Register a company in cyprus

The Cyprus Company

The Republic of Cyprus provides numerous tax benefits and exemptions for Cyprus-based companies, which can be leveraged for various purposes, such as holding assets and shares in other companies, serving as an investment vehicle, integrating into a global corporate structure, or establishing headquarters for international business operations.

Company registration in Cyprus involves incorporating a legal entity, the Company. The most common type of Company formed is a private company limited by shares, which limits shareholders’ liability to the amount of their shares.

Advantages of a Cyprus Company

Attractive Tax Environment

Cyprus boasts one of Europe’s lowest corporate tax rates at 12.5%, making it an appealing destination for investors, entrepreneurs, and international businesses aiming to establish operations within the EU. Cyprus companies benefit from an extensive network of double tax treaties with over 60 countries, significantly reducing tax liabilities. Dividends paid to a Cyprus tax resident company are exempt from corporate tax under certain conditions, and there is no withholding tax on dividends received from EU subsidiaries, thanks to the EU Parent-Subsidiary Directive. Additionally, the Cyprus IP tax regime offers up to 80% tax relief on profits from intellectual property, potentially lowering the effective tax rate to as little as 2.5%.

Ease and Flexibility

Setting up a company in Cyprus is straightforward and efficient, typically taking around ten working days with minimal bureaucracy and low registration fees. Foreign ownership is fully permitted, allowing non-residents to incorporate a company remotely without the need to be physically present in Cyprus. The law also supports the re-domiciliation of companies, enabling businesses to move their headquarters to or from Cyprus without losing their corporate identity. This flexibility, combined with a simple corporate structure that requires only one shareholder and one director, makes Cyprus an attractive and practical choice for international business operations.

Why You Should Setup a Company in Cyprus

• Business-Friendly – some of the lowest Corporate Tax in Europe – 12.5% on its net revenues.
• Dividend participation exemption. No withholding taxes on dividend, interest and royalty payments abroad.
• Personal tax exemptions for new residents and non-domiciled individual. DTT with more than 60 countries.
• EU company – do business in Europe or any other country in the world without any restrictions.
• No thin capitalization rules, no exchange controls and no capital gains tax (except on real estate in Cyprus)
• No tax is paid on any profits made by trading in its own shares or shares of other companies such as stocks, bonds etc.

Legal Requirements for Cyprus Company Formation

1. Drafting of the Memorandum and Articles of Association in Greek/English
2. Affidavit before the Registrar of the Court confirming that all the provisions of Law were fulfilled in connection with the establishment of the Cyprus Company.
3. Preparation of the relevant Forms with the personal details of the Shareholders, the Directors and the Secretary of the Cyprus Company.
4. Preparation of the Relevant Form with the Registered Office Address of the Cyprus Company.
5. Filing of the Memorandum and Articles of Association along with the other Forms and documents with the Registrar of Companies for the registration of the Cyprus Company.
6. Filing application and payment of acceleration fees to the Registrar of Companies for the acceleration of the registration of the Cyprus Company.
7. Issuance and collection from the Registrar of Companies of the following documents:

• • Memorandum and Articles of Association in Greek certified by the Registrar of Companies.
  • Memorandum and Articles of Association in English certified by a lawyer.
  • Registration Certificate.
  • Certificate of the Registered Office of the Cyprus Company.
  • Certificate of the Shareholders of the Cyprus Company.
  • Certificate of the Directors and the Secretary of the Cyprus Company.

8. Conduct of the First General Assembly of the Cyprus Company.
9. Drafting of the minutes of the First General Assembly of the Cyprus Company.
10. Preparation of the Shares Register of the Cyprus Company (maximum 1000 ordinary shares at €1 each. No need to be paid by the shareholder/UBO).
11. Preparation of the Officers Register of the Cyprus Company.
12. Round Rubber stamp
13. Drafting of the following documents, as applicable:

• • Declaration of Trust signed by the nominee(s) shareholder(s).
  • Letter of Indemnity of the beneficial owner confirming to the nominee(s) shareholder(s) and director(s) that he will not violate the Law or use the Company in any wrong or illegal way.