How to Set Up a Company
in Cyprus: The Complete Guide
Everything you need to know about Cyprus company formation — legal structure, step-by-step registration process, government fees, tax advantages, annual obligations, and how to set up a business account. Written for international entrepreneurs and investors considering Cyprus as their EU base.
15%
Corporate tax rate (2026)
5–10
Days to register
60+
Tax treaty countries
0%
Capital gains on shares
Written by Renato Giurea, founder of CyPRO One · Updated 24 September 2026
Regulated work described on this page is carried out by licensed Cyprus partners.
Why Cyprus for Company Formation?
Cyprus has been an EU member state since 2004 and is a common law jurisdiction with a legal system based on English law. Its Companies Law (Cap. 113) closely mirrors the UK Companies Act, making it familiar to international legal and financial professionals.
The island has established itself as one of Europe's premier business destinations due to a combination of factors: a flat 15% corporate tax rate (raised from 12.5% under the 2026 tax reform), an extensive network of over 60 double taxation agreements, 0% capital gains tax on share disposals, EU single market access, a highly educated English-speaking workforce, and relatively straightforward company formation procedures.
For international entrepreneurs, the most common vehicle is the private company limited by shares — commonly referred to as a Cyprus LTD. This guide walks through everything you need to know about forming and running a Cyprus LTD, from name reservation to annual compliance obligations.
The Cyprus Private Limited Company (LTD)
The Cyprus private company limited by shares (LTD) is the most widely used business entity for international operations. It is governed by the Cyprus Companies Law (Cap. 113) and the Registrar of Companies under the Ministry of Energy, Commerce and Industry.
Limited Liability
Shareholders' liability is limited to the amount unpaid on their shares. Personal assets are protected from company debts.
Separate Legal Personality
A Cyprus LTD is a distinct legal entity — it can own property, enter contracts, and sue or be sued in its own name.
Share Transferability
Shares in a Cyprus LTD can be freely transferred between parties subject to the Articles of Association. No government approval is required.
No Minimum Capital
There is no minimum paid-up share capital. Companies are typically incorporated with nominal capital of €1,000 (1,000 shares × €1).
Single Shareholder
A Cyprus LTD can be incorporated with a single shareholder — an individual or a corporate entity from any jurisdiction.
Single Director
A minimum of one director is required. There is no residency requirement, though substance considerations may apply for banking and tax treaty access.
Other entity types available in Cyprus include partnerships, branches of foreign companies, and Societas Europaea (SE). However, the private LTD is the standard choice for international operations and is the focus of this guide.
Step-by-Step: How to Register a Cyprus Company
Company registration itself is typically completed in 5–10 business days. Getting to active trading also depends on tax registration and business account approval, which are in the hands of the Cyprus Tax Department and your account provider respectively.
Choose a Company Name
1–3 daysReserve a unique company name with the Cyprus Registrar of Companies (RoC). The name must not duplicate any existing registered company and must end in 'Limited' or 'Ltd'. CyPRO One checks availability and submits the reservation on your behalf.
Prepare Incorporation Documents
2–3 daysThe Memorandum and Articles of Association (M&AA) are drafted by a licensed Cyprus lawyer. These define the company's objects, share capital structure, and governance rules. You must also appoint at least one director and one shareholder (which can be the same person).
KYC & Due Diligence
1–5 daysCyprus AML regulations require identity verification for all directors, shareholders, and ultimate beneficial owners (UBOs). Required documents typically include a certified passport copy, a recent utility bill or bank statement, and a source-of-funds declaration.
Submit to Registrar of Companies
5–10 business daysThe licensed lawyer submits the signed M&AA, form HE1 (application), form HE2 (registered office), and form HE3 (directors and secretary) to the RoC. Standard processing is 5–10 working days; expedited registration (same-day or next-day) is available for an additional government fee.
Obtain Certificate of Incorporation
Same day as approvalOnce approved, the RoC issues a Certificate of Incorporation and a unique registration number (ΗΕ followed by digits). The company is now a legal entity. You also receive a Certificate of Directors & Secretary and a Certificate of Shareholders.
Register for Tax (TIC & VAT)
1–3 weeksEvery Cyprus company must register with the Cyprus Tax Department to obtain a Tax Identification Code (TIC). If anticipated annual turnover exceeds €15,600, VAT registration is also required. Our licensed Cyprus accounting partner (ICPAC-registered) makes both registrations, coordinated by CyPRO One.
