Cyprus Company Formation
Set up your company in Cyprus remotely in a few days and start saving on taxes.
We help individuals and companies save taxes and provide a complete package of the required services including advice on the set-up, company registration, VAT and tax registration, bank account opening, administration and accounting services.
Benefits of registering a Cyprus Company
12.5% Corporate Tax
0% Tax on the Sale of Shares and securities
0% Dividends Tax
Structure your property’s rental income for minimal tax
2.5% corporate tax for software developing companies
Obtain work permits for your employees
The Company Registration Process
Get a free consultation to have any questions answered and set next steps with timeframes
Provide us with the desired company name and required information on directors, secretary and shareholders
We approve the company name and prepare the memorandum and articles of association of the company
We file the necessary documents and have the company registered in a few business days
We register the company to the tax and VAT authorities of Cyprus, take care of the UBO registration, open a bank account and assist with any other immigration and non-domiciled tax registrations required
We take care of your company’s annual regulatory and financial accounting needs as well as the company’s and your personal tax filings.
Starting a business in Cyprus
Who is it for?
12.5% Corporate Tax and 0% Tax on Dividends
A Cyprus company is frequently used by individuals living in high tax countries such as Germany, the UK and Scandinavian countries that are working in areas in which they do not need to be physically present at an office every day of every year (for example marketing, software development, consulting and management).
Solo entrepreneurs and digital nomads can register a Cyprus company to conduct their business through it and invoice their work from the Cyprus company. This allows for the reduction of income tax or corporate tax. Tax on profits in Cyprus is 12.5% compared with 25% in England and 30%+ in Germany.
Additionally, when such individuals move to Cyprus and become non domiciled tax residents they also pay 0% dividends tax allowing them to save on high income taxes. Note that in certain occasions people may be liable to pay contributions for the national health system at 2.65% on a maximum income of 180.000EUR.
Up to 2.5% Effective Taxation for software developing Companies
Companies small or large involved in the development of software and other qualifying intellectual property, have an incentive of moving to Cyprus or being set-up in Cyprus to take advantage of the IP Box taxation which allows corporate tax to be reduced up to 2.5% of the profits.
Cyprus offers a great tax benefit as the 2.5% effective corporate taxation on profits is combined with the ability to pay 0% dividends tax as well as obtaining quickly work permits for staff (Cyprus allows up to 70% of the staff of a company to be highly skilled non-EU workers).
Lower tax, Lower operation costs and happier employees
Cyprus does not only offer excellent taxation. It also offers great living conditions and lower cost for employees and operations.
A company registered in Cyprus can be used to move certain operations (for example administration, call centers, accounting functions, etc.) or all of them from abroad, leading not only to reduced taxation but savings of thousands or millions in cheaper personnel. And thanks to the sun in Cyprus and great living conditions, people are happier in Cyprus too.
0% tax on sale of shares and up to 2.5% tax on profits
Startups involved in app or software development can benefit from the 2.5% effective corporate taxation on profits but, perhaps more importantly for founders, all startup founders will benefit from 0% tax on sale of shares (provided of course that the company does not have real estate in Cyprus).
The 0% tax on the sale of shares is especially important considering that start-ups may round up losses for some or several years before turning in a sizeable profit and corporate tax may not be a concern before the actual sale of shares. However, a founder holding shares in a startup company in Cyprus who wishes to sell his / her shares will benefit from 0% tax on exit.
Extensive double tax treaties to assist in tax structuring
Cypriot companies can be used either as trading companies taking advantage of the extensive double tax treaties that Cyprus has entered into or as parent companies of trading companies in other countries, taking dividends tax-free and allowing for the structuring of the group’s tax.
How long does it take?
Our cost for the Company registration includes the government fees for expediting the registration process so that your Cypriot Company is registered within a few days and not weeks or months. We also take care to push the authorities to proceed with the registration faster as time is important.
Typically, it takes 3-4 working days to get a name approved and 3-4 working days to get the Cyprus company registered.
