Company Formation & Registration
Cyprus Company Formation
Cyprus is a prime destination for businesses worldwide, thanks to its attractive tax benefits and extensive exemptions. The company formation process is straightforward and efficient, allowing you to start operations within a week. It begins with securing name approval, which takes just a few working days, followed by company registration, typically completed within a week.
Cyprus law also offers flexibility for relocating business headquarters to or from the island. This enables investors, entrepreneurs, and international corporations to establish tax residency in Cyprus and take advantage of its favourable tax regime.
Different Types of Companies in Cyprus
What is a Private Limited Company (LTD) in Cyprus?
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A Private Limited Company (LTD) is the most common business structure in Cyprus, offering flexibility, legal protection, and a favorable tax regime. It is a separate legal entity from its owners, meaning shareholders are only liable for the amount they invest. This type of company is commonly used for trading, investment, and holding purposes, making it a popular choice for local and international entrepreneurs.
Who is it for?
A Private Limited Company in Cyprus is ideal for:
- Entrepreneurs and startups looking for a cost-effective corporate structure.
- Small and medium-sized enterprises (SMEs) wanting limited liability protection.
- International investors and business owners seeking a favorable tax jurisdiction.
- Businesses involved in trading, consultancy, IT services, e-commerce, and more.
- Companies aiming to benefit from Cyprus’s extensive double tax treaties.
Number of Members Required
- A Private Limited Company (LTD) in Cyprus requires at least one shareholder and can have up to fifty shareholders.
- The company must also have at least one director (who can be the same person as the shareholder) and a company secretary.
- Both individuals and corporate entities can be shareholders or directors.
Key Characteristics of a Private Limited Company in Cyprus
- Limited Liability: Shareholders’ liability is restricted to their share capital investment.
- Separate Legal Entity: The company is legally independent of its owners.
- Low Corporate Tax Rate: Cyprus offers a competitive 12.5% corporate tax rate.
- No Minimum Capital Requirement: There is no set minimum share capital requirement, but €1,000 is often used for practical purposes.
- EU and International Access: Companies in Cyprus benefit from the country’s EU membership and extensive double tax treaties.
- Privacy & Confidentiality: Shareholder details can remain confidential through nominee services.
- Simple and Fast Registration: Company formation is straightforward, usually taking 7–10 business days.
- Annual Compliance Requirements: Companies must file annual returns, maintain financial records, and adhere to local regulations.
What is a Public Limited Company (PLC) in Cyprus?
A Public Limited Company (PLC) in Cyprus is a type of corporate entity that allows for the issuance of shares to the public. It is ideal for businesses that seek to raise capital through public investment and are considering listing on a stock exchange. Cyprus, being a strategic business hub with a favorable tax regime and access to European markets, makes it an attractive location for establishing a PLC.
Who is it for?
A Cyprus PLC is suitable for:
- Entrepreneurs and businesses looking to raise capital through public offerings.
- Companies planning to list on the Cyprus Stock Exchange (CSE) or other international stock markets.
- Medium to large enterprises seeking growth and expansion.
- Investors looking for a corporate structure that allows easy share transfers and public investment.
Key Benefits of a Cyprus PLC
- Access to Capital Markets: The ability to raise funds from the public by issuing shares.
- Limited Liability: Shareholders’ liability is limited to their investment in shares.
- Corporate Credibility: Enhances the company’s reputation and trustworthiness in the market.
- Attractive Tax Regime: Cyprus offers one of the lowest corporate tax rates in the EU (12.5%) and benefits from an extensive network of double taxation treaties.
- EU Market Access: Being a member of the EU, a Cyprus PLC enjoys the advantages of trading and operating within the European Economic Area (EEA).
- Flexibility in Share Transfers: Publicly traded shares can be freely bought and sold.
Key Characteristics of a Cyprus PLC
- Minimum Share Capital: A minimum issued share capital of EUR 25,629 is required.
- Minimum Shareholders: At least seven shareholders are required.
- Board of Directors: A minimum of two directors is required, who can be either individuals or corporate entities.
- Company Secretary: The PLC must appoint a company secretary responsible for administrative and compliance duties.
- Regulatory Compliance: Subject to audits, regulatory filings, and corporate governance rules as per Cyprus Companies Law.
- Public Offering: The company can issue shares to the public and must comply with stock exchange regulations if listed.
What is a Company Limited by Guarantee?
