Cyprus Company Registration
Registering a company in Cyprus offers numerous advantages, making it an ideal choice for international businesses:
- Competitive Corporate Tax Rate：
– Cyprus offers one of the lowest corporate tax rates in Europe at 12.5%
– The Intellectual Property (IP) Box regime in Cyprus can reduce the tax rate on qualifying IP income as low as 2.5%.
– Cyprus has established double taxation treaties with over 60 countries, minimizing the risk of double taxation and facilitating international trade and investment.
- Business-Friendly Environment：
– Cyprus boasts a stable economy, a skilled workforce, and a robust legal system, all of which contribute to a favorable business environment.
– Membership in the European Union and the Commonwealth provides businesses with access to extensive markets and potential preferential trade terms with other member states.
- Efficient Company Formation：
– The process of registering a company in Cyprus is straightforward and typically takes around 7-10 working days.
– Low Registration Fees and Minimal Bureaucracy.
- Access to EU Markets：
– Cyprus’ membership in the EU grants businesses access to a market of over 500 million consumers, offering substantial opportunities for expansion and trade within the European Union.
Process of registering a company in Cyprus
Incorporation of a company is a process that is undertaken by a lawyer who is specialised on the corporation law. To start the registration process, the lawyer will require the following documents on all directors, shareholders and beneficial owners of the company: Notarized copy of valid passport; Original or notarized copy of utility bill / bank statement (as verification of residential address, dated within three months); Original or notarized copy of Banker’s reference letter (dated within three months); Scan copy CV of the UBO; and Complete relevant application forms duly completed and signed. The process starts with a name approval by the Registrar of Companies. Once this done the lawyer proceeds with the relevant process which includes the application to be submited to the registrar of Companies for establishing a company.
Relevant details about the process and type of certificates that ate issued by the Registrar of Companies are below :
1
Full incorporation
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Fast-track company formation
3
Name check and approval
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Filling incorporation documents with the registrar of companies
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Filing of an English translation and provision of an English-certified MAA from the registrar
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Payment of government subscription tax on the authorised capital up to EUR 1,000
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Provision of registered office and registered address for one year
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Provision of company secretary for one year
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Registration with Cyprus tax department and obtaining of Cypriot tax number
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Rubber stamp
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A standard set of original corporate documents: Certificate of incorporation, Certificate of directors and secretary, Certificate of registered office, Certificate of shareholders, Memorandum and Articles of Association in English and Greek, Appointment of first directors, Share certificate, First minutes.
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Bank account pre-approval
- At least one shareholder is required (can be a foreign national).
- At least one director is required (can be a foreign national)
- A registered office is mandatory (can be the company’s office address).
- A company secretary is required (can be an employee).
Cyprus Visa
Entry requirements for Cyprus vary based on passport nationality. Some citizens may enter visa-free or enjoy exemptions, avoiding the need for a visa application.
Read moreCyprus Compliance Requirements
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Register with tax authorities to obtain a Tax Identification Number.
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Prepare minutes for Annual General Meetings.
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Conduct bookkeeping.
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Prepare audited Financial Statements annually in accordance with International Financial Reporting Standards (IFRS).
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Prepare and submit Annual Returns (HE32) accompanied by Financial Statements to the Registrar of Companies.
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Register for VAT and/or VIES if specific criteria are met.
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Submit relevant VAT forms quarterly (if registered for VAT).
- Company directors must ensure all records necessary for preparing financial statements are maintained as per Companies Law.
- All records must be kept at the Registered Office of the Company.
- Records must be updated within four months from the transaction date.
- Records should be readily available in case of investigation by authorities such as the Inland Revenue Department, VAT Service, and Social Insurance Services.
- There is an obligation to retain accounting records/proof for six years from the end of the relevant year for income tax and VAT purposes.
Register with Social insurance Social insurance Social insurance
Social Insurance one-time registration fee is EUR 70 per employee
To hire employees and add them to your company’s payroll, register with the Ministry of Labour’s Department of Social Insurance Services, submitting required forms and company certificates. You’ll receive a social insurance number and must make contributions of each employee’s salary, comprising: 8.8% employer’s social insurance, 2% social cohesion fund, 1.2% redundancy fund, 0.5% industrial training fund, 8% holiday fund, and 2.9% national health system (GESY) contribution.
Cyprus Corporation Tax
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Cyprus offers one of the lowest corporate tax rates in Europe at 12.5%.
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The Intellectual Property (IP) Box Regime can reduce the effective tax rate to as low as 2.5% on qualifying IP income, making it highly beneficial for companies engaged in innovation and intellectual property activities. You can apply to the Cyprus authorities for this exemption once certain criteria are met.
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Capital Gains Tax is 20%，applies to：
- Gains from the disposal of immovable property situated in the Republic.
- Gains from the disposal of shares of companies not listed on a recognised stock exchange which own immovable property situated in the Republic.
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The standard Value Added Tax (VAT) rate of 19% is applied to most goods and services in Cyprus
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Exemptions
- Services or goods provided by a VAT-registered company in Cyprus to an EU individual or company the supply is generally zero-rated for VAT purposes in Cyprus. This means that no VAT is charged by the Cypriot supplier.
- Services or goods provided by a VAT-registered company in Cyprus to a non-EU individual or company are generally not subject to Cyprus VAT. Therefore VAT is 0%
VAT Registration
- we assist you with the registration of VAT and obtaining VAT number.
Annual Maintenance Fees
Prices are subject to change, depending on cases.
The annual maintenance fees of EUR 1,150 plus VAT for a Cyprus company including:
- Provision of registered office and registered address
- Provision of company secretary
- Fee for holding of accounting records
- Annual disbursement in relation to printing and scanning
- Annual compliance fee
ADDITIONAL CHARGES
- UBO filing – EUR 180 plus VAT (Compulsory)
- VAT registration EUR 150 plus VAT
Applications often require a significant processing time. Processing times generally extend for at least four months or longer, depending on the applicant’s circumstances and the completeness of their documents.