However, you can expedite the process by:
Choosing one of our pre-approved names and have the company registered in 3-4 working days; or
Getting a shelf company and change the officers or shareholder (which however has a higher cost)
Company Registration in 6 Steps
In order to register a Cyprus company you will need the following
A company name must be provided when registering a company in Cyprus.
In practice, the Companies Registrar has discretion to accept or reject a name and is generally risk averse in the approval of names (in comparison to the English Companies House which allows more similarity in names than the Cypriot Companies Registrar). We do however take care to check the desired name unofficially before formally applying for a company name in order to avoid any rejection and the additional cost and time it would take to get the name approved.
There are however some restrictions as to the names that may be approved by the Cyprus Companies Registrar, the main one of which is that the name of the company being registered in Cyprus must not be too similar with an existing name of another company.
The Cyprus company formation process requires the appointment of a person to act as a secretary. The secretary’s duties are not defined in the Cyprus Company Law Cap.113, but these are generally administrative. A Cypriot company’s secretary has the obligation to maintain the company’s records up to date and keep them in the Company’s registered office. The Company’s secretary is, amongst other, also responsible for signing changes to the Company and filing records in the Companies Registrar and has other regulatory duties.
The secretary of a Cyprus company should be resident in Cyprus and a Cyprus company with two shareholders cannot have the same person acting as director and secretary. Instead, either a different person must act as a secretary from the director, or there should be 2 directors and one of them will also be the secretary.
Our office is offering nominee secretary services when forming a company in Cyprus to allow you to operate a company in Cyprus while staying abroad or when you move to Cyprus but do not want to deal with the administrative hassle.
A company registered in Cyprus should also have a registered office in Cyprus. The registered office is the place of service of important documents to the company but also where the company’s original records must be kept by the secretary.
The registered office of a Cypriot company cannot be just a mailbox and depending on the companies activities (for example in trading companies), more substance may be required (including having employees, signs on the doors of the office etc).
A director generally does not have personal responsibility for the management of the company, subject to certain obligations, such as the company paying the VAT and social insurances for employees and certain torts. (such as procuring a breach of contract etc.)
A nominee director is frequently used during the Cyprus company formation process for four main reasons:
A nominee director is used to ensure that the management and control of the company is in Cyprus and avoid adverse taxation from another country.
A nominee director is used when the Company will have dealings with authorities in Cyprus and the company’s owner (the shareholder / beneficial owner) will either not be in Cyprus consistently throughout the year.
The directors of a Cypriot company are responsible for its management and control and are bound by certain duties. A Cypriot company can have one or more directors. For taxation reasons, at least one director should be resident in Cyprus but preferably, the majority of directors should be resident in Cyprus.
The same goes for certain banks in Cyprus who will need the director to be present at the opening of a bank account and the company’s annual KYC information renewal. (updated utility bills, forms etc.)
A nominee director has knowledge of both the regulatory duties of the company and his own duties towards the company and the authorities the company deals with. A person registering a company in Cyprus may not have such knowledge and in theory would prefer focusing on growing his business instead of having the discomfort, risk, cost and worry of having to deal with such obligations.
Lastly a person registering a company in Cyprus may wish to ensure confidentiality in his business by using a nominee director who would sign all documents and appear in any negotiations etc. While a nominee director and a nominee shareholder / or trustee will still have the obligation of informing the authorities in Cyprus of the identity of the Ultimate Beneficial Owner (UBO) of the Cypriot company, the UBO registry is not freely accessible to everyone.
Our firm offers expert nominee services to ensure that your company in Cyprus is always maintained and administered correctly, enabling you to focus on what you do best and grow your business.
However, if the owner of a company wants to nominate its own director/s and secretary then the following information needs to be provided:
(i) Persons acting as a director/ secretary:
Copy of Passport, Proof of address (utility bill dated within the last 3 months), CV, Personal Information form.
