—one of the lowest in Europe, which positions Cyprus as one of the most attractive destinations for international business.
- Double tax avoidance: Cyprus has concluded treaties for the avoidance of double taxation with over 60 countries, whereby foreign-sourced income can be effectively taxed.
- Strategic location: Located at the meeting point of Europe, Asia, and Africa, Cyprus is the perfect access to a host of markets.
- European integration: Being a member of the European Union, Cyprus offers the access to the market of the EU and an opportunity to carry out business activity within the framework of predictable legal environment.
How to open a branch in Cyprus
The procedure of opening a branch in Cyprus is possible to highlight on some key stages:
- Drafting and filing of documents: This means the preparation and submission of certain documents required for the registration of the branch in Cyprus, such as the founding documents of the parent company and the resolution concerning the establishment of a branch.
- Opening a bank account: The branch shall open a bank account in Cyprus, through which the financial activities of the company will be carried out.
- Tax registration: The branch should be registered with the Tax Authority of Cyprus and obtain a tax number.
- Social Insurance: If the branch wants to employ staff in Cyprus, registration into the system of social insurance is required.
Key points for bookkeeping
- Legal status: The branch is not considered a separate legal entity from the parent company, and thus the latter fully assumes liability for anything the branch does.
- Tax planning: Great attention should be paid to this issue in the tax planning of the branch, in view of the local tax legislation and the agreements for avoidance of double taxation.
- Compliance with local legislation: The Branch will be obliged to comply with all local legislation, including labor and data protection regulations.
Opening a branch of a foreign company in Cyprus can offer significant business opportunities but requires careful planning and preparation. It is highly recommended to consult local legal and tax experts to ensure everything is taken into consideration and optimized for operations in Cyprus.
Can a foreigner open companies in Cyprus?
Opening a company in Cyprus by foreigners has become very popular among many entrepreneurs and businessmen from all over the world due to favorable tax treatment on the island, strategic location at the crossroads of three continents, and its membership in the European Union. In the article below, we will closely analyze the process of registering a company by foreigners in Cyprus, outline the main features, and highlight the main requirements of such a process.
Advantages of establishing a company in Cyprus
Before proceeding with the registration procedure, let’s point out the advantages of doing business in Cyprus:
- Predictable tax regime: One of the lowest in the EU, namely 12.5%.
- Double taxation system: Cyprus has concluded agreements on the prevention of double taxation with more than 60 countries, which reduces the tax burden on companies.
- Strategic location: Convenient geographical location for access to the markets of Europe, the Middle East, and North Africa.
- A legal system based on English law: A transparent and understandable legal system based on the principles of English law.
How a foreigner can open a company in Cyprus
| Step | Details |
|---|---|
| Choose a company name | The first thing is to select a unique name for the company that won’t coincide with the names of already existing companies in Cyprus. Verification can be done through the Company Registrar. |
| Preparation and submission of documents | In order to register a company, you will need to prepare and submit a number of documents, including: Memorandum of Association – the company’s Charter – and the Articles of Association, outlining the purposes and regulations of doing business. Information about the company’s directors and shareholders. Verification of your office address in Cyprus. |
| Company registration | Once all the documents are submitted, registration is carried out by the Registrar of Companies, and it typically takes a few weeks. |
| Opening a bank account | To conduct business in Cyprus, it is required that you open a corporate bank account. Banks in Cyprus require personal appearance for account opening, a set of corporate documents, and information about the beneficial owners. |
| Tax registration | The company must also be registered at the tax service to obtain a tax number. Additionally, you need to register with the VAT system if your company intends to engage in VAT-taxable activities. |
Key accounting features
In particular:
- Accountancy and audit: Companies in Cyprus need to hold books and draft annual financial statements. Auditing is compulsory for the greater part of the companies.
- Legal and consulting support: In every step of business registration and business conduct, we recommend that you take the expert opinion of qualified legal and accounting consultants.
Setting up a company in Cyprus by foreigners is a pretty easy and profitable process with plenty of advantages. Careful preparation for this process, clear following of the requirements, and use of professionals’ services can ensure compliance with Cyprus legislation and optimization of tax obligations.
Can I get a residence permit when setting up a company in Cyprus?
Obtaining a residence permit through the establishment of a company in Cyprus is an extremely relevant question today for foreign entrepreneurs and investors. Cyprus has just a few programs aimed at attracting foreign capital, at the expense of creating and developing businesses on the island. In this article, we will take a closer look at what Cyprus has to offer in terms of residency visa issuance in conjunction with company formation and get familiar with the major requirements and phases of such a procedure.
