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How to set up a company in Cyprus – a practical guide

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How to set up a company in Cyprus step-by-step

Cyprus has for many years attracted entrepreneurs from all over the world thanks to its favourable tax regulations, stable legal system, and strategic location between Europe, Asia and Africa. Setting up a company on the island is relatively quick and simple, provided you are familiar with the local procedures.

Why is it worth setting up a company in Cyprus?

  • Low taxes – the standard rate of corporation tax is 12.51% (one of the lowest in the EU).
  • Clear law – based on the common law system.
  • No dividend tax for non-residents.
  • The possibility of conducting international business using numerous double tax treaties.

Typical forms of business

The most commonly chosen legal form is Private Limited Company (Ltd) – the equivalent of a Polish limited liability company.

Other options:

  • Sole proprietorship.
  • Partnership (spółka osobowa).
  • Public Company (for large enterprises).

Step-by-step guide to setting up a business

  1. Company name selection

    • The name must be unique and approved by Department of the Registrar of Companies.

  2. Preparation of registration documents

    • Memorandum and Articles of Association (equivalent of the company's articles of association).
    • Shareholder and director information (minimum 1 director and 1 shareholder, can be foreign nationals).

  3. Company registration

    • An application is submitted to Registrar of Companies.
    • The procedure usually lasts 7–10 working days.

  4. Opening a bank account

    • Possible in a Cypriot bank or one operating abroad on the island.

  5. Tax registration

    • Obtaining a TIN (Tax Identification Number).
    • If necessary, VAT registration (standard rate 19%).

  6. Starting a business

    • Once the formalities have been completed, the company can operate and enter into commercial agreements.

Costs

  • Company registration: approx. €2,000 (depending on the services of a lawyer or consultant).
  • Annual maintenance (accounting, reports, fees): €1,500–€3,000.

Company obligations

  • Filing of Annual Financial Returns (Annual Return).
  • Accounting according to International Financial Reporting Standards.
  • Annual registry fee: €350.

Summary

Setting up a company in Cyprus is relatively easy and quick. Thanks to low taxes, favourable regulations and a business-friendly environment, Cyprus remains one of the most attractive locations for doing business in Europe.

This article is for informational purposes only and does not constitute legal or tax advice. It is advisable to consult a local advisor before commencing business activities.