How to Set Up a Company in Cyprus

Cyprus is a popular jurisdiction for business formation due to its EU membership, favorable tax regime, and strong legal framework. The process of setting up a company is straightforward when handled with professional support.

1. Choose the Company Type

The most common structure is a Private Limited Liability Company (Ltd), suitable for small, medium, and international businesses. Other structures (partnerships, branches, sole traders) are also available, depending on your needs.

2. Approve the Company Name

A proposed company name must be submitted to the Cyprus Registrar of Companies for approval. This usually takes a few working days.

3. Prepare Legal Documents

Once the name is approved, the following documents are prepared:

• Memorandum & Articles of Association

• Shareholder and director details

• Registered office address in Cyprus

These documents define how the company operates and is legally required for incorporation.

4. Appoint Directors, Shareholders & Secretary

A Cyprus company must have:

• At least one shareholder

• At least one director

• A company secretary

These can be individuals or legal entities, and non-residents are allowed.

5. Register the Company

The incorporation documents are filed with the Registrar of Companies. Once approved, the company receives:

• Certificate of Incorporation

• Certificate of Directors & Secretary

• Certificate of Shareholders

• Registered Office Certificate

6. Tax Registration

After incorporation, the company must:

• Register with the Cyprus Tax Department

• Obtain a Tax Identification Code (TIC)

• Register for VAT (if applicable)

7. Open a Corporate Bank Account

A corporate bank account is required for business operations. Banks will conduct due diligence, including source-of-funds checks and business activity review.

8. Ongoing Compliance

Companies in Cyprus must meet ongoing obligations, including:

• Annual financial statements and audits

• Annual return submission

• Tax filings

• Maintenance of statutory records

Why Choose Cyprus?

• EU member state with access to EU markets

• Corporate tax rate of 12.5%

• Extensive double tax treaty network

• Strong legal and regulatory framework

• Business-friendly environment