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Company formation in Cyprus
Comprehensive assistance in company formation, including banking services
How to form a company in Cyprus
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Cyprus
and opening a bank account in Cyprus
and opening a bank account in Cyprus
2
Payment of services
Payment of our services for company formation in Cyprus
and/or bank account assistance in Cyprus
and/or bank account assistance in Cyprus
3
Company formation
We register a new company in Cyprus for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to forming a company in Cyprus
Minimum share capital that is required to register a company in Cyprus as a Ltd. (a limited liability company) is just EUR 1.
1. Founders of a company in Cyprus can either be resident or non-resident in Cyprus. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a director in Cyprus. However it is recommended to set up a company in Cyprus with a resident individual as one of its directors.
3. One individual can be simultaneously a shareholder and a director in a company in Cyprus if such company is registered as a Ltd. (a limited liability company).
4. It is highly recommended to create substance in Cyprus - to rent an office and to have at least 1 resident secretary in order to conduct business in Cyprus.
5. Minimum share capital that is required to register a company in Cyprus as a Ltd. (a limited liability company) is just EUR 1.
6. Information about company founders, shareholders and directors after a company registration in Cyprus is complete is not publicly available in the state corporate register.
7. A company in Cyprus can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Nicosia or Limassol for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a director in Cyprus. However it is recommended to set up a company in Cyprus with a resident individual as one of its directors.
3. One individual can be simultaneously a shareholder and a director in a company in Cyprus if such company is registered as a Ltd. (a limited liability company).
4. It is highly recommended to create substance in Cyprus - to rent an office and to have at least 1 resident secretary in order to conduct business in Cyprus.
5. Minimum share capital that is required to register a company in Cyprus as a Ltd. (a limited liability company) is just EUR 1.
6. Information about company founders, shareholders and directors after a company registration in Cyprus is complete is not publicly available in the state corporate register.
7. A company in Cyprus can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Nicosia or Limassol for 1 day in order to open a corporate bank account.
Cost of services
Formation of a Ltd.
Timeframe - 10 business days
Timeframe - 10 business days
Send a request
for company formation
Advantages of forming a company in Cyprus
Attractive business-environment
- Access to EU markets
- Access to the Mediterranean Sea allows to establish maritime trade
- Corporate register is not public
- Open economy
- Stable economic growth
- Highly-qualified workforce
- Low inflation
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Low corporate income tax rate of 12%
- No dividend withholding tax if payments are made to tax cooperative jurisdictions
- No interest withholding tax if payments are made to tax cooperative jurisdictions
- Notional interest deduction
- Multiple double tax treaties
No foreign exchange controls
- Cyprus joined the Euro area, which allows it to secure free capital transfer in any currency. Individuals and business-entities, either resident or non-resident in Cyprus may open bank accounts in local banks in any currency
Ease of establishing and doing business
- Minimum share capital that is required to register a company in Cyprus as a Ltd. (a limited liability company) is just EUR 1
- Remote company formation in Cyprus is available
More about Cyprus
The Republic of Cyprus is an island country located in the eastern Mediterranean Sea. Cyprus has a territory of 9,251 square kilometers. Cyprus has access to the Mediterranean Sea. The nearest neighbors of Cyprus are Egypt, Greece, Syria and Turkey. The capital city of Cyprus is Nicosia, the largest city and the location of key government institutions.
Cyprus has a population of 1,25 million people.
Cyprus has a population of 1,25 million people.
Official currency of Cyprus is euro (EUR).
Cyprus has an open high-income free market and service based economy with dynamic services, industrial and agricultural sectors, as well as light manufacturing and an advanced physical and social infrastructure. Cyprus promotes its geographical location as a bridge between East and West, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications.
The services sector, including tourism, contributes almost 74% to GDP and employs more than 70% of the labor force. The business services sector remains the fastest growing sector of the economy, and had overtaken all other sectors in importance. Tourism is an important factor of the island state's economy, culture, and overall brand development.
Industry and construction account for approximately 12.8% of GDP and labor, while agriculture is responsible for 1.78% of GDP and 8.5% of the labor force. Trade is crucial to the economy of Cyprus, because the country is not self-sufficient in food and until the recent offshore gas discoveries had few known natural resources. Cyprus must import fuels, most raw materials, heavy machinery, and transportation equipment. It is suggested that more than 2.831 trillion cubic metres of reserves lie untapped in the eastern Mediterranean basin between Cyprus and Israel.
Cyprus constitutes one of the largest ship management centers in the world; around 50 ship management companies and marine-related foreign enterprises are conducting their international activities in the country while the majority of the largest ship management companies in the world have established fully fledged offices on the island.[51] Its geographical position at the crossroads of three continents and its proximity to the Suez Canal has promoted merchant shipping as an important industry for the island nation.
