Сompany registration in Cyprus

Cyprus is a small island in the south of the Mediterranean Sea. But this country is known not only as a tourist location but as a global business center. Cyprus is a member of the European Union. The country has effective legal system and one of the most favorable tax rates in Europe. For example, the corporate tax is only 12.5%.

In addition, the country is not having offshore status; The country has signed numeral treaties to avoid double taxation. Local firms can easily open a corporate account with any European bank. You can fly to Nicosia and Limassol (major cities) from anywhere in Europe, Africa, the CIS, or the UAE. Convenient geographical location and loyal tax regime make the country attractive for investors and businessmen worldwide.
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Сompany registration in Cyprus

Company registration in Cyprus provides a business owner with many benefits. The country has a developed economic and banking sector and many services are available online. One can manage an enterprise without a personal visit to the island; many issues can be resolved remotely. In addition to registering a new enterprise, an existing business can be redomiciled to the Republic of Cyprus from another jurisdiction.
The country is not contained in the OECD blacklist, so your business will operate in a respected jurisdiction absolutely legally. The tax policy in this jurisdiction is one of the most loyal in Europe. Local authorities create a comfortable environment for entrepreneurs. For example, 0% taxation on the financial gain from securities transactions, re-registration of real estate, receipts from subsidiaries and foreign branches.
Having an account in a local bank will allow you to use your funds anywhere in the world, and the Internet banking service will make it possible to conduct almost any operation remotely. You can start your own business on the island even as a foreign citizen.
In addition, it is convenient not only to work in Cyprus but also to live as an expatriate. The English spoken language is used in all spheres, there is a large international diaspora, foreign schools for children, and modern real estate of a wide variety of classes for any budget.

Process of company formation in Cyprus

Establishments in the state are often used to optimize taxation, however, they are not having a status of offshore institutions. Despite the fact that the country has the lowest level of taxation in the European Union, there are still some taxes. Let’s have a look at the key fact to consider before opening a company:
Personal presence is not required to incorporate a firm. One can register a company in Cyprus online.
All resident businesses are obliged to pay income tax (12.5%). And also VAT if the Cypriot enterprise makes a profit from the residents of the European Union. If services or goods are sold outside the EU, then the establishment is exempt from VAT.
All enterprises must maintain accounting records and submit annual reports and income tax returns to the tax authorities.
Local legislation allows the beneficial owners to maintain a high level of confidentiality by the participation of nominee directors and shareowners. They can be either individuals or legal entities.
Cyprus enterprise title must end in Limited or Ltd and essential to be unique. Using of some words (i.e., bank, government is prohibited).
Any legal type of business is permitted. For some activities, it is necessary to obtain an appropriate license (For example, banks, trusts, insurance firms).
The conditions of substance require to have a physical office and a corporate secretary in the country. The secretary can be a legal entity or an individual.
The authorized capital is demanded, the minimum amount is 1,000 euros. This capital can be divided into shares with a par value of 1 euro (1,000 shares at 1 euro). No par shares and bearer shares are prohibited.
Meetings of shareholders and directors can be held anywhere in the world. Keeping documents of a Cypriot enterprise is also allowed anywhere in the world.
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Why should you choose fintecharbor.com for company registration in Cyprus?

Although the Cypriot legislation is quite loyal and the procedure of Cyprus company formation is simple, it still requires knowledge of certain nuances. Fintecharbor lawyers have registered hundreds of firms and have opened corporate accounts in Cypriot banks for many entrepreneurs. We know the procedures from A to Z and will help you go through the entire registration process as soon as possible.
We will select the name of the firm, collect a full package of documents, including all information about directors and the origin of funds, go through all KYC procedures and due diligence for the bank, help open an account for your enterprise and obtain the necessary licenses. By contacting us, you will receive a package of documents to get started in less than two weeks. We will also gladly advise you on all the taxation aspects of doing business with a Cyprus firm.

Process of company formation in Cyprus

The first step in the process of registering a business in Cyprus is choosing a title. An appropriate business firm title must be reserved and authorized by the Registrar of Companies. This usually takes no more than 2 days.
The next step is the preparation of the Memorandum and Articles of Association. On the island, there is a general template for these papers, suitable for absolutely all firms, regardless of the type of activity. At this stage, you need to select the main characters – stockholder, managing director, and corporate secretary.
After that, you need to register in the Registration Department by submitting a package of documents through the department’s website or in person. All documents are essential to be translated into English and certified by an apostille. The verification of papers, as a rule, takes place within two business days.
The final stage is registration with the taxation authorities and obtaining a VAT number. This can also be done online. The whole process takes no more than 2 weeks, provided that all documents are submitted correctly and in full and completed without errors.
To start a local business in Cyprus, you need to obtain a permit. For example, a license for the opening of a café is issued by the local government, for a hotel – by the Cyprus Tourism Organization, for the provision of educational services – by the Ministry of Education. Obtaining a license will take 5-7 days.
The situation is more complicated in the financial sector. If a firm is planning to provide banking, insurance, and reinsurance services, the procedure is not simple and will take several months. The licensing of financial activities is carried out by the CYSEC (Cyprus Securities and Exchange Commission).


