How to Register a Company in Cyprus: A Step-by-Step Guide

Registering a company in Cyprus offers entrepreneurs numerous opportunities to conduct international business in a favorable and stable European jurisdiction. Cyprus provides attractive tax conditions, access to the European market, and ease of doing business, making it one of the best options for company formation. In this step-by-step guide, we will explore the key steps to starting a company in Cyprus and why this jurisdiction is considered one of the most beneficial for business.

Why Choose Cyprus for Company Registration?

Cyprus offers many advantages for foreign entrepreneurs, including:

• Low Tax Rates
  Cyprus provides favorable tax conditions: a corporate tax rate of just 12.5%, no taxes on dividends or interest income, and the beneficial Non-domicile status. Cyprus has also signed over 65 double taxation treaties with other countries, which is especially important for international income.
• Simplified Registration Process
  You can open a company in Cyprus remotely without being physically present, thanks to modern corporate legislation.
• Low Operational Costs
  Business costs in Cyprus are significantly lower than in other EU countries. Operational expenses, such as office rent and employee salaries, are 10-20% lower than the European average, making Cyprus an economically advantageous choice for establishing companies.
• Access to International Markets
  As an EU member, Cyprus provides companies with access to the single internal market, offering vast opportunities for business expansion in Europe. Registering a company in Cyprus allows you to operate within the EU market and take advantage of the European legal framework.

For more details, read: Benefits of Registering a Company in Cyprus.

Step-by-Step Process for Starting a Business in Cyprus

The process of opening a company in Cyprus generally consists of three stages: planning, registration, and post-registration steps.

Step 1: Consultation with a Lawyer

The first and most important step is consulting with Cypriot lawyers. Our Cyprus-based legal team will provide you with a personalized consultation to assess your business goals and how a Cypriot company can help you optimize taxes and structure your business. We can also conduct a comparative analysis with other low-tax EU jurisdictions such as Malta, Madeira, and the Canary Islands, as well as countries like Portugal, the UK, Spain, Italy, France, and Greece to help you choose the best location for your business.

Step 2: Planning the Structure

Before registering your company in Cyprus, careful planning of the business structure is crucial. This includes deciding on:

• Type of company
• Company name
• Registered office address
• Selection of directors and a secretary
• Shareholders and share capital
• Company objectives

Founders

In line with the Cyprus Companies Law (Cap. 113), both individuals and legal entities can act as founders, without restrictions on citizenship or residency. A company can have a single shareholder, with no upper limit on the number of shareholders.

Directors

A company must have at least one director, who can be either a resident or non-resident. However, for tax benefits, it is recommended to appoint a Cyprus resident as the director.

Step 3: Applying for Company Name Approval

Your company’s name must meet the requirements of the Cyprus Registrar of Companies and be officially approved. It should be unique and not misleading regarding the company’s activities. The name can be reserved for six months upon approval.

Step 4: Preparing Documentation

This step involves preparing essential documents, including:

• Memorandum of Association outlining company activities
• Articles of Association, governing internal company operations

Step 5: Submitting Registration Documents

After preparing the documents, they need to be submitted to the Department of the Registrar of Companies. The required documents include:

• Signed forms
• Founding documents
• Personal identification documents of directors, shareholders, and the secretary
• Proof of the registered office address
• An affidavit signed by a Cypriot lawyer

Step 6: Company Registration

Once the Registrar confirms compliance with all legal requirements, the company will be officially registered, and you will receive the necessary certificates, including:

• Certificate of Incorporation
• Director and Secretary Certificate
• Shareholders Certificate
• Registered Office Address Certificate

These documents are essential for confirming the company’s legal status and are required to begin its operations. They are used for opening a bank account, managing accounting, drafting contracts, and interacting with government authorities. Additionally, these certificates serve as proof that the company complies with Cypriot law and is ready for full operational activity both locally and internationally.

What to do after registering a company in Cyprus?

Once the company registration in Cyprus has been successfully completed, several important steps must be taken to ensure its full functionality and compliance with all legal requirements.

Step 7: Opening a Corporate Bank Account

To begin the company’s financial activities, it is necessary to open a corporate bank account in Cyprus. This is an important aspect, as having an account demonstrates that control and management of the company are conducted in Cyprus, granting eligibility for tax benefits.

We will assist you in selecting a bank and organizing the account opening process, ensuring your company can start its financial operations smoothly.

Step 8: Registration with the Tax Department

Every company is required to submit an application for registration with the Cyprus Tax Department and obtain a Tax Identification Number (TIN) within sixty days of its establishment. Additionally, any legal entity planning to reach a turnover of over €15,600 must apply for VAT registration.

Step 9: Appointing Accountants and Auditors

To meet all financial requirements and prepare annual financial statements, it is crucial to appoint qualified accountants and auditors right away. They will manage bookkeeping, monitor financial transactions, and prepare necessary reports for the Tax Department. This step is mandatory for companies operating in Cyprus, as regular reporting and auditing ensure transparency and compliance.

Step 10: Registration with the Ministry of Labour and Social Security

If you plan to hire staff, your company must be registered with the Ministry of Labour and Social Security in Cyprus as an employer. This is necessary to comply with labor laws and employee social insurance requirements.

After registration, you will be able to officially hire employees and provide them with all required social benefits in accordance with Cypriot legislation.

By following these steps, you can successfully register a company in Cyprus and take advantage of all the benefits this jurisdiction offers for conducting business.

Comprehensive Support from Feod Group in Cyprus Company Registration

Feod Group’s legal and consulting team provides full support at every stage of the company registration process in Cyprus, helping you choose the best legal structure and ensuring compliance with local and international regulations.

Our Services

Contact us for expert consultation and comprehensive support for your Cyprus company registration!

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