Cyprus
Company Formation
Cyprus is a well-known jurisdiction for international business due to its favourable tax regime, strategic location and membership in the European Union.
While it is not an iGaming jurisdiction, Cyprus attracts businesses in the fields of financial services, shipping, technology and other sectors seeking tax-efficient solutions and access to EU markets.
Its legal system, based on English common law, provides strong protections for investors and businesses, making Cyprus a highly attractive destination for company formation.
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Why Cyprus
- Cyprus is an attractive jurisdiction for businesses due to its low corporate tax rate of 12.5% and access to the EU single market and strategic location.
- The country offers a tax-efficient structure, extensive double taxation treaties and strong investor protections through its English common law-based legal system.
- With government support for innovation and business growth, Cyprus is ideal for start-ups seeking a low-tax environment and international reach.
Key Contacts
Alexia Panzavecchia
Claire Marie Calleja Zammit
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Key Information Overview
 | Types of Companies | Private Limited Company (Ltd), Public Limited Company (PLC), Branch |
 | Minimum Share Capital | Ltd: €1,000, PLC: €25,629 |
 | Registered Office | Must have a registered office in Cyprus |
 | Shareholders & Directors | At least 1 shareholder and 1 director (EEA director recommended) |
 | Bank Account | Must open a local bank account and deposit share capital |
 | Tax Regime | 12.5% corporate tax, no withholding tax on dividends for non-residents |
 | Time to Complete Incorporation | 1-2 weeks |
 | Annual Maintenance Costs | Varies based on company size, registration fees, compliance, accounting |
 | Audit Requirements | Mandatory for all companies |
 | Market Access | Access to EU markets, double tax treaties with over 60 countries |
 | Key Benefits | Competitive tax regime, EU member, strong financial services sector |
 | Legal Framework | Based on English common law |
 | Physical Presence Requirements | Registered office required; physical presence not mandatory |
 | Corporate Governance Requirements | At least 1 director and company secretary (local representative encouraged) |
 | Language Requirements | Greek and English (all legal documentation can be in English) |
 | Tax Residency Rules | Managed and controlled from Cyprus |
 | Required Documents | Memorandum of Association, ID proof, registered office address, share capital deposit |
 | Compliance & Reporting | Annual returns, audited financial statements, VAT filings |
 | Employee and Payroll Requirements | Comply with Cyprus employment laws, including social security contributions |
Types of Companies
01
Private Limited Company (Ltd)
- The most common form of company, suitable for small to medium-sized businesses. Limited liability protection for shareholders.
- Low minimum share capital requirement and relatively simple incorporation process.
02
Public Limited Company (PLC)
- Suitable for larger businesses looking to raise capital or list on a stock exchange.
- Minimum share capital requirement: €25,629.
03
Branch of a Foreign Company
Allows foreign companies to establish a branch in Cyprus, which is not a separate legal entity but operates as an extension of the parent company.
04
Partnership
- Suitable for professional firms and other types of businesses involving multiple owners.
- No minimum share capital, but liability varies depending on the type of partnership.
05
Special Purpose Vehicles (SPVs)
Cyprus Holding Company
Investment Fund (AIF or RAIF)
Cyprus is becoming a growing hub for Alternative Investment Funds (AIFs) and Registered Alternative Investment Funds (RAIFs). These are ideal for investors looking to pool funds in real estate, private equity or other high-return assets, benefiting from Cyprus’ strong regulatory framework and low tax rates.
Shipping Company
Cyprus is a global leader in shipping, with favourable tax regimes and tonnage tax systems that make it attractive for investors in the maritime industry.
Trusts and Foundations
Cyprus International Trusts are popular vehicles for asset protection, estate planning and wealth management, offering robust confidentiality and flexible management structures.
Start-Ups
Cyprus provides several incentives and favourable conditions for start-up companies, particularly
in sectors like technology, financial services and shipping. The combination of a low corporate tax rate and government support makes it an attractive destination for new ventures.
Tax Incentives:
- Corporate Tax Rate: Cyprus has one of the lowest corporate tax rates in the European Union, at 12.5%.
- R&D Tax Incentives: Start-ups engaged in research and development can benefit from tax credits and deductions.
Government Grants and Support:
Seed and Start-Up Capital Programmes: Various schemes provide financial support for innovative businesses in their early stages, with grants and low-interest loans.
Business Support:
Incubators and Accelerators: A number of incubators and accelerators in Cyprus provide mentorship, funding and networking opportunities for start-ups.