Residence visa programs through business investment
There is more than one way that a foreign investor or businessman can acquire a residence visa in Cyprus; among these options are the following:
- Program for individual entrepreneurs and business owners: This is the kind of program targeted at foreign individuals who would like to create their company in Cyprus or invest in an already running business. To apply for the Program, several requirements have to be met, such as the amount of investment and job creation for the local population.
- Fast Track residence permit program: It allows under accelerated conditions the obtaining of a residence permit for those investors who invest substantially in the economy of Cyprus, including establishing a company.
Main requirements for investors and entrepreneurs
With the aim of successfully obtaining a residence permit in Cyprus by establishing a company, a foreign investor must meet certain requirements:
- Investment threshold: The investor is bound to invest a certain sum in establishing a new company in Cyprus or purchasing shares in an already operating company. The sum of investment differs according to the program selected.
- Creation of jobs: This aspect deals with the creation of a certain number of jobs for nationals of Cyprus or EU states. Even the requirements of creating jobs also differ according to the program.
- Financial sustainability: The investor needs to prove he has sufficient financial resources to support his living and that of his family, and also for the conduct of business in Cyprus.
- Housing in Cyprus: The investor should possess or rent an apartment in Cyprus that will serve as a place of permanent residence.
Stages of obtaining a residence permit
- Preparation of the documents and creation of the company: In general, the first thing is to register a company in Cyprus and prepare the required package of documents, such as a business plan, proof of investment, and financial statements.
- Applying for a residence permit: Within the framework of establishing a company, there is the possibility for the investor to apply for a residence permit by submitting all the necessary documents.
- Application review: Applications for a residence permit are usually reviewed within a few months. In certain specific cases, further verification may be necessary.
- Receiving a residence permit: In case the application is approved, a residence permit in Cyprus shall be issued for the investor and his family.
Obtaining a residence permit in Cyprus through the establishment of a company will provide foreign investors and entrepreneurs with the opportunity not only to conduct business in favorable conditions but also ensure the right to live in a country with a high standard of living. To successfully go through this procedure, it is relevant to carefully prepare for and take into consideration all requirements and nuances that are related to obtaining a residence permit.
What does the charter of a company registered in Cyprus include?
The Charter of a company registered in Cyprus is a key document that defines the structure, rights, obligations and way of managing the company. This document, which also comprises the Memorandum of Association and Articles of Association, contains all the principal provisions concerning the activity of the company and must be submitted to the Registrar of Companies of Cyprus at the moment of the company’s registration. Now, in more detail, let’s discuss what is commonly pointed out in the charter of a Cypriot company.
Charter (Memorandum of Association)
The Charter of the company states the main parameters of the company and its goals. The following sections are included:
| Criterion | Details |
|---|---|
| Company name | Full legal name of the company, to be unique and different from the ones already registered in Cyprus. |
| Company objectives | To state which activities the company will be involved in. This is useful for defining the scope of action of the company and protecting the interests of shareholders. |
| Registered office | An address of the office of the company in Cyprus, which will serve as the official legal address. |
| Authorized capital | The size of the authorized capital and details of its division into shares, including the par value of each share. |
| Restrictions on the transfer of shares | Conditions relating to the sale or transfer of shares may be included to protect the interests of shareholders. |
| Founders’ liability | Type of founders’ liability – limited liability, full liability, etc. |
Articles of Association
The statute contains the rules of management and internal organization of the company. It may contain the following:
| Criterion | Details |
|---|---|
| Governance structure | Description of the structure of the governing bodies of the company, namely, shareholders’ meeting and board of Directors and their powers. |
| Elections and appointments | The procedures to be followed in the selection and appointment of directors and their powers. |
| Shareholders’ Meetings | Rules relating to the holding of the shareholders’ meetings, annual and extraordinary meetings. |
| Profit sharing | Dividend policy, the procedure and conditions of their payment order. |
| Accounting and audit | Regulations concerning accounting and auditing. |
| Amendment of the Charter | The order of amendment of the charter documents. |
| Company liquidation | The order of liquidation or reorganization of a company. |
Importance of statutory documents
In corporate life, statutory documents play a key role due to the fact that they establish a legal framework for the operation of an organization in Cyprus and protect the interests of the shareholders, directors, and creditors. They are also considered a basis to create decisions and resolve disputes and conflicts arising within the company.
In view of the above, it is always a good idea to draft them with professional legal assistance so that they can be effective and fully comply with Cyprus legislation and the specific needs of the company; this will also help ensure that everything necessary is adequately taken care of.
Setup of a company in Cyprus: How long?
