✓ Company registration in Cyprus ✓ Bank account opening ✓ Relocation of business and employees to Cyprus ✓ Substance requirements organization ✓ Tax optimization and change of tax jurisdiction ✓ Obtaining a residence permit in Cyprus for the whole family
If you are in Cyprus and you require our advice or support for your case, leave us a request or call the Feod Group office in Larnaca + 357 99 849 525 (WhatsApp)
Registration of a company in Cyprus
Cyprus has been developing rapidly in recent years, increasing its potential to attract international investors and entrepreneurs.
Economic and political stability, a progressively developing infrastructure, great weather all year round and the hospitality of the local people, as well as a strong legal and regulatory framework, make Cyprus the destination of choice for many foreigners to move and for business and family.
Cyprus is regarded “The most convenient jurisdiction for European business”.
Why companies register in Cyprus
✓ Legal system of Cyprus The regulatory framework of Cyprus is based on the principles of English common law and is in line with the laws of the European Union, the requirements of the Organization for Economic Co-operation and Development (OECD), FATF and FATCA, which is understandable and transparent for the operation of international business. Therefore, Cyprus is not a classic offshore, as was previously believed. Cyprus is not on the “black” lists of the European Union and the OECD.
✓ Cyprus is the center of business and business activity Cyprus is located at the crossroads of Europe, Asia and Africa, close to trade routes linking these continents. This strategic location makes Cyprus a business center with many services on offer, including a Cyprus Company allowing you to conduct your business throughout the European Union with an international reach.
✓ Efficient tax regime The Cyprus tax system offers numerous incentives for both legal entities and individuals (Non-domicile tax status). – The corporate tax rate is 12.5% and is included in the rating “The lowest corporate tax rates in the European Union”. – The tax-free minimum income tax is 19,500 euros/year. – Tax credits for income in the form of dividends, interest income, profits from the sale of securities, etc. – Network of international agreements for the avoidance of double taxation.
✓ Ease of opening and running a business The corporate legislation that governs the opening and doing business in Cyprus gives the right to a foreign citizen to start a business in Cyprus, and the registration process takes a minimum of time compared to many EU countries and does not require presence on the island. You can register a company in Cyprus remotely.
✓ Absence of language barriers Cyprus is characterized by the use of English as the primary language in the business environment, which greatly simplifies operations and ensures comfortable support for entrepreneurial activities. Additionally, many professionals are proficient in languages such as Russian, Ukrainian, Greek, German, and French. This diversity of linguistic skills among professionals on the island makes Cyprus an attractive platform for conducting international business.
✓ Skilled workforce Cyprus has the youngest population in the European Union of skilled and experienced professionals with good education and knowledge of several languages.
✓ Cyprus resident status Entrepreneurs and investors, as well as their family members, can apply for a residence permit in Cyprus and become a resident of Cyprus under several programs: – Cyprus Resident Status for Cyprus Company Owners (Business Immigration) – Residence permit in Cyprus for financially independent foreigners – The investment program of Cyprus, which is called the “Golden Visa of Cyprus” or “Cyprus Residence Permit for Investment” when buying property from 100 thousand euros in category F or investing from 300 thousand euros in real estate, business and funds – the Fast Track program.
✓ Cyprus is a great place to move as a family with children When relocating or opening their business in Cyprus, entrepreneurs also consider the island as a place to relax or live with their families. For a short stay or relocation, Cyprus provides a huge number of advantages, some of them:
– The World Health Organization has rated Cyprus as one of the healthiest countries in the Mediterranean. – Cyprus is also one of the countries with the lowest levels of air pollution in the European Union. – Cyprus is one of the safest places in Europe to live, with an extremely low crime rate. – The island has a wonderful climate with more than 300 sunny days a year, an abundance of the best and cleanest beaches in Europe, recreation areas, fresh vegetables and fruits. – Cyprus has one of the best private education sectors in Europe with a large selection of schools that teach programs in English. – The real estate market is actively developing and offers both residential real estate, ranging from apartments to villas on the seafront for living or relaxing with the whole family, or for investment purposes.
Registering a company in Cyprus offers entrepreneurs a wide range of legal structures depending on their goals and the scale of their operations. For a successful registration process, it is recommended to consult our legal experts to choose the most suitable structure and comply with all legal requirements.
