Company Registration In Cyprus
The Republic of Cyprus is an island country located in the Eastern Mediterranean. With a population of about 1.2 million, it’s one of the most populous islands in the region.
Coupled with the large population, the country’s well-developed socio-economic structure and low corporate taxes make it an attractive market for doing business in Cyprus for foreign investors. If you’re considering expanding your business internationally, Cyprus is a good option owing to its stable economy, low labor cost, and affordable office rentals. CompyCo is dedicated to helping you leverage Cyprus’ profitability by providing a hassle-free process of company registration in Cyprus to you.
Contrary to popular belief the beautiful, picturesque sub-tropical island isn’t just lucrative for tourism and real estate sectors. Its strategic position in the Eastern Mediterranean makes it a world-class maritime shipping cluster that connects three continents, making it ideal for setting up a business in Cyprus.
Cyprus has established itself as an important energy hub, attracting leading gas and oil giants with its newly-discovered natural resources.
Forms Of Companies In Cyprus
- LLC—The Cyprus Private Limited Company
- PLC—The Cyprus Public Limited Company
- Investment Holding LLC—Holding Company
- Representative Office—Non-operating Branch
- Trust—The Cyprus and International Trust
- Free Zone LLC—Larnaca Free Zone
Benefits of Setting up a compnay in Cyprus for non-residents
• A company in Cyprus is considered as a respectable EU company
• 12,5% corporate tax rate, one of the lowest in the EU!
• One of the lowest VAT rates in the EU (19% or less)
• 0% tax on dividend payments (by the Cyprus company to its foreign shareholders)
• 0% on dividends received from subsidiary companies all over the world
• 0% tax on dividends received by a Cyprus company (on certain conditions)
• 0% tax on profits made from trading in own shares, shares of other companies or securities
• 0% taxes on outbound dividends, interests and royalties
• Cyprus companies can offset profits in one year against losses in any of the previous 5 years
• No thin capitalization rules, no exchange controls and no capital gains tax (except on real estate located in Cyprus)
• Double tax treaties are in place with EU countries, Russia, USA, Canada, China, India and a long list of other countries
What is the difference between LLC and PLC in Cyprus?
When setting up a compnay in Cyprus, companies might be considered limited by guarantee or by their shares. Either way, they can either be private or public.
The Cyprus Private Limited Company can have up to 50 members and may only have a single director. There is no minimum requirement for Share capital and it doesn’t have to be paid prior to company registration in Cyprus. However, recommendation is to pay it on the bank account once its opened in the amount of at least 1000 EUR.
The Cyprus Public Limited Company can have an unlimited number of members, but they must have a minimum of 7. The minimum number of directors required for such a company is 2, and there is no restriction on the transfer of company shares. The public limited company must acquire a trading certificate from the Cyprus Registrar of Companies before it can start trading. Before your company can issue its shares or debentures to the public, it needs to issue a statement in lieu of prospectus. Share warrants can also be issued by the public limited company.
If you opt for a Company Limited by guarantee, every member’s liability is limited to the amount agreed upon in the Memorandum of Association. If the company goes into liquidation, this amount must be contributed to its share capital.
Fundamentals Of A Limited Liability Company
Corporate tax in Cyprus | VAT in Cyprus |
|---|---|
12.5% | 19% |
Fundamentals of limited liability company in Cyprus
| Limited liability company | LLC |
| Minimum Share capital | 1 EUR |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | No |
| Bank signatory must travel | Mostly yes |
| Timescale for company formation | 10 days |
| Timescale for bank account opening | 7 days |
| Timescale for obtaining VAT number | 7 days |
| Statutory audit requirements | Yes |
| Shelf companies available | Yes |
How can I set up my company in Cyprus?
Setting up a company in Cyprus is an easy and straightforward process and we can do everything remotely.
The first step to getting your company off the ground is deciding which type of company suits the needs of your business activities. We will quickly coordinate all information between you and our licensed professionals in Cyprus and after the payment has been done, we’ll start the process.
