Cyprus is one of the most important business centers in Europe thanks to its taxation system, its stable economy and the legislation which favors foreign investors
seeking to establish companies here. The company formation procedure in Cyprus
is basically the same for all business entities, having a simple and straightforward structure.
The procedure of company formation in Cyprus
includes drafting the articles of association and other documents required for the incorporation of a Cypriot company
, such as signatures, passport copies, forms etc. New owners may also need to go to a local public notary, find an office for their company and set up a bank account
. A Cypriot accountant
may also be required for new business incorporation.
| Quick Facts || |
| Types of companies || |
Private limited liability company
Public limited company
Compaby liability by shares
Non profitable company
Minimum share capital
for LTD Company
1 share of €1
Minimum number of
shareholders for Limited Company
| 1 |
| Time frame for the incorporation || |
about 5 working days
| Corporate tax rate || |
12.5% on worldwide net profits
| Dividend tax rate || |
| VAT Rate || |
| Any Tax incentives || |
There are many tax incentives:
- 12.5% corporate tax on its net profits;
- 0% tax on any revenues from trading in securities such as shares etc.;
- 0% tax for all profits from the sale of real estate abroad;
- 0% tax on dividends paid out to the shareholders, as frequently as you like;
- 0% tax on any dividends paid to it by any other company in which it holds shares;
- 0% stamp duty in many occasions;
- 0% tax on profits of permanent establishments abroad, such as hotels, casinos, restaurants, factories etc.;
- 0% tax on any income from selling its own shares;
- 2.5% tax on IP rights, revenue or rights;
- Cyprus has a network of more than 65 Double Taxation Avoidance Treaties with as many countries of which you can benefit.
| Are Shelf Companies Available? || Yes |
| Do you supply a Registered Address/Virtual Office? || Yes |
| Local Director Required || Yes |
| Annual Meeting Required || Yes |
| Redomiciliation Permitted || Yes |
| Electronic Signature || Yes |
| Is Accounting/Annual Return Required? || Yes |
| Foreign-Ownership Allowed || Yes |
| Any Tax incentives || Yes |
We are members of several organizations
E.R. Team Global Consultants (OpenCompanyCyprus.com) is a trusted member of BridgeWest. They are also part of important organizations, among which the Expat Brifeing web portal and of the HG.org legal website. The CEO of our company, Evgenios Erotokritou is an important member of the Cyprus Bar Association since 1980 and of the Honorable Society of the Middle Temple:
Types of companies described by our Cyprus company formation experts
- Limited liability company
- in Cyprus this type of company, also called an LTD
, can either be public or private, depending on the types of shares and the size of the corporation. In terms of share capital requirements, the private limited liability company is not imposed with a minimum amount of money, however, in the case of a public company, the minimum share capital is approximately 25,650 euros.
- Foreign companies are welcome to create branch and representative offices, as well as subsidiaries which will operate as extensions of the parent companies in Cyprus. Each structure has its own requirements that have to be met by the founders. Our Cypriot company formation specialists can help you set up one of the business forms presented above.
- Partnerships in Cyprus
. There are two types of partnerships available for registration in Cyprus – the general and the limited partnership. These are not considered separate business entities
from their owners. Both types of partnerships require a minimum number of two participants and a maximum number of 20 participants.
Incorporating a Private Company Limited by Shares (LTD) in Cyprus
This is the most common type of company used in Cyprus
and it is founded by one or more partners - up to 50. Other important requirements for setting up a private limited liability company are a local address and a secretary. The shareholders subscribe shares, monetary or non-monetary, which are given a nominal value and cannot be transferred. The members of a private company limited by shares
are liable to the company's debts and obligations only to the extent of the nominal value of their shares. In a private company limited by shares, there is no minimum required capital. If you need assistance in opening this type of company, you can rely on our experts in company formation in Cyprus.
Registering a Public Company Limited by Shares (PLC) in Cyprus
Businessmen who want to open a business in Cyprus
as a public company limited by shares
should know that this company functions the same as a private company limited by shares, except that shares are freely transferable and there is no restriction as to the maximum number of partners. It must also have at least 7 shareholders. The minimum share capital
of a public company limited by shares is 25,650 euros.
Setting up a subsidiary, branch and representative office in Cyprus
These legal forms are available for any foreign company interested in entering the Cypriot market. These can be set up as separate entities from the parent company (Cypriot companies
having the foreign company as shareholder) or extensions of the parent-company in Cyprus. Also, subsidiaries
are a popular option of entering the Cypriot market.
Documents related to the Cyprus company formation procedure
Both local and foreign investors who want to open companies in Cyprus
must prepare the following documents and submit the following information with the Trade Register:
- name application for approval of name;
- HE1 Form stamped at the Court
- HE2 form – declaration of Registered address
- HE3 Form – declaration of Director and Secretary
- M&A signed by Shareholder and Lawyer.
The offshore company in Cyprus
The limited liability company can also be employed by foreign investors who want to set up offshore companies in Cyprus. The Cyprus offshore company will be registered by following the same company formation procedure, however, its activities must be completed outside the country.
- it will benefit from reduced tax rates and will be subject to one of the lowest corporate taxes in Europe;
- it can be created as a holding company with the main activity related to the control of assets in other Cypriot companies;
- it can also be created as a trading company, but as mentioned above its goods and services must be offered outside Cyprus;
- it offers enhanced protection to its shareholders from a privacy point of view.