Here are the most popular business structures:
Private Limited Company (LTD) A Private Limited Company is the most sought-after type of company in Cyprus due to its versatility, flexibility, and minimal requirements. This structure is ideal for most business types, including trade, services, IT, and real estate. Key features of an LTD include a minimum of one shareholder and a maximum of 50, making it suitable for single owners or small investor groups. There is no formal minimum share capital requirement, which simplifies registration and reduces initial costs. Owners of an LTD can use it for working with international partners, signing contracts, and managing asset transactions.
Public Limited Company (PLC) This structure is suitable for large businesses aiming to raise capital through public investments. Establishing a PLC in Cyprus requires at least two shareholders, two directors, and a qualified company secretary. The minimum share capital must be at least €25,630, with 25% paid before registration. PLCs must maintain strict financial reporting and submit annual reports in line with international standards. Such companies are regulated by the Cyprus Securities and Exchange Commission (CySEC) and must adhere to transparency and disclosure regulations.
Branch of a Foreign Company A branch of a foreign company is registered when a parent company wishes to expand its operations to Cyprus. While the branch operates as a separate entity, the parent organization assumes full responsibility for its obligations. Registering a branch enables the transfer of employees from the parent company to Cyprus under the Intra Company Transfers (ICT) program, simplifying the process of obtaining residence permits for management and key personnel.
Cyprus International Trust A Cyprus International Trust is a mechanism for managing assets on behalf of beneficiaries. The settlor transfers assets to a trustee, who manages them in the interest of the beneficiaries. Trusts can conduct business both in Cyprus and abroad. This structure is used for asset protection, tax planning, and estate management, offering high confidentiality and legal protection.
Sole Proprietorship This is suitable for individuals planning to run a business in Cyprus independently, without hiring employees. It is a simple structure where the entrepreneur is personally responsible for the business’s obligations, and income is taxed under personal income tax rates ranging from 0% to 35%. This structure is ideal for small-scale projects.
Before starting the company registration process in Cyprus, it is essential to define the key aspects and parameters of your future business. This preparation helps ensure all necessary documents are in order and complies with legal requirements.
Type and Purpose of the Company Select the legal structure that aligns with your business goals. The most common choice for international entrepreneurs in Cyprus is a Private Limited Company (LTD). Clearly outline the primary activities and objectives of your company. These details will be included in the foundational documents (Memorandum and Articles of Association) and may be required to obtain licenses or permits for certain activities.
Participants and Share Capital Determining the participants and the share capital structure is a crucial step. The minimum share capital is typically €1,000, but this amount can be increased depending on the company’s plans. It’s also important to define the ownership shares allocated to each shareholder in advance.
Director and Secretary Every company must have at least one director and one secretary. The director can be a resident or a non-resident of Cyprus; however, having a resident director is recommended to meet the requirements for economic substance and to qualify for tax benefits. The secretary is responsible for maintaining corporate documentation and may be a nominee provided by a legal firm.
Company Name Selecting a name for your company in Cyprus is also important. The name must be unique, not identical to any existing registered companies, and must end with “Limited” or “Ltd.” The chosen name is subject to review and approval by the Department of the Registrar of Companies.
Registered Office Address A registered office address is a mandatory requirement. This can be a rented office space in Cyprus or an address provided by a legal or audit firm managing your business. The registered office serves as the official address for receiving correspondence.
Procedure for Registering a Company in Cyprus
Approval of the Company Name You can submit up to three potential names in your application to increase the likelihood of approval. The review process typically takes 3–4 business days. Once approved, the selected name is reserved for up to six months, allowing sufficient time to complete all registration procedures.
Preparation and Submission of Documents The preparation and submission of documents can be done either in person or online via an accredited lawyer in Cyprus. For remote registration, the lawyer manages all necessary actions, including verifying the uniqueness of the company name, preparing the founding documents, and submitting the registration application through official online platforms. This option is particularly convenient for international entrepreneurs seeking a swift and hassle-free registration process without visiting Cyprus.