Setting up an entity in Cyprus is a very attractive move to many international businessmen because of the country’s favorable tax status, strategic location, and ease of doing business. However, company registration may take more or less time depending on many factors, among which are the type of company, how accurate and complete the submitted documents are, and the workload of the registrar. Below, we will review the stages of establishing a company in Cyprus and give a forecast of the duration of each one.
Stages of establishing a company in Cyprus
Preparation and submission of documentation
The preparation of the documents, namely the company’s charter – Memorandum of Association – and Articles of Association, as well as the decision for the appointment of directors and a secretary. These documents may need to be translated into English or Greek, and thus additional time could be added to the whole process by foreign investors.
Time: Depending on the difficulty of the structure of the company and on the time needed for collecting and preparing all the documents, from a few days up to several weeks.
Company name registration
The second step involves picking up the unique company name and then registering it with the Registrar of Companies. It may take several days, given that the picked-up name is not used by any other company and corresponds to all requirements according to the Cyprus legislation.
Time: Normally 1 to 5 business days.
Company registration
After the company name is approved, you will have to submit all the prepared documents to the Registrar of Companies for the purpose of registering the company. At this time, it is wise that one apply for a tax number and social security registration in case the company intends to hire any employee.
Time: It usually takes from 5 up to 10 working days, though it may increase during busy periods.
Opening a bank account
After incorporating a company, the next step would be opening a corporate bank account. It takes any amount of time from a couple of days up to a few weeks, depending on the bank’s requirements or the need for further documentation/information.
Time: From 1 to 4 weeks.
Total time to set up a company
Having in mind the explanations given above regarding the chronological order of specific activities, the total time needed to establish a company in Cyprus is from several weeks up to two months. It should be mentioned that this estimate may slightly vary due to individual conditions regarding the complexity of the legal construction of the company, relations developed with institutions of registration and banking, and completeness and accuracy of presented documentation.
Recommendations to fast-track the process
- Prior preparation of all documents needed: It should be ensured that all the required documents are full and accurate before the commencement of registration.
- Utilization of professional services: Use of lawyers and accountants who have experience in Cyprus company registrations will expedite the process and reduce the likelihood of delays.
- Company name: Choose a few alternatives; to speed up the process, have several company name options in case your preferred name is not available.
It is relatively easier and faster to set up a company in Cyprus compared with many other jurisdictions, and because of this reason, the island is a favorite destination for international business.
What can be done by companies in Cyprus?
Due to its privileged tax environment, Cyprus is strategically positioned at the crossroads between Europe, Asia, and Africa, and it is an EU member state. This attracts many international companies eager to expand their operation. The features of the legal system and the economic policy of Cyprus have created conditions for the widest range of business activities. In this article, we will look at what types of activities can be carried out by companies registered in Cyprus.
| Industry | Details |
|---|---|
| Financial services | Cyprus is referred to as an international financial center and attracts companies specializing in a wide range of financial services: banking, insurance, asset management, and forex. Thanks to the favorable system of taxes and qualified specialists, Cyprus provides ideal conditions for the development of a financial business. |
| Shipping and marine services | Cyprus has one of the largest shipping registries in the world and offers very favorable conditions for companies involved in the sector of maritime transport, ship management, and other ancillary activities. The Government provides a series of tax incentives for shipping companies, making Cyprus an attractive jurisdiction for international shipping. |
| Information technology and software | The information technology sector of Cyprus is dynamically developing, attracting both startups and large IT companies involved in developing software products, mobile applications, games, as well as in providing professional services in the field of IoT, blockchain, and artificial intelligence. Besides this, the Government of Cyprus actively supports innovative projects and venture financing. |
| Trade and Distribution | Cyprus is of great importance as a logistics and distribution link between Europe, the Middle East, and Asia. Its favorable tax conditions and sufficient infrastructure make Cyprus one of the favorite countries for numerous companies with trading platforms, distribution centers, and re-export operations. |
| Tourism and hospitality | Tourism is among the main sectors in the Cyprus economy and attracts investors to the hotel and restaurant businesses, as well as sightseeing and entertainment. The island is famous for its beaches, cultural heritage, and mild climate, thus being in high demand as a holiday destination. |
| Real estate and construction | In the Cypriot real estate market, there are vast opportunities for both investors and developers. Stable demand for housing, commercial, and tourist real estate provides a high investment potential in construction and infrastructure development. |
| Energy sector | The rapidly developing sector of renewable energy in Cyprus is drawn towards solar and wind energy investments. On the other hand, the discovery of natural gas deposits in the Cyprus economic zone opens up new perspectives for investors in the field of energy. |
Cyprus provides the preconditions for carrying on not only a vast variety of businesses but also benefits from a beneficial tax regime, well-developed infrastructure, and a strategic geographical location. Depending on the industry, companies may also be subject to a series of governmental support and additional tax incentives that make Cyprus a good jurisdiction for international business.
