K.P.S. Services Ltd

Register a Holding Company in Cyprus

 

Cyprus is an EU member state with a transparent legal system based on English common law and a tax regime aligned with EU and OECD standards. That combination makes it a common choice for international groups looking for a holding company in Europe.

 

Opening a Holding Company in Cyprus

A Cyprus holding company is formed in the same way as any Cyprus limited company. Once the company name is approved and all documents are in order, registration usually takes 5 to 8 working days. The steps are set out below.


Company Name


Submit at least three alternative names, in Greek or Latin characters, so the Registrar of Companies can check availability. The word "Limited" is added at the end of the chosen name.

Memorandum of Articles and Association


Once the name is approved, provide our legal partners with the company's planned activities, share capital and internal rules, so they can draft the Memorandum and Articles of Association.


Shareholders


Every company needs at least one shareholder, who can be an individual or a company. The ultimate beneficial owner must be disclosed to the authorities under Cyprus and EU anti-money laundering rules.

Registered Office


Every Cyprus company must have a registered office address in Cyprus. We can provide this service.


Board Members


Every Cyprus company must appoint at least one director and a company secretary. A Cyprus holding company is tax resident in Cyprus from incorporation, unless a double tax treaty provides otherwise. To claim treaty benefits and avoid being treated as resident elsewhere, the board should be managed and controlled from Cyprus. In practice, a majority of Cyprus resident directors who meet and take decisions in Cyprus. A Cyprus-based secretary is also recommended, so company documents can be signed without delay.


Cyprus Holding Company Advantages

1. A Cyprus holding company enjoys all the tax benefits of any Cyprus limited company:

Corporate tax of 15% on taxable profits from 2026, in line with the OECD global minimum.

A legal system based on English common law, known for its transparency and reliability in business.

Dividends paid to shareholders who are not tax resident in Cyprus are not taxed in Cyprus.

A network of more than 65 double tax treaties.

No exchange controls, so the company can hold bank accounts in any currency, anywhere in the world.

Tax losses can be carried forward for seven years, and group relief is available.

2. Gains from the sale of shares, bonds and similar securities are exempt from tax, except for shares in companies that own real estate in Cyprus.

3. Dividends received from subsidiaries are generally exempt from tax. Conditions apply to some dividends from abroad.

4. Cyprus does not generally withhold tax on dividends and interest paid to non-resident shareholders, and royalties are taxed only when the rights are used in Cyprus. Exceptions apply to payments made to related companies in jurisdictions on the EU list of non-cooperative jurisdictions and, from 2026, to certain low-tax jurisdictions.


Cyprus Company Formation
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