Company Registration in Cyprus: Key Requirements, Procedure, and Taxes
The Republic of Cyprus is one of the most advantageous jurisdictions in Europe for company formation, offering attractive corporate tax rates and a robust business and financial infrastructure. Registering a business in Cyprus provides an opportunity to operate on an international scale while benefiting from one of the most stable business environments in Europe.
Key advantages of registering a company in Cyprus include low tax rates, the option to establish a company without visiting the island, low operational costs, and the possibility of obtaining Cyprus residency for entrepreneurs.
With over 17 years of experience in Cyprus, we provide entrepreneurs with professional assistance in company registration, structuring, tax planning, and other legal matters. Establishing a business in Cyprus requires a professional approach, and it is essential to entrust this process to experienced specialists who understand the nuances of the jurisdiction and can offer tailored solutions for your success.
Turn to professionals—together, we’ll make your business in Cyprus a successful reality!
Top 7 Advantages of Registering a Company in Cyprus
- Low Tax Rates
One of the primary reasons to establish a company in Cyprus is its favorable tax system. With a corporate tax rate of just 12.5%—one of the lowest in the EU—alongside exemptions on dividends and interest, and benefits for companies in the intellectual property sector, Cyprus is particularly appealing for international businesses, startups, and IT enterprises. - Stable Legislation and EU Membership
Cyprus’ legal system is based on English common law, offering clear and predictable business conditions. While in the past, local companies were often perceived as “offshore,” today, Cyprus is a fully-fledged European jurisdiction with a transparent legislative framework meeting international standards. Company registration in Cyprus provides access to EU business opportunities, including the single market and streamlined customs procedures. - Wide Range of Industries and Business Scales
Cyprus accommodates businesses of all sizes and sectors, from international trade, logistics, and asset management to IT, financial services, and startups. The infrastructure supports growth, whether for SMEs, large corporations, or trusts. - Simple and Fast Registration Process
Foreign entrepreneurs can register a company in Cyprus remotely with the assistance of licensed Cypriot lawyers, making it particularly convenient for international businesses. - Ease of Business Communication
English is the primary language in Cyprus’ business environment, simplifying interactions with lawyers, banks, auditors, and other professionals. Additionally, many specialists in international companies in Cyprus speak languages such as Russian, Ukrainian, German, Greek, and French, making communication accessible and convenient for entrepreneurs from various countries. - Low Business Operating Costs
Business expenses in Cyprus are notably lower than in most EU countries. This includes affordable office rentals, employee salaries, and utility costs, allowing companies to optimize budgets while maintaining high-quality infrastructure and services. - Opportunity to Obtain Cyprus Residency
Cyprus residency programs cater to various categories of foreigners, including entrepreneurs, professionals, and those investing in the country’s economy or real estate. Learn more about how to legalize your stay on the island: How to Obtain Cyprus Residency Status.
Read our article “When a Cyprus Company Brings Maximum Benefits“ to learn about strategies for efficient business operations and making the most of all Cyprus has to offer.
Cyprus company types
Cyprus offers several business structures, each suited for specific purposes and activities. Below are the most popular types of companies in Cyprus:
- Private Limited Company (LTD)
This is a versatile business structure ideal for both local and foreign entrepreneurs. Such companies can be fully owned by foreign individuals or entities. Startups in Cyprus often register as private limited companies, making it the most suitable option for emerging businesses.
Key requirements for registering an LTD in Cyprus:
- Number of shareholders: A minimum of one and a maximum of 50. Shareholders can be individuals or legal entities.
- Company director: At least one director is required, who can be a resident or non-resident of Cyprus. To take full advantage of tax benefits, it is recommended to appoint a Cyprus-resident director.
- Company secretary: A secretary is mandatory and is usually a Cyprus resident to ensure compliance with corporate requirements.
- Registered office: The company must have a registered office address in Cyprus.
- Public Limited Company (PLC)
A public limited company is suitable for businesses aiming to raise capital through the sale of shares. Unlike private companies, PLCs can issue shares to the public, including listing them on the stock exchange. However, the requirements are more stringent: the minimum share capital is €25,630, and the company must have at least seven shareholders. Additionally, a minimum of two directors must be appointed for governance. - Trust in Cyprus
For asset management, a Cyprus trust can be established. Trusts are used not only for asset protection but also for business structuring and income distribution among beneficiaries. Moreover, Cyprus trusts offer a high level of confidentiality.
An initial consultation with legal experts in Cyprus will help you clearly define your business objectives, develop a strategy to achieve them, analyze tax optimization options, and select the most effective corporate structure for your business.
Cyprus business registration process
Company registration in Cyprus is governed by the provisions of the Companies Law (Cap. 113), which establishes the main rules for the creation, operation, and dissolution of corporate structures.