Should a company in Cyprus have employees?
In Cyprus, there is no necessity to have employees for all companies. Many small businesses, sole proprietors, or companies with specific activities that require no permanent staff could operate without hiring employees, such as holding or investment companies. However, in case company activity involves such a kind of performance which requires regular participation and management, hiring of employees might become necessary.
Tax and legal aspects
Cyprus incorporated companies are required to fulfill local tax and legal obligations, which might include particular prerequisites concerning employment. For instance, for acquiring certain tax benefits or confirming the company’s status as a Cyprus tax resident, the employment of personnel and conducting an actual activity in Cyprus might be mandatory.
Labor legislation
Under Cyprus labour law, both employers and employees have certain rights and obligations. These concern pay and working hours, and rules on vacations, working conditions, and safety and health measures at the workplace. Where companies employ personnel, they are obliged to comply with the relevant rules and secure their working conditions in accordance with Cyprus law.
Registration and contributions
The companies that hire personnel in Cyprus have to be registered with all the relevant State Authorities. Every employer has to pay social security contributions for his personnel. Such contributions include payment to pensions, health insurance and all the other kinds of social security.
Exceptions and special conditions
Certain types of companies or activities may be subject to special conditions or exemptions. For example, companies that operate only in managing their own assets or investing therein may not need employees. The requirements will properly be understood by consulting a lawyer regarding your particular situation.
Although Cyprus does not have the law, which would oblige all kinds of companies to have employees, it is very important to consider the obligations and legal demands about employment. In this line, those companies that are willing to hire employees have to strictly follow Cyprus labor law, including all the necessary registration in relevant government agencies and paying all respective fees and taxes.
How do I choose a name for my company in Cyprus?
Naming a company in Cyprus is an important process for its incorporation, which requires an appropriate and well-thought approach. The name should not only reflect the essence of the company’s business but should also meet all the legal requirements and be acceptable to the Cyprus Registrar of Companies. In this article, we take into consideration some of the key aspects and tips that will help you choose the right name for your company in Cyprus.
Legal requirements and restrictions
The first step in choosing a company name is to check that the name is compliant with Cyprus law. Some of the well-known requirements include but are not limited to:
- • uniqueness – it needs to be unique and should not match any of those already registered in Cyprus,
- • no misleading elements – on the scope of activities, goals or even status of the company.
Restriction of certain words usage: Words with the features of national belonging or international activity, such as “National” or “European,” can be used only with a special permit.
Conformity to the type of activity
It is desirable that from the name, it would already be clear what the company is involved in, what goods or services it provides. This will make it easier for potential customers and partners to learn more about what your company does.
Easy to remember and pronounce
Choose a name that is easy to remember and spell. This is most important for an international business because your name will be used by people from different countries.
Checking domain name availability
In today’s business world, it is essential to have a website. Check the Internet before finalizing a name to ensure that the corresponding domain name is available so that the website can be easily linked to the name of the company.
International eligibility
If you intend to conduct business internationally, ensure that the name does not have negative connotations or is not unacceptable in other cultures and languages.
Application process
Once the name is agreed upon, an application is made to the Cyprus Registrar of Companies for the approval and registration thereof. We recommend that two or three alternatives of the name are drawn up in case the name chosen is not available.
Consulting professionals
Consider consulting with Cyprus legal consultants or company registration specialists in Cyprus, who will assist you in selecting a name but also in successfully registering it by having in mind all legal aspects and requirements.
Naming a company in Cyprus is not a mere formality; rather, it will be one of the bases of your branding and marketing strategy, and its name has great power to make it either successful or failure. If you pay due attention to this process and follow the recommendations above, you will be able to choose a name that will contribute to the growth and development of your company.
Business Register in Cyprus
The Business Register of Cyprus is an essential element in the infrastructure of business in Cyprus; it provides maximum transparency and potential regulation to the activities of companies. The Business Register is an official list, which includes every corporate entity registered on the island, whether a private company, public company, partnership, or other legal entity. In this article, we take a close look at what a Business Register in Cyprus constitutes, its roles, and its importance in the business field.
What is a business register in Cyprus?
The Business Register of Cyprus or more commonly referred to, Company Register of Cyprus, falls under the administration of the Department of Registrar of Companies and Official Receiver. It keeps a record of all the official details associated with the companies incorporated in Cyprus, such as name, registered office, particulars of the directors and shareholders, and annual reports along with the balance sheet / financial statements filed.
Main functions of the business register
- Company Registration: As stated above, the Business Register also registers new companies and allocates a unique registration number to the companies when registered.