Our task was to register a firm in Cyprus and open an account with a European bank. Fintecharbor lawyers helped to obtain all the documents in term and after 2 weeks we were ready to conclude the first contracts. Highly recommend.
We have registered an international holding in Cyprus for the restructuring of our IT business. Despite the complex corporate structure, lawyers were able to understand all the nuances, prepare a package of documents, fill out applications and quickly submit them to the competent authorities. Everything went very quickly and clearly.
Fintecharbor helped us to register a Cypriot enterprise and obtain a specific insurance license. The entire process took place remotely. The founders of the group did not have to travel anywhere, and the package of documents was delivered to our office by DHL already a few weeks after the initial inquiry. The lawyers were always in touch and answered all questions.
We contacted Fintecharbor when we already had an acting Cypriot firm. We were looking for competent lawyers in structuring taxes, auditing, and filing yearly reports. Competent consultants were competent to advise us on complex taxation issues of cross-jurisdictional investment and successfully accompanied the necessary transactions.


Every natural or legal person, regardless of nationality and residency, can open a business in Cyprus. The law provides for the possibility of the subsequent types of enterprises as Partnerships (including Limited Partnerships), Public Limited Companies, Trust Companies, Clubs, or Non-profit organizations. Usually, Limited Liability Companies are opened, where each of the investors is liable only within the real value of the owned shares.
As mentioned earlier, Cyprus enjoys one of the mildest tax rules in Europe. Resident companies pay 12.5% ​​corporate tax. The profit is taxed regardless of the source and origins of its formation. Non-residents pay corporate tax only on income earned within the country. Income from the sale of securities, dividends, interest income that does not arise from the ordinary (activities of the business, income from a permanent representative office abroad (subject to certain conditions), income in the form of exchange differences (forex), except exchange differences related to foreign exchange trading or foreign exchange derivatives subject to corporate tax. 19% VAT must be paid on income received from the trade of goods and services on the territory of the European Union.
Registration of an enterprise that includes collecting documents, filing applications with the competent authorities, registration with the tax authorities, obtaining the essential certificates is a major line of costs. Translation of documents into English and apostilled, DHL forwarding of documents, and government fees are paid separately. Opening a bank account and obtaining the basic licenses are also different services and are provided for an additional fee.
In most circumstances, it takes about 3 weeks to incorporate a Cypriot LLC with a client’s name. The title must be reconciled with the Registrar of companies. The standard term for approving a new business name is 5 business days. The certificates are issued within two or three weeks. Registration with tax authorities and obtaining VAT certificates takes another 2-3 days. It should be noted that there is no fixed time frame for the provision of public services in Cyprus. It all depends on the workload of the clerk. Also, before registering, you should collect a package of papers about the founders and translate these documents into English. This also requires time. A firm’s bank account is opened only after the firm enrollment process is finalized. Depending on the bank, an account can be opened from several days to several weeks. Each bank has its personal KYC and due diligence procedures and terms for registering a business account.

For limited liability corporations, a certified attorney prepares a Memorandum and Articles of Association. These documents include information about shareowners, supervisors, secretaries, authorized finances, and distribution of stakes.

The next documents are prepared in Greek or English and certified by a notary:

  • original or authenticated copy of the Memorandum and Articles of Association;
  • a statement by a lawyer that the Articles of Association of the organization are drawn up under applicable law;
  • the document for appointing the director and secretary (including a copy of the director’s passport, confirmation of his actual residence, sample signature);
  • documents confirming the right or the fact of renting an office;
  • the paper of registration of shareholders (for individuals – passport copies and confirmation of actual place of residence, for legal entities – a certificate of registration and a copy of a certificate indicating the head office of the firm).

To open a corporate account, the beneficiaries (owners) of the firm supply the subsequent documents in English:

  • a notarized copy of passport or ID;
  • proof of residence, such as current utility invoices;
  • documents proving the legality of income, such as income tax return;
  • a letter of recommendation from a bank where an account has already been opened, or a recommendation from a business in the EU.

Some banks may also request additional documents. The list needs to be clarified with a financial institution.