There are two ways to submit documents for opening a company in Cyprus: in person or via the official portal of the Department of Intellectual Property Registration. When submitting documents online, all papers must be certified by a qualified Cyprus lawyer.
Our company employs experienced, certified lawyers who oversee the entire company registration process in Cyprus, ensuring full compliance with legal requirements.
If you are interested in remote company registration in Cyprus, we can assist you throughout all stages: from initial consultation, document preparation, and lawyer certification to obtaining all necessary permits and providing ongoing services for your company, including accounting support. You can register your business in Cyprus without being physically present by entrusting the process to the professionals at our company.
Key Steps for Registering a Company in Cyprus
- Structuring the Company
Before registering a company, it’s essential to plan key structural elements: the type of company, name, registered address, and selection of a director and secretary. - Approval of the Company Name
The company name must be unique and comply with regulatory requirements. When submitting the application, up to three name options can be proposed, with approval typically taking 3–4 days. Once approved, the name is reserved for six months. - Preparation and Submission of Documents
At this stage, the essential company documents are prepared, including the memorandum, articles of association, application for company registration, registered office declaration, and the approved name permit. This step is crucial for successful registration and requires professional guidance to ensure full compliance with legal requirements. - Company Registration with the Department
Upon document verification, the registrar issues the following certificates:- Certified copy of the memorandum and articles of association
- Certificates of directors, secretary, and shareholders
- Certificate of the registered office address
- Certificate of company registration in Cyprus
- Post-Registration Steps for a Cyprus Company
- Corporate Bank Account: Essential for confirming the company’s management is based in Cyprus. Learn more in our article: Opening a Corporate Bank Account in Cyprus: Checklist for Companies.
- Tax Department Registration: Obtain a Tax Identification Number (TIN) and register for VAT if annual turnover exceeds €15,600.
- Acquiring Necessary Licenses: Register trademarks, patents, or other intellectual property rights if needed, or obtain relevant business licenses. For details, see our article: Which Businesses Require Licenses in Cyprus?
- Labor Authority Registration: If hiring employees, the company must register with the Ministry of Labor and Social Insurance.
We have outlined the main steps for registering a company in Cyprus. For a more detailed breakdown of each stage, including document preparation specifics, refer to our article: Step-by-Step Process for Opening a Business in Cyprus, where everything is explained in-depth.
Documents Required for Registering a Company in Cyprus
The list of documents needed to register a company in Cyprus can vary depending on factors such as the type of company, management structure, number of founders and shareholders, and specific business requirements.
Standard Document List for Registering a Business in Cyprus:
- Memorandum and Articles of Association: These must be prepared in Greek and certified by a licensed Cypriot lawyer.
- Company Registration Application (Form HE1): The official form submitted to the Department of Registrar of Companies.
- Registered Office Address Declaration (Form HE2): Specifies the official address where the company will be registered in Cyprus.
- Declaration of Director and Secretary Appointment (Form HE3): Confirms the appointment of individuals responsible for the company’s management and administrative functions.
- Company Name Approval Certificate: Verifies that the chosen company name has been approved and does not conflict with existing names.
- Copies of Passports of Founders and Directors: Notarized copies of the passports of all company founders and appointed directors.
- Proof of Residential Address for Founders and Directors: For example, utility bills verifying their current residential address.
- Specimen Signatures of Founders and Directors: Required for official documents and banking purposes.
Taxes for Companies in Cyprus
Cyprus offers one of the most advantageous and attractive tax systems in Europe. The key tax benefits in Cyprus include a low corporate tax rate, exemption from taxation on dividends and interest, as well as incentives for companies operating in the intellectual property sector.
These advantages make business registration in Cyprus particularly appealing for entrepreneurs looking to optimize taxation and successfully operate within the European Union.
The types and rates of taxes in Cyprus vary depending on the nature of the company’s activities, as well as the sources and scale of income.
If you plan to register a business in Cyprus and wish to optimize your taxes, our team of Cypriot lawyers, auditors, and accountants will provide a full range of services: from consultations to the preparation of reports and comprehensive support for your company’s accounting operations.
Key Taxes for Companies in Cyprus
| Type of Tax | Rate |
| Corporate Income Tax | 12.5%
For IT companies under the IP Box regime, the rate can be reduced to 2.5%. |
| Value-Added Tax (VAT) | 19% (standard rate)
Reduced rates: 9% and 5% Certain services: 0% |
| Tax on Dividend Income | 0% |
| Employer Contributions | 8.8% to the Social Insurance Fund
Additionally: 1.2% to the Unemployment Fund, 2% and 0.5% to the Social Cohesion and Development Funds, 2.9% to the General Healthcare System. |
| Capital Gains Tax | 20%
Applicable only to income from real estate located in Cyprus or shares of companies owning such property. |
Let’s take a closer look at the features of each type of tax and the available benefits:
- Corporate Income Tax Cyprus offers one of the lowest corporate tax rates in Europe at 12.5%. This is the primary advantage that attracts companies from various sectors.