- Storage: The Register stores all the essential information of the companies, data about changes in the statutory documents, and also information regarding appointment and removal of directors, winding up, or reorganization of the companies.
- Informing: It is a necessary means through which investors, lenders, partners, and governmental entities are enabled to verify some legal positions of firms regarding their financial stability.
The Business Register plays a very serious role in the maintenance of transparency and confidence in the business environment of Cyprus. While the facility for registration and management of companies is obviously enabled, it also helps in the combating of fraud and corruption by making available reliable and up-to-date information with regard to business entities.
How to use the business register in Cyprus?
Access to information in the business register is allowed through the official website of the Registrar of Companies Department. The user can search by company name, registration number, or by director to access information on companies. Certain information can be provided for a fee.
The Business Register of Cyprus constitutes an intrinsic part of the business landscape of Cyprus, providing support and transparency for all market participants. This, in turn, enables the climate of business, thereby further cementing Cyprus’ reputation as a trustworthy and appealing investment destination. Since easy access is provided to information that is accurate and up-to-date, the Register of Cyprus Businesses serves in trusting and building confidence among companies and their international partners and customers.
RUE can help with the preparation of the full package of documentation required to obtain a financial license in Cyprus – company formation, preparation of a business plan for your project, ensuring accounting requirements, selection of local employees for key positions, as well as comply with the requirements of the regulator, which should be taken into account when enforcing anti-money laundering (KYC/AML) requirements. These recommendations will significantly reduce the time for obtaining a financial license in Cyprus and will help companies interested in obtaining an EMI, payment institution, Forex, investment fund license to implement their project in Cyprus in the shortest possible time.
“Are you contemplating the initiation of your business in Cyprus? This might be an ideal opportunity for you. Contact me today, and let’s engage in a thorough conversation regarding your project.”
FREQUENTLY ASKED QUESTIONS
How long does it take to open a company in Cyprus?
The time it takes to open a company in Cyprus can vary based on several factors, including the type of company, the completeness of documentation, and the efficiency of the registration process. On average, it may take a few weeks to a couple of months to complete the entire company formation process in Cyprus. Working with experienced professionals and ensuring all required documents are in order can help expedite the process.
What are the features of the Cyprus jurisdiction?
- The data about the director of the company in Cyprus are freely available, while the name of the owner is not subject to disclosure.
- Reports on the company’s activities must be submitted in two languages – English and Greek. The reports include an annual financial report and a tax return.
- Cyprus has a favorable regime for the taxation of intellectual property income – the company’s profit tax rate can be reduced to 2.5%.
- It is recommended that at least one of the company’s directors have a registration in Cyprus, as this will allow you to take advantage of the great advantages of the jurisdiction
What are the types of legal persons in Cyprus?
Prior to the registration of a company in Cyprus should be aware of the existing organizational and legal forms of business. The most popular form of business activity is Private company limited by shares – a company with limited liability.
- Public company limited by shares – limited liability company
- Exempt private company – a company of the closed type, exempted from taxation
- Company limited by guarantee – a company with the responsibility of participants within the guaranteed amount
- Partnership – Partnership
- Trust – Trust
How to open a bank account in Cyprus?
It is possible to hold accounts in Cyprus as a resident of the country and a foreign citizen.
To open an account with the Cyprus Bank, you will need to file a package of documents, including:
- a notarized copy of the passport
- proof of address of actual residence (for example, utility bills)
- confirmation of the legality of income (tax declaration)
- recommendations from other companies, and banks in Europe, with which the applicant previously cooperated
Some banks ask for other documents – the list needs to be specified in a particular financial institution. The time and cost of opening an account depends on the selected service package and the bank’s policy.
What is the process of the company formation in Cyprus?
To form a company in Cyprus:
- Choose a unique name and get it approved.
- Draft the Memorandum and Articles of Association.
- Determine share capital, appoint directors, and have a registered office.
- Submit documents to the Registrar of Companies with applicable fees.
- Upon approval, receive the Certificate of Incorporation.
- Register for taxation, open a bank account, and, if necessary, register for VAT.
Professional assistance can streamline the process, ensuring compliance with regulations.
Can non-residents register a company in Cyprus?
Yes, non-residents can register a company in Cyprus. The country encourages foreign investment, and individuals or entities from any part of the world can establish and own companies in Cyprus. The process is designed to be accessible to both residents and non-residents, fostering a business-friendly environment.
Appointment of officials of the Cyprus company
Limited liability companies in Cyprus (Ltd) have such officers as director, secretary, shareholders, beneficiaries.
