Company registration in Cyprus is a convenient tool for international trade and for setting up holding structures, thanks to EU membership, a predictable common law legal system, an extensive network of double taxation treaties, and flexible corporate rules. Below are the main company types, requirements, and timelines.
Cost of services
| Service Description | Without nominee services | With nominee services |
|---|---|---|
| Company incorporation / Shelf (ready-made) company | ✓ | ✓ |
| Registered office address for 1 year | ✓ | ✓ |
| Set of documents with Apostille | ✓ | ✓ |
| Filing of Beneficial Ownership Register | ✓ | ✓ |
| Corporate seal | ✓ | ✓ |
| Sending of documents | ✓ | ✓ |
| Nominee services (director, shareholder – residents of Cyprus), issue of power of attorney with Apostille | ✓ | |
| Total cost of registration | €3500 | €5150 |
| Annual maintenance | €1350 | €3150 |
All companies in Cyprus are also obliged to pay annual state duty in the amount of EUR 350 (before the 30th of June each year).
Additional services
| Service Description | Cost |
|---|---|
| Company name check (other than from the pre-approved names list) | €120 |
| Certificate from the Register of Companies | €350 |
| Tax residency certificate (for avoidance of double taxation) | €550 |
| Additional power of attorney | €400 |
| VAT and/or VIES registration for a company | upon request |
| Arrange for audit for a dormant company | from €1000 |
| Setting up a real presence (substance) of a company | upon request |
| Cost of accounting and auditing services depends on number of transactions and turnover of a company and can be defined basing on the results of the first year of company’s activity. |
Main advantages of Cyprus
- One of the lowest corporate tax rates in Europe (12,5%);
- Cyprus is not considered an offshore zone;
- Membership in the European Union (from 2004) and Eurozone (from 2008);
- Sustainable corporate and tax legislation;
- Favorable regime for holding companies: dividends received by a Cypriot company are exempt from corporate tax;
- Good opportunities for real business;
- Treaties for avoidance of double taxation with more than 50 countries.
Company registration in Cyprus
The main forms of business in Cyprus:
- Limited company (public or private);
- Partnership (general or limited);
- Branch of a foreign company;
- Individual entrepreneurship.
Private companies limited by shares are the most popular in international business.
Company name is subject to prior approval by the Registrar of Companies. It must not be identical or closely similar to the name of an existing company incorporated in Cyprus (other restrictions also are in place). Due to a great number of the previously used names the choice of name may appear quite difficult, so it is recommended to develop several name options in advance. This will save time and increase chances of name approval. Use of certain words (e.g. those which indicate brokerage, depositary, trust and other financial activities) will require a special license.
Share capital. There are no legal requirements in respect of the minimal amount of share capital. At least one share must be issued and paid. Share capital must be nominated in euros.
Both individuals and legal entities of any residence and nationality may be the directors and shareholders of a company. A company must have at least one shareholder and one director. A company secretary is also required.
The information on company directors, shareholders, secretaries and registered office is publicly available. While the information on beneficial owners is confidential and is subject to disclosure only in cases provided for by law.
A company must have its registered office in Cyprus.
A Company may open bank accounts both in Cyprus and abroad.
A new Cypriot company registration process usually takes about 4 weeks.
Redomiciliation (change of jurisdiction)
The Companies Law allows foreign companies to be redomiciled in Cyprus (i.e. to register as a company continuing its business in Cyprus). Cypriot companies, in their turn, may change Cyprus to other jurisdiction (provided that the law of such jurisdiction allows it as well).
Reporting requirements
1. All companies incorporated in Cyprus must keep their accounting records, prepare and file audited annual financial statements.
A standard accounting period of a company is a calendar year. Financial statements for the past year must be filed with the Registrar of Companies before 31 December of the following year.
If a company was incorporated in the second half of a year (after 1 July), its first financial statements may be prepared for a period up to 18 months (i.e. for the remainder of the current year and all the following year).
While a company incorporated in the first half of a year (before 1 July) must prepare its first financial statements for the period from the date of incorporation to the end of the current year, and file it in the following year.
2. Cypriot companies must file annual return containing information on the registered office, current members, directors and secretary, share capital and some other data.
3. Companies also must file tax assessments and tax returns in time prescribed by the tax legislation of Cyprus.
Corporate Taxation in Cyprus
The key features of corporate taxation in Cyprus that are most significant for business include:
- Corporate Tax Residency: Companies are recognized as tax residents if their management and control are exercised in Cyprus, or if they are incorporated in Cyprus.
- Tax Rate: The corporate tax rate in Cyprus is 15% (effective from 2026; previously 12.5%), remaining one of the lowest in Europe.
- Dividend Exemptions: Dividends received from foreign or Cypriot companies, as well as income from the sale of securities, are generally exempt from corporate tax.
- Withholding Tax: As a general rule, dividends, interest, and royalties paid to non-residents are exempt from withholding tax in Cyprus. Exceptions apply to countries on the EU blacklist or low-tax jurisdictions.
- DTT Network: Cyprus has Double Taxation Treaties (DTTs) with more than 70 countries.
- Value-Added Tax (VAT): The standard VAT rate in Cyprus is 19%, with reduced rates of 9% and 5%. Upon reaching the threshold for taxable transactions, VAT registration and the filing of VAT returns are mandatory.
- Anti-Avoidance Measures: Cyprus enforces transfer pricing rules, interest deduction limitations, country-by-country reporting (CbCR), and disclosure requirements for cross-border transactions. The jurisdiction participates in the Automatic Exchange of Financial Account Information (AEOI).