Company Registration in Cyprus: Benefits, Business Forms, Taxes, and Step-by-Step Guide

Cyprus has long maintained its status as one of the leading jurisdictions for international business. Why do companies choose to register in Cyprus? Primarily due to:

• One of the lowest corporate tax rates in the EU.
• Access to an extensive network of double tax treaties.
• A stable banking system and transparent legal environment.

All of this makes the island an attractive option for entrepreneurs seeking to expand their businesses internationally. However, setting up a company in Cyprus involves legal nuances that require a professional approach.

Our law firm has been assisting Ukrainian entrepreneurs in establishing businesses abroad for over 10 years, including company registration in Cyprus, from selecting the legal structure to obtaining all necessary registration documents. We understand the challenges entrepreneurs face: how hard it is to find reliable information, choose the right entity type, and avoid wasting time on bureaucracy.

In this article, we’ve compiled the essentials—what truly matters. We’ll walk you through the key advantages of the Cypriot jurisdiction, the company formation process, structural requirements, and tax considerations you should understand before getting started. Whether you’re planning to scale or simply want to optimize your tax burden, this information will be of value.

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What Are the Advantages of Starting a Business in Cyprus?

For Ukrainian entrepreneurs, registering a business in Cyprus is a strategic move that enables expansion into the European market, tax optimization, and increased trust from international partners. Overall, Cyprus offers several advantages that make it one of the top choices for running an international business:

• EU membership – a company registered in Cyprus is entitled to operate across all EU member states.
• Low corporate tax of just 12.5%.
• An extensive network of double taxation treaties with over 60 countries, including Ukraine.
• High level of owner confidentiality and flexible corporate structures.
• Opportunity to obtain a residence permit in Cyprus and become a Cyprus tax resident.

Are There Any Drawbacks to Starting a Company in Cyprus?

Despite its many advantages, setting up a company in Cyprus also comes with certain drawbacks that should be considered in advance. Firstly, the VAT rate stands at 19%, which is relatively high by EU standards, although reduced rates of 5% and 9% apply to specific goods and services.

Additionally, Cypriot law requires annual audits of financial statements, which demands extra time and resources.

Another challenge is the lengthy client due diligence process when opening a company or bank account in Cyprus. Due to stricter anti-money laundering regulations, account opening procedures can be significantly delayed.

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Types of Business Entities in Cyprus

Cyprus offers several popular business structures depending on a company’s goals and scale of operations.

1. Private Limited Company (LTD). The most common structure for small and medium-sized businesses, which is ideal for those looking to establish an LLC in Cyprus. It can be registered with just one shareholder and one director. There is no minimum share capital requirement, allowing for a low-cost launch. Suitable for sectors such as IT, trade, real estate, services, and international business.

2. Public Limited Company (PLC). Designed for larger enterprises planning to raise capital through share issuance. Requires at least two shareholders, two directors, and a minimum share capital of €25,630. Falls under the supervision of the Cyprus Securities and Exchange Commission (CySEC).

3. Branch of a Foreign Company. A suitable option for businesses already operating abroad and looking to expand into the EU. This form allows a foreign company to operate in Cyprus without establishing a separate legal entity. The parent company bears full responsibility for the branch’s activities. Ideal for expanding EU presence and relocating staff under the ICT program.

4. Cyprus International Trust (CIT). Used for asset management, estate planning, and tax optimization. A trust ensures confidentiality, asset protection, and can operate both in Cyprus and internationally. For those seeking effective financial control and tax minimization, this may be the most suitable option.

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How to Register a Company in Cyprus

For non-residents, setting up a company in Cyprus is a relatively straightforward process that can be carried out through the Department of Registrar of Companies and Intellectual Property (RCOR). As mentioned earlier, the most common business structure is the Private Limited Company (Ltd).

So, what steps are required to successfully register your company in Cyprus?

1. The first step is to submit an application to the Department of Registrar of Companies and Intellectual Property (RCOR) for company name approval. The application may include up to three name options (which must be unique), increasing the chances of approval. The review typically takes 3–4 business days, after which the approved name is reserved for six months

2. Under Cypriot law, company registration must be carried out by a lawyer who is a member of the Cyprus Bar Association. The lawyer is responsible for preparing the company’s key documents, including the memorandum and articles of association, which define the company’s activities, management structure, and internal rules.

3. Once the documents are prepared, the lawyer submits the complete package to the RCOR.

The application package includes:

• Signed forms (Form HE1).
• Memorandum and Articles of Association in Greek.
• Details of directors, shareholders, and secretaries
• Proof of a registered office address in Cyprus.
• An affidavit signed by a licensed lawyer
• Payment of the registration fee.

The submission process can be completed online, which is convenient for foreign applicants who wish to start a business in Cyprus but are unable to visit the island in person.

4. Once the documents are submitted, the RCOR reviews them and, if all requirements are met, issues a Certificate of Incorporation.

5. To register a company in Cyprus, at least one director and one secretary must be appointed. The role of director can be held by either a Cypriot resident or a non-resident.

At the same time, it is often recommended to appoint a local (resident) director, as this helps meet the “substance” requirements—demonstrating the company’s real presence in Cyprus—and grants access to the jurisdiction’s tax benefits.

The company secretary is responsible for administrative compliance and, if needed, may serve as a nominee.

6. After the legal entity is officially incorporated in Cyprus, a number of mandatory steps must be completed:

• Open a corporate bank account with a financial institution operating in Cyprus.
• Obtain a Tax Identification Number (TIN), and if the annual turnover exceeds €15,600, register the company for Value Added Tax (VAT).
• If the company intends to engage in regulated activities, obtain the necessary permits or licenses.
• If hiring employees, register with the Ministry of Labour, Welfare, and Social Insurance of Cyprus.

Taxation in Cyprus: What Companies Need to Know

A legal entity is considered a tax resident of Cyprus if its management and control are exercised directly from within Cyprus. Additionally, companies registered in Cyprus that are not tax residents of another country (as per amendments effective December 31, 2022) are also deemed Cypriot tax residents.

Key taxes in Cyprus:

• Corporate income tax – 12.5%, one of the lowest rates among EU member states.
• Value Added Tax (VAT) – the standard rate is 19%, with reduced rates of 9% and 5%, and a 0% rate applicable to certain categories of goods and services.
• Passive income, including dividends and interest, is not subject to tax (0%) regardless of whether it originates from Cyprus or abroad.

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How Long Does It Take to Set Up a Company in Cyprus?

Registering a company in Cyprus typically takes around 30 days. This timeframe includes name approval, preparation of incorporation documents by a lawyer, and submission to the government registry. If all documents are submitted promptly, the process may be completed sooner.

A Turnkey Solution for Your Business in Cyprus

We understand that starting a business abroad is a strategically important and highly responsible step that requires precision at every stage, experience, and complete legal transparency. That’s why our law firm offers end-to-end support for company registration in Cyprus, allowing you to focus on business development and personal matters while we handle the rest. With us, you’ll receive:

• Company name selection and availability check.
• Preparation of incorporation documents tailored to your business goals.
• Company formation in Cyprus through an authorized Cypriot lawyer.
• Provision of a registered legal address and nominee services
• Opening of a corporate bank account.
• Tax identification number, VAT registration, and licensing assistance.
• Post-registration support, including tax and accounting services.

We don’t work with templates—only tailored, risk-free solutions designed specifically for your business, in full compliance with Cypriot law and international regulations. We handle all formalities so you receive a fully registered company with minimal involvement on your part.

Submit your request today and take the first step toward building a stable international business with a trusted partner.