A Company Limited by Guarantee (CLG) in Cyprus is a unique corporate structure commonly used by non-profit organizations, charities, associations, and professional bodies. Unlike traditional companies, a CLG does not have shareholders; instead, it has members who act as guarantors, agreeing to contribute a nominal amount in case of insolvency. This structure is ideal for organizations that aim to reinvest profits into their activities rather than distribute them to stakeholders.
Who is it for?
A Company Limited by Guarantee is best suited for:
- Non-Profit Organizations – NGOs, charities, and foundations seeking legal status.
- Professional Associations – Trade and industry bodies that regulate and support their members.
- Clubs and Societies – Social, cultural, or sporting groups requiring legal protection and governance.
- Educational Institutions – Schools, academies, and research entities operating on a non-profit basis.
- Public Interest Organizations – Entities established for community, environmental, or social purposes.
Key Characteristics of a CLG in Cyprus
- No Share Capital – Unlike standard companies, a CLG does not issue shares, and its members are not shareholders.
- Limited Liability – Members’ liability is restricted to the amount they guarantee, usually a nominal sum.
- Governed by a Constitution – The company’s Articles of Association outline its purpose, governance, and operational rules.
- Non-Profit Nature – Profits are reinvested in the organization rather than distributed.
- Legal Personality – The company has a distinct legal identity, meaning it can enter contracts, own property, and sue or be sued.
- Regulatory Compliance – Subject to Cyprus Companies Law, a CLG must comply with reporting and governance requirements.
Benefits of a Company Limited by Guarantee
- Enhanced Credibility – Being a legally registered entity increases trust among donors, members, and regulatory authorities.
- Limited Liability Protection – Members’ financial risk is minimal.
- Perpetual Succession – The company continues to exist even if members change.
- Tax Advantages – Eligible for tax exemptions and benefits if recognized as a charity.
- Legal Protection – Provides a formal structure that safeguards the organization’s assets and mission.
A Company Limited by Guarantee in Cyprus is a powerful vehicle for organizations seeking legal recognition, governance, and financial protection while maintaining a non-profit nature. Whether you are setting up a charity, professional body, or community initiative, a CLG ensures long-term stability and credibility for your mission.
A Branch of a Foreign Company in Cyprus is ideal for international businesses looking to expand their operations in the EU while benefiting from Cyprus’s attractive tax regime and strategic location.
Who Is It For?
- Foreign companies seeking an EU presence without full incorporation
- Businesses looking for tax efficiency and regulatory advantages
- Companies wanting a cost-effective setup with operational flexibility
Key Benefits:
- Low Corporate Tax – Benefit from Cyprus’s 12.5% corporate tax rate
- EU Market Access – Operate within the European Union framework
- No Share Capital Requirement – Easier and cheaper to establish
- Reputable Legal Framework – Based on English Common Law
- Double Tax Treaties – Minimize tax liabilities internationally
Key Characteristics:
- The branch is legally dependent on its parent company
- Must register with the Cyprus Registrar of Companies
- Financial statements must be filed annually
- Management decisions remain under the foreign company’s control
Expand your business seamlessly with a Cyprus branch efficient, compliant, and globally connected.
Partnerships in Cyprus: General & Limited
Cyprus offers a flexible and business-friendly environment for General and Limited Partnerships, ideal for entrepreneurs, professionals, and investors looking for a collaborative business structure.
Who Is It For?
- Small business owners & startups
- Professionals (lawyers, consultants, accountants)
- Investors seeking joint ventures
- International businesses expanding to Cyprus
Key Benefits
- Simple Formation & Low Costs
- Tax Efficiency (especially for Limited Partnerships)
- Flexible Profit-Sharing & Management
- No Minimum Capital Requirement
Key Characteristics
🔹 General Partnership – All partners share management & liability
🔹 Limited Partnership – At least one general partner (with unlimited liability) & one limited partner (liable only up to their contribution)
🔹 Registered with the Cyprus Registrar of Companies
A Cyprus partnership is a strategic way to collaborate while optimizing financial and legal flexibility.
Sole Proprietorship in Cyprus
A Sole Proprietorship in Cyprus is the simplest business structure, ideal for freelancers, small business owners, and independent professionals looking to operate with minimal setup and costs.
Who Is It For?