1. Headmistress
Directors appoint shareholders and, if necessary, decide on their replacement. The Director may be a resident or non-resident, a natural or legal person, and has the authority to sign the company and to manage the company’s bank accounts. Once a company is established in Cyprus, the information about its director is placed in the Register of Companies and becomes publicly available.
2. Secretary
The presence of a secretary is a must for all Cypriot companies. Among his duties – filing documents in the Register, storage of documents, corporate correspondence and other. The right of signature does not have the secretary. Mainly secretarial functions entrust legal companies that provide a full range of corporate services to international non-resident entrepreneurs of Cyprus.
3. Shareholders
The shareholders of the Cyprus Company may be natural or legal persons, including non-residents of the country. Information about shareholders and their shares shall be recorded in the Register and become available to third parties only upon special request.
4. Beneficiary
The beneficiary of the Cyprus company is the person who manages the company. The information about the beneficiary of the Cyprus company is confidential and not is registered in the Register of Companies, and also not subject to disclosure to third parties – banking, auditing and other organizations.
How many shareholders and board members can be in the company?
In Cyprus, a private company (Ltd) must have at least one shareholder, and the maximum allowed is fifty. As for the board of directors, a minimum of one director is required, and there is no maximum limit specified by law. Therefore, a Cypriot company can have one or more directors. It's important to note that the roles of shareholder and director can be held by the same or different individuals or legal entities.
What corporate taxes are in Cyprus?
Cyprus is an excellent jurisdiction to optimize the taxation of your business. The taxation of companies in Cyprus includes:
- An annual fee of €350, which must be paid by the end of June of each year, whether or not there is some business activity;
- Capital gains tax after the sale of real estate or shares in the country – 20%;
- VAT (usually 19%). For some activities the rate is lower: 9% – transportation of passengers and luggage, catering, nursing care, renting of real estate to tourists, 5% – food industry, repair of housing, sale of tickets for excursions, etc., 0% – banking, insurance, finance, and some others.
- Income tax of 12.5% regardless of the source (from abroad or within Cyprus);
Tax exemptions are provided for companies with activities related to education, intellectual property, rental housing, insurance and some other areas.
You will not have to pay taxes when re-registering real estate, as well as when receiving payments from subsidiaries and subsidiaries abroad.
Licensing of activities in Cyprus
Depending on the direction of business, the authorized body must issue a license, to confirm the right of the company to conduct its business.
It’ll take about a week to get a permit. However, if the company is engaged in insurance or banking activities, the licensing process may take several months.
Opening a corporate bank account in Cyprus
It is possible to hold accounts in Cyprus as a resident of the country and a foreign citizen.
To open an account with the Cyprus Bank, you will need to file a package of documents, including:
- a notarized copy of the passport
- proof of address of actual residence (for example, utility bills)
- confirmation of the legality of income (tax declaration)
- recommendations from other companies, banks in Europe, with which the applicant previously cooperated
Some banks ask for other documents – the list needs to be specified in a particular financial institution. The time and cost of opening an account depends on the selected service package and the bank’s policy.
Appointment of officials of the cyprus company
Limited liability companies in Cyprus (Ltd) have such officers as director, secretary, shareholders, beneficiaries.
1. Headmistress
Directors appoint shareholders and, if necessary, decide on their replacement. The Director may be a resident or non-resident, a natural or legal person, and has the authority to sign the company and to manage the company’s bank accounts. Once a company is established in Cyprus, the information about its director is placed in the Register of Companies and becomes publicly available.
2. Secretary
The presence of a secretary is a must for all Cypriot companies. Among his duties – filing documents in the Register, storage of documents, corporate correspondence and other. The right of signature does not have the secretary. Mainly secretarial functions entrust legal companies that provide a full range of corporate services to international non-resident entrepreneurs of Cyprus.
3. Shareholders
The shareholders of the Cyprus Company may be natural or legal persons, including non-residents of the country. Information about shareholders and their shares shall be recorded in the Register and become available to third parties only upon special request.
4. Beneficiary
The beneficiary of the Cyprus company is the person who manages the company. The information about the beneficiary of the Cyprus company is confidential and not is registered in the Register of Companies, and also not subject to disclosure to third parties – banking, auditing and other organizations.
Features of taxation and reporting
Features of taxation and reporting
The Cyprus company undertakes to pay tax. The profit tax is 12.5%, for domestic transactions is provided VAT of 19%. Among the undeniable advantages, I would like to highlight the absence of taxes in key areas – acquisition of real estate, inheritance, receipt of assets, payment for municipal services. In addition, income from securities transactions and dividends are not subject to taxation.