Set Up a Business Account
VariesYour company needs a business account to operate commercially. Traditional Cyprus banks are slow and frequently reject newly incorporated companies with non-EU directors, so our practical route is a Revolut Business account. We help you prepare and review the KYC file; Revolut requires you, as company representative, to submit the application, and approval timelines are set entirely by Revolut.
Typical Formation Timeline
From engagement to trading-ready company
Timelines are indicative and cannot be guaranteed. Business account approval is decided entirely by the account provider — a complete Revolut Business file is often reviewed within a few business days, while traditional Cyprus banks routinely take 6–18 months and may decline newly incorporated companies outright.
What a Cyprus Company Costs to Run
Cyprus company formation involves one-time incorporation costs and recurring annual maintenance. The main components are:
- Government incorporation fees — Registrar of Companies stamp duty and filing fees, with an optional expedited-processing surcharge for same-day or next-day registration.
- Professional legal fees — drafting of the Memorandum and Articles of Association, RoC submission, and KYC handling, performed by a licensed Cyprus lawyer.
- Registered office (annual) — mandatory Cyprus address for official correspondence, typically provided by a licensed service provider.
- Company secretary (annual) — mandatory under Cyprus Companies Law; responsible for statutory filings.
- Audit or review engagement (annual) — full statutory audit if turnover exceeds €300,000 or gross assets exceed €500,000 (2026 reform); below both thresholds a review engagement may be available. Performed by ICPAC-registered partners.
- Annual return filing — small Registrar of Companies fee for the annual HE32 return.
CyPRO One bundles incorporation, registered office, company secretary, and legal coordination at a transparent fixed price. Use the online builder to see exact pricing for your specific requirements before you commit — it is the only place we publish fees.
Cyprus Tax Advantages
Cyprus is one of the most tax-efficient EU jurisdictions for operating companies, holding structures, and intellectual property. Key advantages include:
15% Corporate Tax Rate
Cyprus levies corporate income tax at a flat 15% (raised from 12.5% on 1 January 2026 under the OECD Pillar Two-aligned 2026 tax reform). This applies to net taxable profits, and many common expenses are deductible.
Notional Interest Deduction
Companies that fund their business with equity rather than debt can claim a Notional Interest Deduction (NID), potentially reducing the effective corporate tax rate to 2–3% on new equity deployed.
0% on Dividend Income
Dividends received by a Cyprus company from qualifying subsidiaries are generally exempt from corporate tax under the EU Parent-Subsidiary Directive and Cyprus domestic law.
0% Capital Gains Tax
Cyprus levies no capital gains tax on the disposal of company shares — unless the shares derive their value from Cypriot real estate. This is one reason Cyprus is widely used by international founders and investors.
IP Box From 3%
Income from qualifying intellectual property — software copyrights and patents — benefits from the Cyprus IP Box regime, which can bring the effective tax rate on that income as low as 3%. Treat that as a floor: the relief is nexus-conditional, so most real cases land above it. Trademarks and brands are explicitly non-qualifying and remain taxed at the standard 15%.
60+ Double Tax Treaties
Cyprus has double taxation agreements with over 60 countries including the UK, US, Germany, Russia, India, Israel, and China — reducing withholding taxes on cross-border payments.
Example: €100,000 profit — Cyprus vs. typical EU comparison
Comparison is illustrative only. The German example uses approximate combined trade and corporate tax and the Abgeltungsteuer on dividends. Non-Dom status requires Cyprus tax residency. Always seek independent tax advice for your specific circumstances.
Ongoing Requirements & Compliance
Every Cyprus company has annual compliance obligations. Failure to meet these can result in fines, penalties, or striking off by the RoC. Here are the key requirements:
Directors
Minimum one director is required. Directors can be individuals or corporate entities. There is no requirement for a Cyprus-resident director, though having one improves substance and is required for certain banking relationships. Cyprus directorships are on the public record.
Shareholders
Minimum one shareholder is required. Shareholders can be individuals or legal entities from any jurisdiction. There is no minimum share capital requirement beyond the nominal amount stated in the M&AA (commonly €1,000 divided into 1,000 shares of €1 each).
Registered Office
Every Cyprus company must maintain a registered address in Cyprus where official correspondence is received. This does not need to be an operational office — a service address provided by a licensed firm (such as CyPRO One's legal partner) is sufficient.