We also invite you to see a short version of the process of company formation in Cyprus in the scheme below:
The incorporation procedure presente by our Cypriot company formation agents
Cypriot private companies
limited by shares must have a registered office in Cyprus
and are managed by a management board. Foreign investors must appoint a local agent who handles the company formation process in Cyprus. It may, however, be necessary to come in person when the bank account is opened
in order to sign some papers and provide the registration certificate and identification documents of the managers.
is only compulsory for the companies that perform activities that are subject to the Value Added Tax, such as trading. In case you need to register your company for VAT, our consultants in Cyprus company formation
matters can help you.
A new company in Cyprus must hire employees. Recruitment is not a difficult process if you collaborate with job websites and recruitment agencies, especially since the workforce in Cyprus is so well-trained. Starting a business in Cyprus implies several steps and our team is ready to assist you through the entire procedure.
Company formation steps in Cyprus
choosing and reserving the company name with the Companies Register - this name must be unique, therefore we advise you to verify at least 3 names before making the reservation;
preparing and notarizing the company’s statutory documents which are made of the Articles of Association;
filing all the documents and information mentioned above with the Trade Register and obtain their approval and the company's Certificate of Registration;
registering for taxation, obtaining the VAT number and registering for social security purposes with the tax authorities;
applying for various special licenses or authorizations, depending on the industry the Cypriot business will operate in.
Investors who would like to open a business in Cyprus can receive specialized assistance from our team of incorporation agents.
Costs related to starting a business in Cyprus
One of the main aspects related to company registration in Cyprus
is related to the costs associated with its setup. From this point of view, we must mention that the costs of registering a company
depend on its type and the industry it will operate in.
The following procedures should be considered when speaking about the costs related to opening a company in Cyprus:
- the company name reservation is completed with the Trade Register and is subject to a fee of approximately 30 euros;
- the costs related to the drafting and notarization of the incorporation documents will depend on the public notary;
- the future business owner must also take into account the company registration fee;
- there are no costs related to tax, VAT and social security registration.
The company formation costs of a business in Cyprus are as follows:
the company registration fee imposed by the Cyprus Companies Registrar is 650 EUR;
the registered address is set at approximately 350 EUR per year with us and it represents one of the cheapest and fastest solutions for a registered office in this country;
the minimum share capital of a private limited liability company in Cyprus is set at 1 EUR, however, the investor chooses the amount of money necessary for the business;
the company registration cost of our local specialists is 600 EUR and it is one of the lowest setup fees in Cyprus;
the accounting fees imposed by our local accountants start at around 100 EUR/month and depend on the services sought by clients.
Businessmen interested in starting a business in Cyprus
should also take into consideration the costs related to the opening of the corporate bank account
which will vary depending on the bank and the services attached to the account.
How long does it take to register a company in Cyprus?
Another important aspect related to opening a Cyprus company
is the time spent on each procedure. It can be divided into:
- 4-5 days for the company name approval;
- 1 or 2 days for preparing the company’s statutory documents;
- the filing and review of the company’s incorporation documents with the Trade Register will take another 5 working days;
- the registration for taxation is about 2 working days;
- social security registration is about 1 week.
The main advantage is that all the paperwork can be filed electronically with the Cyprus Trade Register.
Frequently Asked Questions about Company Formation in Cyprus
1. Can a foreigner open a company in Cyprus?
Yes. Cyprus welcomes foreign investors in various business fields. The legislation for investments allows foreigners to open the same types of legal entities
as national investors.
2. What are the types of companies that can be incorporated in Cyprus?
The types of companies in Cyprus are: private and public limited companies, partnership, sole proprietorships or branches of foreign companies. Our Cypriot company formation experts can help you
understand the particularities of each business type.
3. Does the company need to have an office in Cyprus?
Yes. A local registered office is needed for a company incorporated in Cyprus. The incorporation documents must be kept at this address. Our specialists in company formation in Cyprus can offer to businessmen special virtual office packages which include a local address.
4. What are the steps for company incorporation in Cyprus?
Choosing the right type of company and an available business name, drawing up the company documents and submitting them to the Cypriot Trade Register. After the company is registered, the business owner can start applying for other permits and licenses and register the company for VAT purposes.
5. What is the minimum share capital in Cyprus?
There are no mandatory requirements for a minimum share capital for a private limited liability company. Our company formation experts in Cyprus recommend that you do deposit an initial capital for your company of approximately 1,000 EUR. The public limited liability company required no less than 25,630 EUR as minimum share capital.
6. What are the requirements for opening a bank account in Cyprus?
Banks in Cyprus will generally require the company to present its incorporation documents. A bank account can be opened at any bank in Cyprus.
7. Do you need special permits and licenses in Cyprus?
Yes. Special permits and licenses are needed for some activities.
8. What are the taxes for companies in Cyprus?
Cyprus has a corporate income tax of 12.5%. Dividends have a taxation rate of 17% unless a double tax treaty applies. Other taxes in Cyprus include capital duty, social security contributions, stamp duty, transfer tax, real property tax. Our specialists in company formation in Cyprus can help you comply with the taxation rules available in this country.
9. What are the reasons to invest in Cyprus?
A good geographical location and advanced infrastructure are why many import and export companies base their business in Cyprus. Moreover, the country has a good tax system, a sound legal and regulatory framework and qualified workforce.
Key facts about Cyprus
- Cyprus has one of the lowest corporate tax rates in Europe: 12.5%.
- The standard VAT rate is 19%, but there are also two reduced rates of 8% and 5%. There are also some services and goods to which a zero VAT rate is applied. The minimum annual turnover that a company must reach in order to be mandatory to register for VAT is 15.600 EUR (or 10251 EUR for the acquisition of EU goods).
- There is no withholding tax on the dividends
paid by a Cyprus company to its non-Cyprus resident shareholders
and no withholding tax applies on dividends received from EU subsidiaries.
- Foreign investors have the possibility of setting up holding companies in Cyprus – one of the best tax minimization solutions in this country.