A Step by Step Guide for Forming a Company in Cyprus

A Step by Step Guide for Forming a Company in Cyprus

Since the 2012 to 2013 financial crisis, Cyprus has recovered strongly. Tough reforms restructured the economy and the banking system, and the Cypriot economy has since returned to growth across its main sectors.

Cyprus’s position at the crossroads of Europe, the Middle East and Africa, and its full membership of the European Union since 1 May 2004, give entrepreneurs stability and security. Cyprus also offers international businesses a competitive tax system, experienced professional services, a wide network of double tax treaties, and a good place for families to live alongside their business.

 

Main Advantages

  • 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.
  • A standard VAT rate of 19%.
  • 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.

 

Procedure for registering / incorporating a Cyprus Limited Company

  • 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 and Articles of Association

    • Once the name is approved, provide the lawyer with the company’s planned activities, share capital and internal rules, so the Memorandum and Articles of Association can be drafted.

  • 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.

  • Board Members

    • Every Cyprus company must appoint at least one director and a company secretary. A majority of Cyprus resident directors who meet and take decisions in Cyprus helps the company show it is managed and controlled from Cyprus, which matters for access to double tax treaties. A Cyprus-based secretary is also recommended, so company documents can be signed without delay.

  • Registered Office

    • Every Cyprus company must have a registered office address in Cyprus.

 

Once the company name is approved and all documents are in order, registration usually takes 5 to 8 working days. We recommend a meeting with your tax consultant, accountant and auditor (members of the Institute of Certified Public Accountants of Cyprus, ICPAC) to discuss how the company will operate, including substance, bank accounts, VAT and tax registration, and social insurance registration.

Each year, the company must prepare audited financial statements and submit them with its tax return to the Cyprus Tax Department, and file an Annual Return with the Registrar of Companies. The former €350 annual company levy was abolished from 2024.

Before choosing a jurisdiction for your company, review all the tax and legal implications carefully with your business and tax advisers.

A Cyprus company is not an offshore company. It is an EU company, and Cyprus has consistently supported companies with international operations, which is why it remains an established financial and business centre in Europe.

 

We can help you form a Cyprus company that meets all the requirements of the Cyprus authorities.

For tax planning and a detailed analysis of your case, please contact us.

 

This article provides general guidance on forming a limited company in Cyprus. It is not tax or legal advice. We give tailored advice for each client’s circumstances.