Required annual reporting for Cyprus Company:
- financial statements with the opinion of an external auditor;
- the tax return for the reporting period;
- financial statement in Greek;
- annual report with information about the secretary, directors and shareholders.
The first three years of the company’s operations are reported to the Tax Department. In addition, a document in Greek is submitted to the Registration Chamber of Cyprus.
| Profit Tax |
0-12.5% | The need for an annual report |  |
| VAT |
0-19% | Need for an audit opinion | |
| Need for accounting | |
Physical office |
No |
Features of jurisdiction
- The data about the director of the company in Cyprus are freely available, while the name of the owner is not subject to disclosure.
- Reports on the company’s activities must be submitted in two languages – English and Greek. The reports include an annual financial report and a tax return.
- Cyprus has a favourable regime for the taxation of intellectual property income – the company’s profit tax rate can be reduced to 2.5%.
- It is recommended that at least one of the company’s directors have a registration in Cyprus, as this will allow you to take advantage of the great advantages of the jurisdiction.
Types of legal persons in Cyprus
Prior to the registration of a company in Cyprus should be aware of the existing organizational and legal forms of business. The most popular form of business activity is Private company limited by shares – a company with limited liability.
- Public company limited by shares – limited liability company
- Exempt private company – a company of the closed type, exempted from taxation
- Company limited by guarantee – a company with the responsibility of participants within the guaranteed amount
- Partnership – partnership
- Trust – Trust
How to open a company in Cyprus?
You can register a company in Cyprus on a personal visit to the island or remotely. You need to choose a company form, prepare documents and apply to the register. Basic documents: copy of passport and confirmation of residence. The new company opens in 5-7 working days.
Is it possible to open a holding in Cyprus?
Yes, Cyprus allows you to open companies for a variety of activities: Trade, IT business, Intellectual Rights Management (IP), Holding.
How fast is the company registered in Cyprus?
Registration of the company in Cyprus takes 5-7 working days, subject to the correct submission of documents. The registration period of the company is extended if you need to obtain a license to operate.
Is a personal presence required when opening a company in Cyprus?
Personal presence to register a company in Cyprus is not necessary, all necessary legal procedures can be carried out remotely.
Why is it profitable to register a company in Cyprus?
Among the obvious advantages of the company’s registration in Cyprus can be mentioned financial stability of the country, its membership in the European Union, low taxes (VAT 19%, corporate tax 12.5%) and the ability to conduct international business (no double taxation with more than 60 countries).
Who can start a company in Cyprus?
A Cyprus company may have one or more shareholders, who may be natural and legal persons, including non-residents of Cyprus.
What is the procedure of registration of the company in Cyprus?
Initially, it is necessary to choose the name of your enterprise, which is checked for the absence of analogues in the register of companies. In the name must be the end of Limited, it is not allowed to use words and expressions, hinting or directly indicating illegal activities. The next step is the legalization of the company’s documents with the subsequent submission of documents to the register. The documents must include the address of the office to confirm the legal address of the company and proof of the economic presence of your business in Cyprus.
How much does it cost to register a company in Cyprus?
The standard cost of registration offshore in Cyprus – from 1, 750 EUR. This amount includes the first year of service of the company (legal address). In addition, it is necessary to pay a mandatory state fee of 350 EUR.
Is it necessary to prove the real presence of business in Cyprus?
Yes, this is a mandatory measure if you are interested in the company being a tax resident of Cyprus. Such evidence would include the filing of annual financial statements, the address of the company’s office in Cyprus, which holds all the company’s accounting records, the contracts concluded, the auditors’ report and other documents of the company, as well as the presence of a secretary with the Cyprus residence. All decisions and management of the company should be carried out in Cyprus.
Does RUE provide after completion of the registration process?
Yes. After your company is registered, you can get detailed guidance on further work with the company (filing of reports, payment of fees, etc.), as well as consultation with our lawyer and accountant. If necessary, you can always contact our company on any legal or accounting issues.
How to choose a company name in Cyprus?
The new company should have a unique name that reflects its activities. In Cyprus, it is possible to form a company name in any language, it is only necessary to take into account that you will have to use the Greek or Latin alphabet with a mandatory translation. It is not allowed to register names that repeat or resemble existing names. It is also forbidden to use the name if the firm being established contains a hint of a connection with patronage of royal families or illegal activities. Some words in the name of the Cyprus company imply compulsory licensing. This includes the names – «bank», «insurance», «trust», therefore the name of the company should accurately reflect its future sphere of activity. At the end of the name requires an end Limited. The abbreviation Ltd is allowed.