(ii) Legal entity acting as a director/ secretary:
Proof of company incorporation (recent and apostilled), Proof of company directors secretary shareholders and registered office (recent and apostilled), Copy of Memorandum and articles of incorporation (apostilled), Copy of passport and proof of address (recent utility bill) for each Director Secretary and Shareholder, Company Information form
Every company needs to have share capital and shareholders. There is generally no limitation in the amount of share capital for Cypriot companies and no thin capitalization rules. Typically, a company registered in Cyprus will have a share capital of €1000 which, accounting-wise, is offset with part of the registration costs.
Shareholders in Cypriot companies can get dividends as many times as they want to throughout a year, provided the company is making profits.
The shareholders have several powers reserved by law to them, including the ability to change directors with a simple majority vote.
Every company in Cyprus must have a Memorandum and Articles of Association which describes the powers and objects of the company and matters in relation to its administration. A company can have general objects to include any aspect of business.
However, for certain types of companies such as financial services, trustee, insurance, brokerage companies there are specific requirements for the contents of the memorandum and articles of association and a license has to be obtained by the Cyprus Securities and Exchange Commission (CYSEC).
The memorandum of association of a company provides the rules as to its governance and may be amended accordingly to permit for different procedures for appointing and changing directors, pre-emption rights, tag along and drag along rights etc. which are useful in joint ventures.
To prepare the memorandum and articles of association of a company in Cyprus without case-specific rules as aforementioned (i.e. in Companies without two shareholders acting in joint venture requiring different a, the following information is required:
• The objects and intended activities of the company;
• The amount and currency of the proposed Authorized and Issued share Capital of the Company (in most cases that is €1000); and
• The number of shares held by each shareholder.
Every company registered in Cyprus must prepare and file audited financial statements or a review engagement of its financial statements within 18 months of its registration and every year after that.
A review engagement is in essence a simplified audit, conducted by certified auditors in accordance with the applicable ISRE standards. It is applicable for Cypriot companies that do not exceed EUR200.000 annual revenue and don’t have EUR500.000 in assets for 2 consecutive years.
The Audited Accounts are also filed with the Income Tax Department. The Annual Return must be submitted to the Companies Registrar within 14 days of the day of the company’s annual general meeting which must not be later than 15 months from the date of the last Annual Return.
As the differences between a normal audit under the IFRS standards and a review engagement are not substantial, the cost between them does not differ substantially.
How we can help you incorporate a company in Cyprus online
After completing your company formation in Cyprus, you will need to take care of certain other matters to be up and running.
We can take care of all or any of these for you when registering your company in Cyprus to make the process as smooth and stress-free as possible.
Bank Account Opening
There are generally two options when it comes to opening a bank account in Cyprus for the company: The first one is to open an account with a traditional bank (such as the Bank of Cyprus, the Hellenic Bank etc.) and the second is to open an account with a fintech company.
The decision will vary according to time requirements for having an account, the amounts to be transferred and maintained in the account and the business of the company (as fintechs may have restrictions).
Opening a bank account in Cyprus will require the provision of certain personal and financial information. This is referred to as KYC (Know your Client) for the personal information (such as copy of passport, CV and utility bill) as well as the source and size of wealth and source of funds to be used. The process may take from a few days to several weeks depending on the circumstances and the banks in question.
Our experienced staff assist several clients open bank accounts and make the process smoother and faster for them.
You can read our complete guide on bank account opening here.
Tax and VAT Registration
A company registered in Cyprus and conducting business whether in Cyprus or abroad will need to register with the tax department. It will also need to register with the VAT authorities in certain circumstances.
Obligatory registration
a. If the value of the taxable supplies exceeds €15.600 in a year; or
b. If the taxable person provides taxable supplies to other taxable person in other EU Member States; or
c. If the total value of acquisitions from other EU Member States exceeds €10.251,61 in a year;
Voluntary registration
Α Cyprus Company that delivers supplies outside Cyprus which would be taxable supplies if delivered within Cyprus, is entitles to voluntary registration.
For the VAT rates in Cyprus you can see our guide here.