Company Registration with the Department After reviewing all submitted documents, the Registrar issues official certificates confirming the completion of the registration process. These include a certified copy of the founding documents (Memorandum and Articles of Association), certificates of appointment for directors, the secretary, and shareholders, as well as a certificate of the registered address and a general certificate of incorporation. These documents authorize the company to operate under Cypriot law.
Opening a Corporate Bank Account To confirm that the company operates in Cyprus, a corporate account must be opened with a Cypriot bank.
Tax Registration The company must obtain a Tax Identification Number (TIN) and register as a VAT payer if its turnover exceeds €15,600.
Obtaining Licenses If the business involves licensed activities, registration of trademarks, patents, or other intellectual property may be required, along with obtaining specific permits.
Registration with Labor Authorities Companies planning to hire employees must register with the Ministry of Labor and Social Insurance to fulfill obligations toward their staff.
Timeframe for Company Registration
The company registration process in Cyprus typically takes up to 30 days, depending on the complexity of document preparation and the promptness of submission. This period includes verifying the uniqueness of the name, approving the founding documents, and entering the company into the state registry.
Corporate lawyers in Cyprus provide comprehensive services for business legal support, from consultations to management. To calculate the cost of registering a company in Cyprus, complete the form below.
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Corporate taxes in Cyprus
A company is tax resident in Cyprus if: – managed and controlled from Cyprus; or – the company is registered in Cyprus, but managed and controlled from outside Cyprus, provided that the company is not a tax resident of any other country (applies from December 31, 2022).
Companies that are tax residents in Cyprus must pay tax on their worldwide income. In accordance with the requirements of the Organization for Economic Co-operation and Development (OECD), a Cypriot company can claim all the tax benefits of Cyprus, the Cyprus double taxation treaty, in the event that the company is a tax resident of Cyprus.
Non-resident companies are subject to tax on profits derived from commercial activities carried out through a permanent establishment in Cyprus, as well as on certain types of income received from sources in Cyprus.
BASIC TAXES IN CYPRUS
Corporate tax in Cyprus Cyprus has a flat corporate tax rate of 12.5%
Value Added Tax (VAT) It is charged on the supply of goods and services in Cyprus, as well as on the purchase of goods from the European Union and the import of goods into Cyprus. – Standard VAT rate – 19% – Reduced rates – 9%, 5% – 0% on a number of goods and services defined by law, for example, the supply of certain medical goods, most banking and insurance services.
Employer contributions – 8.8% of the employee’s salary to the Social Insurance Fund. The rate will increase every five years until it reaches 10.7% on January 1, 2039. – 1.2% to the unemployment fund — 2% and 0.5% for social cohesion and learning development funds. — 8.0% — Vacation fund (exemption from contributions is possible).
Dividends, interest 0% on income from dividends, interest and other passive income, regardless of whether the income is received in Cyprus or worldwide.
Capital gain Applies only to income relating to immovable property located in Cyprus. A rate of 20% is charged on income from the sale of immovable property located in Cyprus or from the sale of shares in companies owning immovable property located in Cyprus. The first 17,086 € are tax free. Capital gains tax on the sale of real estate located outside Cyprus – 0%
All companies registered in Cyprus are required to prepare and submit the following annual reports:
Audited Financial Statements — These are prepared by an independent auditor to confirm the accuracy of the company’s financial records.
Tax Return — Every company in Cyprus must file an annual tax return, detailing income, expenses, tax liabilities, and other financial indicators.
Statistical Report (Company Returns) — Submitted to the Registrar of Companies, this report provides information about the company’s activities and financial status.
The fiscal year for Cypriot companies aligns with the calendar year, from January 1 to December 31.
Cyprus company law requires directors to maintain proper accounting records to support the preparation of financial statements. These records must accurately reflect the company’s operations and allow the financial position to be determined at any given time. Supporting documents, such as contracts and invoices, should also be kept.
Auditors have the right to request any additional information needed to prepare the financial statements.
Deadlines for Report Submission
Financial Report — Must be submitted to the Registrar of Companies by December 31 of the year following the reporting period.
Tax Return — Must be submitted to the Cyprus tax authorities by March 31 of the year following the reporting period.
Statistical Report — Must be submitted to the Registrar of Companies by August 31 of the year following the reporting period.
Penalties for Late Submission
Failure to submit reports on time may result in fines ranging from €500 to €5,000.
