Company registration in Cyprus

The flexible tax-regime and attractive tax incentives make Cyprus a highly favorable jurisdiction for the right type of investor. In particular Cyprus stands out for the tax benefits it offers to individuals who wish to move their personal tax-residency to Cyprus. In brief, any foreign individual who spends more than 60 days a year in Cyprus and no longer than 183 days in another country may obtain Cyprus tax residency with a non-domicile status. As a non-domiciled tax resident of Cyprus one can benefit from a number of tax advantages including the exemption from income tax and Special Defense Contribution tax (SDC) on interest and dividends for a period of 17 years. Combined with a United Arab Emirates corporate structure, the Cyprus non-domicile concept can be an ultimate solution for many business models.

As a full member of the European union and part of the Eurozone, Cyprus does not only benefit from ease of business within the EU but also prides itself in applying the highest standards of compliance and transparency to its business ethics. It is fully compliant with all EU, FATD, FSF directives and is included in the Organization for Economic Cooperation and Development (OECD) White List.

WHY CYPRUS?

WHY NOT?

Corporate tax of 12.5% on net profits
No withholding tax on dividends, royalties and interest paid to non-resident shareholders
No capital gains tax from the disposal of shares and other securities (unless the Company holds immovable property in Cyprus which is subject to a flat rate of 20% after allowing for indexation)
No capital gains (goodwill) or income tax after the liquidation of the company
No wealth or inheritance tax
No foreign exchange (FX) gains, with the exception of FX gains arising from trading in foreign currencies
Notional interest deduction (NID) of up to 80% of the taxable profit from new equity
Double tax treaties with over 60 countries worldwide
Cyprus companies may carry forward losses
80% exemption on profits from the exploitation or licensing and gains on disposal of Intellectual property
Foreign tax paid subject to income tax in Cyprus may be credited against income tax payable, irrespective of the existence of a tax treaty
EU VAT registration simplifies EU trading (triangular trade)
Cyprus companies are permitted to have bank accounts outside the EU
Nominee shareholders are allowed which provides anonymity and security for the beneficial owners
A Cyprus company can be incorporated with 100% foreign ownership
The share capital of the company does not have to be fully paid up at the time of incorporation
A Common Law basis of the legal system makes a Cyprus company an excellent solution for holding and investment purposes

Relatively long incorporation time compared to other jurisdictions
Very inefficient and practically absent legal system. Legal procedures can be dragged on for up to ten years and can become very expensive in legal fees without satisfactory end results
Strict substance requirements can significantly elevate company maintenance costs due to very high prices on property, utilities and social contributions. To read more on the significance of properly structured substance in Cyprus or any other jurisdiction worldwide and what our firm can offer you to achieve this, please visit our Physical Presence section.
Unhealthy and unstable banking sector, local financial institutions suffer losses yearly
Public register of company officials
Government services have a very low level of digitalization
Relatively high import costs and limited local market
Difficult and lengthy immigration procedures for obtaining employment permits for third country nationals. Only specific employees are granted employment visas working in a dedicated company
Governmental permissions such as licensing, building permits, special permissions etc. are less transparent, complicated and can take a very long time to be issued compared to other European countries

Cyprus offers one of the lowest corporate income tax rates in Europe and if structured and managed correctly a Cyprus company can be a powerful financial instrument for any successful international business. Though there are no restrictions on the legal form of a Cyprus company, the most popular type of company an investor opts for is the limited liability company, whether it is private or public due to its flexibility to be adapted into any business sector. Our highly trained professional team will gladly guide you through the entire incorporation process and can provide you with a fully operational company without your having to visit Cyprus, even if you are going to be a director or shareholder yourself

We would like to highlight, that our firm specializes in the formation and management of public companies and our knowledgeable experts can assist you with the listing of your company on the stock exchange. It is worth noting, however, that a Cyprus public company can be a very interesting financial instrument even without listing on the stock exchange.

Corporate Features of a Cyprus Private and Public Limited Liability Company

GENERAL	Private LTD	Public LTD
Incorporation Time	10 Business Days	10 Business Days
Local Registered Agent Required	No	No
Local Registered Address Required	Yes	Yes
Migration of Domicile Permitted	Yes	Yes
SHARE CAPITAL
Minimum Share Capital	No Minimum	EUR 25,629
Minimum Paid Up	No Minimum	100%
Maximum Share Capital	No Maximum	No Maximum
Bearer Shares Allowed	No	No
SHAREHOLDERS
Minimum number	One	Seven
Maximum number	Fifty	No Maximum
Publicly accessible records	Yes	Yes
Corporate shareholder allowed	Yes	Yes
Annual General Meeting Required	Yes	Yes
DIRECTORS
Minimum Number	One	Two
Maximum Number	No Maximum	No Maximum
Local required	No but strongly recommended	No but strongly recommended
Publicly accessible records	Yes	Yes
Corporate directorship allowed	Yes	Yes
COMPANY OFFICIALS
Secretary Required	Yes	Yes
Local Secretary Required	No but strongly recommended	No but strongly recommended
Other Officials Required	No	No
COMPANY ACCOUNTS
Requirement to Prepare	Yes	Yes
Requirements to File Accounts	Yes	Yes
Audit Required	Yes	Yes
OTHER ANNUAL REQUIREMENTS
Government Renewal Fee	EUR 350	EUR 350
Annual Return	Yes	Yes
Tax Return	Yes	Yes
Submission of Economic Substance Report	No	No

For any enquires or more information, please feel free to Contact us at any time and our corporate team will promptly address your request. Our firm can provide you with all the necessary services for the smooth and precise administration of your company, including director and management services as well as accounting, bank account opening and compliance. By entrusting your company management to us, you are guaranteed the highest level of professionalism and a unique approach to your specific business structure. Our firm will advise and assist you to establish a solid and reliable substance that will be the most cost-effective and relevant for your specific business.

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2Submit documents
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