Strategic Access to Markets:
EU Single Market: Cyprus’ membership in the EU gives businesses access to the single market, offering opportunities for cross-border trade and expansion.
Digital Infrastructure:
Technology Hub: Cyprus is actively building its reputation as a tech hub, making it attractive for tech-driven start-ups.
B+
Grade B+: Start-Up Friendly
Cyprus offers a business-friendly environment for start-ups, particularly in technology, shipping and financial services. With government support, favourable tax conditions and access to EU markets, it is an appealing destination for entrepreneurs.
Benefits
Low Corporate Tax Rate
Cyprus offers one of the lowest corporate tax rates in the EU, at 12.5%, making it attractive for businesses looking for tax efficiency.
Double Taxation Treaties
With over 60 double taxation treaties in place, Cyprus helps businesses avoid paying tax twice on the same income in different jurisdictions.
EU Membership
As a member of the European Union, companies in Cyprus benefit from access to the EU single market, free trade and the movement of goods and services.
Strategic Location
Located at the crossroads of Europe, Asia and Africa, Cyprus offers excellent connectivity and access to key international markets.
English Common Law System
Cyprus follows a legal system based on English common law, providing strong investor protections and a transparent business environment.
Requirements
To establish a company in Cyprus, the following legal and administrative requirements must be met.
01
Shareholders
A minimum of one shareholder is required for a private limited company (Ltd), while a public limited company (PLC) must have at least seven shareholders. Shareholders can be individuals or corporate entities, with no nationality restrictions.
02
Directors
A minimum of one director is required. There are no residency requirements for directors, but local directors are recommended for tax residency purposes.
03
Company Secretary
Every company in Cyprus must appoint a company secretary. The secretary can be an individual or a corporate entity.
04
Registered Office
A Cyprus company must have a registered office in Cyprus, which will serve as its official address for legal correspondence.
05
Memorandum and Articles of Association
These documents must be drafted and submitted to the Department of Registrar of Companies, outlining the company’s structure, objectives and governance.
06
Minimum Share Capital
There is no minimum share capital for private limited companies, but public limited companies (PLCs) must have a minimum share capital of €25,629.
07
Bank Account
A local or international bank account must be opened in the company’s name, where the initial share capital must be deposited.
Mergers & Acquisitions
TAILORED SUPPORT to fast-track your market entry
Our Mergers & Acquisitions services are designed to assist clients in acquiring existing companies with pre-established licenses, streamlining the process of entering or expanding in key markets. These services are particularly relevant for investors seeking to fast-track their market entry while ensuring efficient and compliant solutions.
Identifying Suitable Businesses
We help clients locate companies that meet their specific goals, focusing on entities with strong operational histories and the required licenses.
Legal and Regulatory Assistance
Our experts guide clients through the unique legal and compliance frameworks of each market, ensuring a smooth acquisition process with minimal risk.
Valuation & Due Diligence
We conduct in-depth assessments of the target company’s financial and operational status, providing transparency and confidence in the acquisition.
Post-Acquisition Support
For clients who decide to divest, we offer comprehensive services to facilitate the sale of the company and transfer of licenses.
Frequently Asked Questions
What is the corporate tax rate in Cyprus?
Cyprus has a corporate tax rate of 12.5%, one of the lowest in the EU, making it attractive for businesses.
Are there withholding taxes on dividends in Cyprus?
No, Cyprus does not impose withholding taxes on dividends paid to non-residents.
What legal structures are common in Cyprus?
The most common structures are the Private Limited Company (Ltd) and Public Limited Company (PLC).
Does Cyprus have any residency requirements for directors?
Cyprus requires at least one director to be a resident for tax purposes, although this is not a mandatory legal requirement.
Is VAT applicable in Cyprus?
Yes, the standard VAT rate in Cyprus is 19%, though certain services may qualify for reduced rates or exemptions.
Are audited financial statements required in Cyprus?
Yes, all companies in Cyprus must file audited financial statements annually with the Registrar of Companies.
Does Cyprus offer tax incentives for businesses?
Yes, Cyprus offers incentives such as the Intellectual Property (IP) box regime and extensive double taxation treaties to support international businesses.
What is the process for setting up a company in Cyprus?
Incorporation includes submitting the company’s articles of association, appointing directors and opening a bank account.
Are there any specific incentives for holding companies in Cyprus?
Yes, Cyprus is known for its favourable tax regime for holding companies, offering benefits such as no withholding taxes on dividends and capital gains.
How does Cyprus handle double taxation?
Cyprus has an extensive network of double taxation treaties with over 60 countries, helping to avoid double taxation on income.
Need assistance?
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