Corporate reporting is a crucial document that provides governmental bodies, investors, and other stakeholders with insights into the company’s financial status. Timely and accurate preparation of reports is mandatory for all Cypriot companies.
We offer comprehensive accounting services for companies in Cyprus, including professional bookkeeping, preparation and timely submission of reports, and detailed tax consultation.
Company Redomiciliation to Cyprus
Redomiciliation is the process of transferring a company’s registered office from one jurisdiction to another while retaining all assets, rights, obligations, and business relationships. The company continues to exist as a legal entity but changes its country of registration. This procedure is particularly relevant for companies registered in offshore jurisdictions that seek to enhance their legal status and credibility among international partners.
Cyprus legislation allows for both the relocation of companies to Cyprus and their movement out of its jurisdiction. The process requires meeting specific conditions, such as obtaining redomiciliation approval in the company’s original registration country and preparing the necessary documentation, including the articles of association, memorandum, and documents confirming the current legal status of the company.
For companies relocating from offshore jurisdictions to Cyprus, it is essential to consider all legal and tax aspects. Corporate law specialists can ensure the process is correctly organized.
If you wish to relocate your company to Cyprus or learn more about the redomiciliation procedure, consult with our accredited lawyers.
Assistance of Feod Group in the process of company registration in Cyprus
Cypriot lawyers of Feod Group accompany their clients relating to the purchase or registration of a business in Cyprus, and provide a full range of services for obtaining a residence permit for the entire client’s family.
✓ company registration in Cyprus ; ✓ services for the preparation of applicants’ documents confirming the source of funds; ✓ assistance in opening bank accounts in Cyprus; ✓ analysis of the corporate structure and issuance of recommendations on tax issues and asset protection; ✓ services for obtaining the status of a tax resident of Cyprus; ✓ real estate services: rent or purchase of residential and commercial real estate, complete verification of the purity of the transaction, preparation of contracts, participation in negotiations with owners or sellers of real estate; ✓ applying for residence permits and representing the interests of clients and their family members; ✓ enrollment services for children in secondary schools and universities in Cyprus. ✓ after moving to Cyprus: business consulting, extension of stay in the country, obtaining a permanent residence permit and citizenship of Cyprus.
How Can a Ukrainian Citizen Open a Company in Cyprus?
There are no restrictions on company registration in Cyprus for foreigners, including Ukrainian citizens. To register a company in Cyprus, you need to complete the standard registration procedure:
Obtain a foreign taxpayer identification number (TIN).
Choose and register the company name.
Open a bank account and deposit the share capital.
Have a registered legal address.
Appoint a director.
Register the company with government and tax authorities.
Can You Register a Company in Cyprus Without Being Present?
Yes, personal presence is not required for company registration. We offer services for remote company registration in Cyprus.
Is a Company in Cyprus Considered Offshore?
Cyprus legislation fully complies with the requirements of the European Union, the Organisation for Economic Co-operation and Development (OECD), FATF, and FATCA. As such, Cyprus is not an offshore jurisdiction, and companies in Cyprus do not hold offshore status. Therefore, phrases like “offshore company in Cyprus” or “open an offshore in Cyprus” are rarely used.
How to Open a Bank Account in Cyprus?
To open a bank account in Cyprus, the following steps must be completed:
Collect and prepare the client’s personal profile documents.
Obtain preliminary approval from the bank.
Fill out bank questionnaires and forms.
Attend an interview with a bank representative and submit the documents. Online identification and interviews are also possible.
Can You Obtain Residency Through Opening a Company in Cyprus?
Yes, opening a company in Cyprus can make you eligible for residency. Depending on the company structure and your role in it, you may qualify for different residency categories.
What Is the Cost of Registering a Company in Cyprus?
The government registration fee for a company in the Trade Register is approximately €350.
Legal fees for company registration start at around €1,500, excluding additional services.
Additional Services:
Opening a bank account.
Organizing real economic presence in Cyprus (Substance in Cyprus).
Recruitment services.
Assistance in obtaining work permits.
Services for obtaining Cyprus tax residency status.
Drafting trust agreements, and more.
Please leave us a request, and we will calculate the cost of services for you.
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes in immigration and corporate law of European countries, particularly:
Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.
The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.
Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.
We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.