UBO Registry Cyprus
In Cyprus, all companies must submit detailed information about their Ultimate Beneficial Owners (UBOs) to the UBO registry, including each UBO’s full name, passport number or other identification, residential address, nationality, extent of ownership, and the date they became a beneficial owner.
This registry must be continuously updated to reflect any changes in shareholders or beneficial owners, including changes in personal information, transfers of shares, and cessation of ownership. Compliance with this requirement is mandated under Cyprus Companies Law and anti-money laundering (AML) regulations, with significant penalties for non-compliance.
Who is a Beneficial owner?
Under the AML law, a “beneficial owner” is any person who ultimately owns more than 25% of a company or legal entity, or otherwise controls the same, whether through ownership, directly or indirectly, of a sufficient percentage of shares, through voting rights or through any other means.
Immigration Permit Applications
If you plan on moving to Cyprus, securing the appropriate immigration permits is essential. For EU nationals, the “yellow slip” serves as a permanent residency permit, allowing you to live and work in Cyprus indefinitely
Non-EU nationals have two primary options: the annual (temporary) residency permit, known as the “pink slip,” which is renewable, or permanent residency, which can be obtained if specific criteria are met. Our team can assist you with the application process to ensure a smooth transition.
Click here to read more on Cyprus permanent residency and Temporary Residency.
Business Facilitation Units
The Cyprus Business Facilitation Unit (BFU) streamlines the process for foreign companies to establish and operate in Cyprus. Eligible companies include those with significant foreign investment, high-tech and innovation firms, shipping companies, and more.
Company Setup Assistance
The BFU assists with the necessary registrations, including company name approval, social insurance registration, and VAT and income tax registration. All required registrations can be completed within seven working days.
Licensing Support
The BFU provides information and support for obtaining the permits needed to establish and operate a company in Cyprus.
Fast-Track Residence and Work Permits
The BFU expedites the process for issuing residence and employment permits, particularly for high-skilled non-EU nationals, making it easier for companies to hire the necessary talent.
Our team can guide you through the BFU registration process to ensure your company benefits from these streamlined services.
Click here to read more on Cyprus Business Facilitation Unit (BFU)
Accounting and Audit
Cyprus law mandates that all companies maintain accurate accounting records and undergo an annual audit by a licensed auditor. Proper accounting and auditing are crucial for regulatory compliance and financial transparency.
Our firm offers comprehensive accounting and auditing services, including bookkeeping, preparation of financial statements, and conducting statutory audits. Our experienced accountants and auditors ensure that your company meets all regulatory requirements and maintains high standards of financial integrity.
Click here to read more on Accounting and Audit Obligations for Cyprus Companies
What our clients say about us
The team is always extremely helpful, responsive, and is happy to provide ongoing support with all possible questions and issues that might arise. They really give the feeling of caring about the clients and their interests, and I would highly recommend them for any legal support you might need in Cyprus.
MICHAEL BEKOVICH
– Data Analyst
I would like to express my sincere and heartfelt appreciation and gratitude for your highly professional and competent services at Polycarpos, provided in both a friendly and accessible manner. Penny took our complex case on board and made the impossible possible for us.
SINEAD LEAHY
– Informational Architect
Professional team dealing with every legal aspect of relocation to Cyprus: Immigration registration, Company setup, Bank account opening, Company financial reports, Etc. I used many of their services. Responses are fast, accurate and clear.
DAVID LEVY
– Company Director
Frequently Asked Questions
The investment in a Cypriot business is one of the qualifying investment areas. For more details on citizenship by investment see our guide.
Related Guides
Trademark Registration in Cyprus
A Trademark is an Intellectual Property Right which identifies the products or services rendered by a company and differentiates them from the products or services of the company’s competitors.
It plays an important role in the values of a business as it has the legal power to protect its goodwill and reputation.
Business in Cyprus: Work Permits for Foreign Investors
For the employment of a third-country national in the Republic a temporary residence and employment permit is necessary.
For a company to be qualified as a Company of foreign interests and to be eligible to employ third-country nationals in Cyprus must meet certain criteria.