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CYPRUS

Cyprus Company Formation

Cyprus Company Formation

The formation of a Cyprus company is a fairly straight forward and quick process. The Cyprus company can start business operations and benefit from the many advantages Cyprus has to offer in a relatively short time period.

Advantages of Registering a Company in Cyprus

Taking into consideration and acknowledging the competition targeting Cyprus from other low tax or no tax jurisdictions, Cyprus continues to provide a complete value proposition for foreign investors as a financial and business centre. Numerous incentives and tax reasons for registering a company in Cyprus include:

  • Member state of the EU.
  • Modern tax regime acceptable by the EU.
  • One of the lowest corporation tax rates in Europe (12.5%).
  • Dividend income is exempt from corporation tax.
  • Effective tax on royalty income of 2.5%.
  • No capital gains tax on profit from sale of securities*.
  • No withholding tax on payments to non-residents (dividends, interest and royalties).
  • Only 20% of profits generated from IP rights (royalties) are subject to tax.
  • Wide treaty network and use of EU Directives.
  • Restructuring legislation in line with the EU Merger Directive extending to companies in non-EU countries.
  • Added commercial value and monetary benefits due to ability to register for VAT.
  • International business centre with efficient legal, accounting and banking services.
  • Advanced Telecommunications network and infrastructure.

The Cyprus Company at a Glance

  • Limited Liability Company (LTD).
  • Branch of an Existing Foreign Company.
  • Cyprus Holding Company.

The Cyprus Companies Law, CAP.113.

No, it is not required to visit Cyprus in order to register a company. Everything can be arranged online and we handle the whole procedure.

Desirable names are submitted to the Registrar of Companies for approval. It can take between 2-5 working days to obtain name approval. Name applications can be rejected due to similarity with Company names already registered. Company names must end with the suffix LTD or LIMITED.

After name approval, it usually takes 5-10 working days, depending on the workload of the Cyprus Registrar of Companies.

Yes, we do offer pre-registered Cyprus companies.  These can be modified in accordance to a clients preferences.

It is a requirement of a Cyprus Company to maintain a registered office in Cyprus. A physical address is needed and not a P.O. Box.

It is a requirement for the Cyprus Company to appoint a Secretary. This can either be a natural person or a legal entity, preferably a Cyprus resident, but can be of any nationality.

It is a requirement for the Cyprus Company to appoint at least one director. This can either be a natural person or a legal entity. The director must be a resident of Cyprus in order to meet residency criteria for tax purposes.

There is a minimum requirement of 1 Shareholder and a maximum of 50. The same person or legal entity can act as Shareholder, Director and Secretary.

There is no minimum share capital requirement to register a Cyprus company.  The usual share capital for practical purposes is 1000 shares of €1 each.

Yes, as Cyprus is a member of the EU it has harmonised its legislation with the EU. On 18 February 2021, the Cypriot Parliament approved the Prevention and Suppression of Money Laundering (Amendment) Law 2021 bringing the Cypriot AML regime in line with its EU obligations by implementing the requirements of the EU’s Fifth Money Laundering Directive 2018/843.

The Memorandum & Articles of Association, Shareholder, Director, Secretary and Registered Office. The identity of the Beneficial Owner can be protected through the use of Nominees. However, it is now a requirement for companies to submit the UBO details to the Beneficial Owners Register of Companies.

Even though there is no requirement for a Cyprus company to maintain a bank account in Cyprus, in cases where the company does have physical presence and the UBO is located in Cyprus, we do provide bank account opening services with local Cyprus banks. In all other instances we open accounts with Electronic Money Institutions (EMI’s).

Depending on the type of bank account it can take between 7 – 28 working days for the account to be opened.

Annual Government Fees & Obligations of a Cyprus Company

The annual fee to keep a Cyprus company active is €350 and is payable by the 30th of June of each year of operation to the Companies Registrar. This can be done via the online portal or via your services provider.

An annual return (HE32) must be prepared once every year, within 12 months from the previous annual return.

Annual reports and audited financial statements have to be submitted online to the Cyprus Company Registrar Department 28 days after the end of the fiscal year.

A Cyprus Company must register with the Tax department and obtain a Tax Identification Code (TIC) within 60 days after the registration date of the Company.

The Company’s annual tax return must be submitted within 15 months of the year end.

The yearly corporate tax is paid in 3 instalments on the 31st of July, the 31st of December and on the 30th of June of  the following year.

Every Cyprus registered company must keep accounting records and prepare audited financial statements.

Taxation of a Cyprus Company

Currently the tax rate of a Cyprus company is a uniform 12.5% on profits.

Yes, please contact us for a full list of countries with which Cyprus has entered into Agreements for the avoidance of Double-Taxation.

Cyprus Company Formation Cost

INCORPORATION FEES Prices in Euros (€)
Company Registration Fee€450
Fee includes:
– Government fees
– Preparation and filing of all necessary paperwork to Registrar of Companies
– Certificate of incorporation
– Certificate of directors and secretary
– Certificate of registered office
– Memorandum and Articles of Association
– Share certificates
– Rubber company seal
– Appointment of first directors
– Register of Directors and Members
– First Company Minutes
Company Name Application€50
Express Incorporation Fee€300
VAT Registration€250
Tax Identification Code (TIC)€150
CORPORATE PACKAGE TOTAL €1200
ANNUAL FEES (if required)
Secretary €250
Registered office€250
Nominee shareholder€300
Nominee director (Legal Entity)€600
Nominee director (Natural Person)€1000
ADDITIONAL SERVICES (if required)
AML compliance fee€300
Apostille of company certificates (each) €300
Apostilling of other documents (per document) €150
Power of attorney €150
Certificate of good standing €150
Certificate of incumbency €100
Amendment of company documents (per document) €200
Change of name €200
Tax residence certificate with apostille €250
VIES registration €100
Preparation and submission of HE32€350
Courier (at cost) ---

All of the above prices are exclusive of 19% VAT.

Company Formation in Cyprus
Cyprus Company Registration - Open Company in Cyprus

Registering your Cyprus Company is fast and simple with us.  We offer competitive fees with no hidden costs.  In addition, our law firm offers nominee services for full confidentiality.

We can complete your Cyprus company registration in about 8 days.  A Cyprus company can open a bank account in any jurisdiction and we provide assistance if needed.