Tax Benefits for IT Companies: To support innovative industries, Cyprus has a tax regime for income related to intellectual property (IP Box). If certain conditions are met, the tax rate for IT companies and intellectual property developers can be reduced to as low as 2.5%, making Cyprus one of the best jurisdictions for tech startups and large IT companies. Read more: Tax Benefits for IT Companies in Cyprus. - Value-Added Tax (VAT) The standard VAT rate is 19%. Reduced rates of 9% and 5% apply to specific categories such as tourism, medical services, and staple food items. A zero-rate VAT applies to exports, international transportation, and certain banking services. For example, Cyprus companies are exempt from VAT when trading with other companies within the EU, which makes such transactions more cost-effective and simplifies administrative processes.
- Dividends, Interest There is a 0% tax on income from dividends, interest, and other passive income, making Cyprus particularly advantageous for companies that use it as a platform to distribute dividends among shareholders or optimize investment income.
- Employer Contributions in Cyprus Companies are required to make contributions to social funds and the healthcare system based on employee wages:
• 8.8% to the Social Insurance Fund
• 1.2% to the Unemployment Fund
• 2% and 0.5% to the Social Cohesion and Development Funds
• 2.9% contributions to the General Healthcare System (GESY). - Capital Gains Tax This tax is only applied to income from transactions involving real estate located in Cyprus or shares of companies that own Cypriot real estate. The rate is 20%, but capital gains from the sale of foreign real estate are not subject to this tax.
Legal Services for Company Registration in Cyprus
Since 2007, Feod Group has been providing comprehensive services related to the establishment of companies, funds, and trusts in Cyprus. Our office, located in Larnaca, offers legal support for businesses in Cyprus, including:
- Preparation and certification of necessary documents by a lawyer
• Consulting on the selection of the optimal company structure
• Assistance in choosing a favorable tax regime for the company and its beneficiaries
• Filing documents for company registration
• Obtaining corporate certificates
• Provision of a legal address, secretary, and nominee services
• Company registration with tax authorities, including obtaining TIN and VAT registration
• Assistance with opening corporate bank accounts
• Submission of documents for obtaining licenses in Cyprus for various types of businesses
• Company administration and many additional services for your business and family
• Consulting and legal support on immigration and obtaining residence permits for entrepreneurs.
We would be happy to welcome you to our Feod Group office in Larnaca! Our specialists are ready to provide individual consultations, answer all your questions, and help develop optimal solutions for your business and personal projects in Cyprus.
Contact us today to schedule a meeting or get an online consultation!
Book a consultation
Also read:
- Cyprus strengthens its position as a hub for alternative investment funds
- What licenses are required for business in Cyprus
- Tax benefits for IT companies in Cyprus
- Opening a corporate bank account in Cyprus: checklist for companies
FAQ
• Low corporate tax rate (12.5%)
• Extensive network of double tax treaties
• Simple company registration process
• High level of asset protection
• EU membership, which simplifies access to the European market
No, Cyprus is not an offshore zone. The Republic of Cyprus is not listed in the “black” or “grey” lists of the European Union and OECD. This confirms that the country strictly adheres to international standards of transparency and financial compliance.
However, Cyprus is often referred to as a “European offshore zone” or “offshore in Cyprus” due to its low tax rates and favorable business conditions, which are traditionally associated with offshore jurisdictions. Cyprus has long lost its status as a “classic offshore” and offers attractive business registration conditions within international legal frameworks, making them fully legitimate.
To open a company in Cyprus, several steps need to be completed: choose a company name, prepare documents including the memorandum and articles of association, appoint a Cyprus company director and secretary, and submit the document package to the Department of Company Registration. We offer professional assistance at every stage to ensure the process is quick and convenient, including the option for remote registration.
You can open a business in any sector in Cyprus: IT and technology, international trade, investments, real estate, financial services, logistics, tourism. The flexible legislative framework and developed infrastructure make Cyprus an ideal location for startups, small businesses, and large enterprises.
Yes, it is possible to register a company in Cyprus remotely. All Cyprus company documents can be prepared and certified by a licensed Cypriot lawyer.
We offer a full range of services for remote registration, including document preparation, application submission, and obtaining all necessary permits.
Companies in Cyprus pay:
• Corporate tax – 12.5% (for IT companies under the IP Box regime – from 2.5%)
• VAT – standard rate 19% (reduced rates – 9% and 5%, some transactions – 0%)
• Dividend tax – 0%
• Social security contributions – 8.8% to the Social Insurance Fund, plus additional contributions
• Capital gains tax – 20% (only on real estate in Cyprus).
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Griva Digeni 49, Chrystalla Court 1st Floor Office 11, 6036 Larnaca, Cyprus
11B Lyuteranska St., off. 23, 01024