The GDP of Cyprus grew by 6.6% in 2021 and amounted to USD 27.7 billion.
In terms of foreign trade the largest exports of the country are ships, yachts, petroleum oils and oils from bituminous materals, cement medicaments, cheese and curd, odoriferous substances, electrical resistors, potatoes, dairy products, organic chemicals.
Imports of Cyprus consist of oil, petroleum products, plastics, iron and steel, machinery and equipment, cars and vehicles, electrical equipment, consumer goods, furniture, food products, textiles.
Primary trading partners of Cyprus are Greece, Lebanon, Marshall Islands, British Virgin Islands, Lybia, Liberia, Spain, Norway, Germany, United Kingdom, Netherlands, Belgium and South Korea.
Cyprus has an open high-income free market and service based economy with dynamic services, industrial and agricultural sectors, as well as light manufacturing and an advanced physical and social infrastructure. Cyprus promotes its geographical location as a bridge between East and West, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications.
The services sector, including tourism, contributes almost 74% to GDP and employs more than 70% of the labor force. The business services sector remains the fastest growing sector of the economy, and had overtaken all other sectors in importance. Tourism is an important factor of the island state's economy, culture, and overall brand development.
Industry and construction account for approximately 12.8% of GDP and labor, while agriculture is responsible for 1.78% of GDP and 8.5% of the labor force. Trade is crucial to the economy of Cyprus, because the country is not self-sufficient in food and until the recent offshore gas discoveries had few known natural resources. Cyprus must import fuels, most raw materials, heavy machinery, and transportation equipment. It is suggested that more than 2.831 trillion cubic metres of reserves lie untapped in the eastern Mediterranean basin between Cyprus and Israel.
Cyprus constitutes one of the largest ship management centers in the world; around 50 ship management companies and marine-related foreign enterprises are conducting their international activities in the country while the majority of the largest ship management companies in the world have established fully fledged offices on the island.[51] Its geographical position at the crossroads of three continents and its proximity to the Suez Canal has promoted merchant shipping as an important industry for the island nation.
The GDP of Cyprus grew by 6.6% in 2021 and amounted to USD 27.7 billion.
In terms of foreign trade the largest exports of the country are ships, yachts, petroleum oils and oils from bituminous materals, cement medicaments, cheese and curd, odoriferous substances, electrical resistors, potatoes, dairy products, organic chemicals.
Imports of Cyprus consist of oil, petroleum products, plastics, iron and steel, machinery and equipment, cars and vehicles, electrical equipment, consumer goods, furniture, food products, textiles.
Primary trading partners of Cyprus are Greece, Lebanon, Marshall Islands, British Virgin Islands, Lybia, Liberia, Spain, Norway, Germany, United Kingdom, Netherlands, Belgium and South Korea.
International business expands to Cyprus and incorporates a company in Cyprus primarily for:
Restricted for foreign entrepreneurs are the following sectors:
- financial services
- investment funds
- wholesale and retail trade
- energy
- R&D
- IT
- renewable energy
- tourism and hospitality
- healthcare
- shipping and maritime industry
- real estate.
Restricted for foreign entrepreneurs are the following sectors:
- defense industry
- television
- telecommunications and radio
- air transport
- postal services.
- Corporate income tax - 12.5%. Tax returns are filed on an annual basis. Advance income tax payments are made twice a year
- Dividend withholding tax - 0%
- Interest withholding tax - 0%
- Royalties withholding tax - 0/5%/10%
- Capital gains tax - 20%
- VAT - Standard tax rate 19% or reduced rates from 0% up to 9% or tax exempt. Tax returns are filed on a quarterly basis
- Personal income tax - from 0% up to 35%.
Apart from such traditional business entity types as a limited liability company (Private company limited by shares - Ltd.) and a public limited company (Public limited company), corporate law in Cyprus offers to establish a business as:
1. General partnership
2. Limited partnership
3. Partnership limited by shares
4. Exempt private company
5. Variable capital investment company
6. Trust
7. Societas Europaea
To receive a detailed description of the company formation procedure in Cyprus and information about documents necessary for company formation in Cyprus please contact our experts.
1. General partnership
2. Limited partnership
3. Partnership limited by shares
4. Exempt private company
5. Variable capital investment company
6. Trust
7. Societas Europaea
To receive a detailed description of the company formation procedure in Cyprus and information about documents necessary for company formation in Cyprus please contact our experts.
Send a request for company formation in Cyprus
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Phone: +44 20 8157 4037
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