- Entrepreneurs starting a small business
- Freelancers and consultants
- Self-employed individuals
Key Benefits
- Easy Registration – Quick and straightforward setup
- Low Costs – Minimal administrative and tax burdens
- Full Control – Sole decision-making authority
- Simplified Taxation – No corporate tax, only personal income tax
- Flexibility – Easy to adapt and scale
Key Characteristics
- Owned and managed by one person
- No legal distinction between the owner and business
- Owner is personally liable for debts and obligations
- Must register with the Cyprus Tax Department for VAT (if applicable)
A sole proprietorship is a great choice for those who want independence in running their business with fewer regulatory requirements.
Cyprus Investment Firm (CIF) – Your Gateway to EU Financial Markets
A Cyprus Investment Firm (CIF) is a licensed financial entity regulated by the Cyprus Securities and Exchange Commission (CySEC). It offers investment services such as brokerage, portfolio management, and financial advisory within Cyprus and across the European Union under MiFID II.
Who is it for?
CIFs are ideal for entrepreneurs, financial service providers, and investment professionals looking to operate in a well-regulated, tax-efficient environment with access to European and international markets.
Key Benefits:
- EU Passporting – Operate across the EU without additional licenses.
- Favorable Tax Regime – Corporate tax rate of 12.5% with no withholding tax on dividends.
- Strong Regulatory Framework – Compliance with EU financial laws ensures credibility and investor protection.
- Cost-Effective Setup – Competitive licensing fees and operational costs compared to other EU jurisdictions.
Key Characteristics:
- Regulated by CySEC – Ensuring transparency and investor trust.
- Minimum Capital Requirements – Vary depending on the type of investment services offered.
- Flexible Service Offerings – Ranging from market-making and portfolio management to investment advice.
- Global Banking & Compliance Support – Access to international banking and financial networks.
A Cyprus Investment Firm provides a strategic advantage for businesses aiming to establish a reputable and scalable investment firm in the EU.
Tax Advantages Cyprus
Tax Advantages of a Company in Cyprus
Cyprus is a prime destination for businesses looking to benefit from an attractive tax framework, strategic location, and business-friendly environment. With one of the lowest corporate tax rates in the European Union, extensive tax treaties, and a straightforward company incorporation process, Cyprus has become a preferred jurisdiction for entrepreneurs, investors, and multinational corporations.
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Low Corporate Tax Rate
Cyprus offers a competitive corporate tax rate of 12.5%, making it one of the lowest in the EU.
Tax Exemptions on Dividends
Dividends received by a Cyprus holding company are generally exempt from corporate tax.
No Withholding Taxes
There are no withholding taxes on dividends, interest, and royalties paid to non-residents.
Extensive Double Tax Treaties
Cyprus has agreements with over 65 countries to prevent double taxation, ensuring tax efficiency for international businesses.
No Capital Gains Tax on Certain Transactions
Capital gains tax does not apply to the sale of shares in companies, except for those holding real estate in Cyprus.
EU Membership and Compliance
Being an EU member, Cyprus adheres to international tax regulations, offering businesses legitimacy and access to European markets.
Favorable VAT System
With a standard VAT rate of 19% and lower rates for specific industries, businesses can benefit from VAT efficiencies.
Easy Incorporation and Operation
Setting up a company in Cyprus is straightforward, with minimal bureaucracy and a well-developed financial and legal infrastructure
Tax Benefits for Foreign Employees
Special tax incentives are available for expatriates and high-income earners relocating to Cyprus.
Flexible Intellectual Property (IP) Tax Regime
The Cyprus IP Box Regime provides an effective tax rate as low as 2.5% on qualifying intellectual property income.
How can we assist you?
How We Can Help with Cyprus Company Registration
Setting up a company in Cyprus offers numerous benefits, from favorable tax policies to a strategic European location. Our expert team provides comprehensive support to streamline the entire process, ensuring a hassle-free experience.
We can help with:
- Expert Guidance – We assess your business goals and recommend the best company structure for your needs.
- Company Name Approval – Assistance in selecting and securing a unique company name with the Cyprus Registrar.
- Legal Documentation & Compliance – Preparation and submission of necessary incorporation documents in line with Cyprus regulations.
- Registered Office & Address Services – Provision of a registered business address required for company formation.
- Bank Account Assistance – Guidance on opening a corporate bank account in Cyprus.
- Tax & VAT Registration – Support with obtaining a Tax Identification Number (TIN) and VAT registration.
- Ongoing Corporate Support – Assistance with annual filings, bookkeeping, and regulatory compliance to keep your company in good standing.
Our end-to-end services simplify the process, allowing you to focus on growing your business while we handle the complexities of company formation in Cyprus.
Speak to our experts today! Call us at +357 22764040 or fill out the form to get started.