There are various documents you’ll need to submit to finalize your company registration and doing business in Cyprus, some of them are:
- A registered Cypriot address
- Notarized copies of passports of every shareholder
- A document of approval of the company’s trading name
- Notarized Memorandum and Articles of Association of the company
- Identification papers of the company’s director(s) and secretaries
- We’ll also advise you about banking options once company registration in Cyprus is finalized. Finally, we’ll offer you accountancy and tax services and stay in direct contact with you for a long time.
More About Company Set Up In Cyprus
The process for setting up a company in Cyprus can be done within 2 weeks and without the need for traveling, all you need is the support of an experienced company to guide you.
CompyCo coordinates custom solutions along the way, providing you with consultations with our experts, engagement planning to determine the optimal company structure, and a range of services that’ll make the process efficient for you.
With the help of an extensive network of experts Internationally, we are finding solutions for your business needs after the compnay registration in Cyprus has been finalized. We’re able to provide you the insight you need to make your business overseas manageable easy while you are protected.
In case your business needs further authorisations, permits, the final step after company registration in Cyprus is acquiring the relevant license. We help you research, apply for, and obtain the necessary permits to get your company started in no time.
Bank Account Opening
Opening a bank account is essential to setting up your business in Cyprus. CompyCo’s expertise in Banking will help you to understand and decide which way to go. Opening your company’s banking account, in some cases, doesn’t require your presence. We coordinate the preparation and submission of documents on your behalf, keeping you updated and incorporating your feedback throughout the process.
Cyprus has both local and foreign international banks and there is a wide option for usage of online bank (EMI) account and we’ll help you narrow down which ones would be best for you depending on your business activities and needs.
CompyCo’s full range of banking solutions are tailored to your corporate banking needs, from completing the formalities and collecting documentation to representing you in account opening interviews.
Find out all about CompyCo’s representation in Cyprus and how their services can be taken advantage of by businesses.
For more information about opening a bank account, head over here.
Accounting & Taxation
The following are some of the accounting and taxes duties that must be taken into consideration as part of the Cost for Setting Up a Company in Cyprus:
- In Cyprus, the tax year corresponds to the calendar year
- Financial statements must be submitted in Greek to the Registrar of Companies every year. This includes digital copies of your company’s profit and loss account, an annex, and a balance sheet.
- All Cypriot companies must maintain books of the total payments they have received, any expenses they incurred, details of debt and credit, and total purchases and sales.
- There’s a flat income tax rate of 12.5% on all net income for tax residents in Cyprus. This tax rate also applies to branches of foreign companies as well.
The only difference is that these branches are exempted from branch tax payment remittances in Cyprus. Depending on your investing in Cyprus, company’s social security costs and other expenses, various deductions may apply. - The standard VAT rate in Cyprus is 19%. However, this can fall to 0%, 5%, or 12% based on the type of product or service your business has to offer. Certain goods and services are exempted from VAT payment.
- All invoices issued by business owners and traders in Cyprus must contain specific VAT information, this includes:
- The VAT number of the supplier (each company is issued a VAT number with the format of the country code CY, followed by a 9-digit number which ends with a letter)
- The VAT rate applied
- The amount of money collected as VAT
- Ready to get setting up a company in Cyprus? Look no further than CompyCo’s comprehensive guide for setting up a business there – let’s get those dreams off the ground!
How can you employ staff in Cyprus?
A combination of favorable business climate and an availability of various jobs make Cyprus an ideal place for both employers and employees. If you’re looking to employ a Cypriot resident while your when you set up in their jurisdiction, CompyCo can help you out.
Our experts have experience with securing quality, highly-trained employees in every country in the world and Cyprus is no exception. Using our incredibly high standard of evaluation, we shortlist the most suitable candidates for your business, as well as hire, onboard, and retain them on your behalf.
We coordinate with licensed local professionals to cover all aspects of employing and payroll. Whether you need to register your company as an employer to manage a full team, or simply engage one remote employee without establishing a local entity, we ensure the right solution is arranged through trusted partners. Our role is to simplify the process—aligning employment agreements, payroll management, and compliance requirements—so you receive clear guidance and consistent communication without the need to deal with multiple providers directly.
It doesn’t have to be difficult to Company Set Up In Cyprus! CompyCo’s expert-led guide will help you get it done quickly and efficiently with all the tips and tricks provided here.
Have any questions? Take a look at our HR services page for more information about our International HR services!