After submitting an application for registration of a company in Cyprus, the registrar checks the uniqueness of the name, whether there is no similarity in writing and sound with other Cypriot enterprises. In order to get approval more likely and in the shortest possible time, it is better to provide several variants of the company name for consideration. After checking the name of the company to be established, a reservation is made in the Register of Companies, after which an official reply is received on the possibility of its use.
How cyprus company make decisions?
The management of the Cyprus company is carried out by documented voting of the shareholders’ meeting, while the board of directors does not lose control over the company’s title documents. To protect against illegal and unauthorized actions, shareholders of the company can deposit Restrictions on the powers of the director. Shareholders’ meetings held abroad become an additional requirement. If the company is registered as a resident of Cyprus, assemblies are mandatory in the territory of Cyprus.
Licensing of activities in Cyprus
Depending on the direction of business, the authorized body must issue a license, to confirm the right of the company to conduct its business.
It’ll take about a week to get a permit. However, if the company is engaged in insurance or banking activities, the licensing process may take several months.
Opening a corporate bank account in Cyprus
It is possible to hold accounts in Cyprus as a resident of the country and a foreign citizen.
To open an account with the Cyprus Bank, you will need to file a package of documents, including:
- a notarized copy of the passport
- proof of address of actual residence (for example, utility bills)
- confirmation of the legality of income (tax declaration)
- recommendations from other companies, banks in Europe, with which the applicant previously cooperated
Some banks ask for other documents – the list needs to be specified in a particular financial institution. The time and cost of opening an account depends on the selected service package and the bank’s policy.
Appointment of officials of the cyprus company
Limited liability companies in Cyprus (Ltd) have such officers as director, secretary, shareholders, beneficiaries.
1. Headmistress
Directors appoint shareholders and, if necessary, decide on their replacement. The Director may be a resident or non-resident, a natural or legal person, and has the authority to sign the company and to manage the company’s bank accounts. Once a company is established in Cyprus, the information about its director is placed in the Register of Companies and becomes publicly available.
2. Secretary
The presence of a secretary is a must for all Cypriot companies. Among his duties – filing documents in the Register, storage of documents, corporate correspondence and other. The right of signature does not have the secretary. Mainly secretarial functions entrust legal companies that provide a full range of corporate services to international non-resident entrepreneurs of Cyprus.
3. Shareholders
The shareholders of the Cyprus Company may be natural or legal persons, including non-residents of the country. Information about shareholders and their shares shall be recorded in the Register and become available to third parties only upon special request.
4. Beneficiary
The beneficiary of the Cyprus company is the person who manages the company. The information about the beneficiary of the Cyprus company is confidential and not is registered in the Register of Companies, and also not subject to disclosure to third parties – banking, auditing and other organizations.
Features of taxation and reporting
The Cyprus company undertakes to pay tax. The profit tax is 12.5%, for domestic transactions is provided VAT of 19%. Among the undeniable advantages, I would like to highlight the absence of taxes in key areas – acquisition of real estate, inheritance, receipt of assets, payment for municipal services. In addition, income from securities transactions and dividends are not subject to taxation.
Required annual reporting for Cyprus Company:
- financial statements with the opinion of an external auditor;
- the tax return for the reporting period;
- financial statement in Greek;
- annual report with information about the secretary, directors and shareholders.
The first three years of the company’s operations are reported to the Tax Department. In addition, a document in Greek is submitted to the Registration Chamber of Cyprus.
| Profit Tax |
0-12.5% | The need for an annual report | |
| VAT |
0-19% | Need for an audit opinion | |
| Need for accounting | |
Physical office |
No |
Features of jurisdiction
- The data about the director of the company in Cyprus are freely available, while the name of the owner is not subject to disclosure.
- Reports on the company’s activities must be submitted in two languages – English and Greek. The reports include an annual financial report and a tax return.
- Cyprus has a favourable regime for the taxation of intellectual property income – the company’s profit tax rate can be reduced to 2.5%.
- It is recommended that at least one of the company’s directors have a registration in Cyprus, as this will allow you to take advantage of the great advantages of the jurisdiction.
Types of legal persons in Cyprus
Prior to the registration of a company in Cyprus should be aware of the existing organizational and legal forms of business. The most popular form of business activity is Private company limited by shares – a company with limited liability.
- Public company limited by shares – limited liability company
- Exempt private company – a company of the closed type, exempted from taxation
- Company limited by guarantee – a company with the responsibility of participants within the guaranteed amount
- Partnership – partnership
- Trust – Trust
RUE customer support team
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CONTACT US
At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.
Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email: [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague
Registration number: 304377400
Anno: 30.08.2016
Phone: +370 6949 5456
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania
Sp. z o.o
Registration number: 38421992700000
Anno: 28.08.2019
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland
Europe OÜ
Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email: [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia
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