Company Secretary
Cyprus Companies Law requires every company to appoint a company secretary, who may be an individual or a corporate entity. The secretary is responsible for statutory filings including the annual return and updates to the RoC.
Statutory Audit or Review
From financial years beginning on or after 6 February 2026, full statutory audit is required where turnover exceeds €300,000 or gross assets exceed €500,000. Companies below both thresholds for two consecutive years may opt for a review engagement instead. Audit and review work is performed by ICPAC-registered partners.
Annual Return
Each company must file an Annual Return (HE32) with the RoC by the 28th of November each year. Failure to file on time attracts a fixed penalty of €20 plus additional late fees. Returns confirm the company's directors, shareholders, and registered office.
KYC & Anti-Money Laundering Requirements
Cyprus is an EU member state and fully implements the EU's Anti-Money Laundering Directives (AMLD). Cyprus law firms, corporate service providers, and banks are subject to strict Customer Due Diligence (CDD) obligations. All beneficial owners with 25%+ of shares or voting rights must be identified and registered with the Cyprus UBO Registry.
For company formation, you will need to provide the following for every director, shareholder, and UBO:
- Valid passport or national ID (certified copy required for remote formation)
- Proof of residential address (utility bill or bank statement, issued within the last 3 months)
- Source of funds declaration (explaining the origin of funds to be used in the company)
- CV / professional background summary
- Bank reference letter (required by some service providers and banks)
Corporate shareholders and directors require equivalent documentation for the underlying entity, plus a full corporate structure chart showing all beneficial owners. CyPRO One provides a detailed KYC checklist at the start of every engagement and assists with document certification.
Setting Up a Business Account
Your company needs a business account to transact commercially. Cyprus has several licensed local banks, including Bank of Cyprus and Hellenic Bank (Alpha Bank Cyprus merged into Hellenic in 2023), alongside EMI and fintech alternatives such as Revolut Business.
In practice, traditional Cyprus banks are slow and conservative. They apply lengthy KYC processes, often require a face-to-face meeting, and frequently reject newly incorporated companies with non-EU directors — realistic timelines run from 6 to 18 months. For most of our clients that is not a workable starting point.
For that reason, our practical offering is help with a Revolut Business application rather than traditional Cyprus bank account opening. We help you prepare and review the full file — business plan summary, expected transaction profile, and all corporate documents — so you submit something complete. Revolut's onboarding requires you, as the company representative, to submit the application yourself, and approval is entirely Revolut's decision: a complete file is often reviewed within a few business days, but timelines depend on Revolut's current workload and cannot be guaranteed. CyPRO One is not affiliated with Revolut.
Related Services & Guides
Cyprus Company Formation — Register a Cyprus LTD | CyPRO One
End-to-end Cyprus company registration with the Registrar of Companies. Name reservation, KYC, documents, Tax ID, and registered office — fully managed, fully online. 7–14 working days.
Cyprus Company Name Approval — What the Registrar Checks | CyPRO One
How the Cyprus Registrar of Companies approves a company name: the Cap. 113 sections 18 and 19 tests, restricted words and the authorities whose consent you must file, name reservation periods, and why a cleared name is not a trademark.
Cyprus Non-Dom Status Guide 2026 — Eligibility, 60-Day Rule & Tax Savings | CyPRO One
Complete guide to Cyprus Non-Domicile (Non-Dom) status: eligibility criteria, the 60-day rule, how to apply, real tax savings examples, and how Non-Dom combines with a Cyprus company for a 15% effective tax rate.
Cyprus Company for E-commerce Sellers | CyPRO One
Selling into 27 VAT regimes from one company: the €10,000 line, OSS and IOSS through Cyprus, the €150 marketplace rule, and what stock abroad really costs you.
For information purposes only
This guide is intended as a general introduction to Cyprus company formation. It does not constitute legal, tax, or financial advice. Laws, regulations, and government fees are subject to change. The impact of any structure on your specific circumstances depends on your country of residence, existing obligations, and business activities. Always seek independent professional advice before making incorporation or residency decisions.
Frequently Asked Questions
Can a foreigner set up a company in Cyprus?
Yes. There is no restriction on nationality for Cyprus company formation. Foreign nationals can be the sole director and sole shareholder of a Cyprus LTD. The entire process can be completed remotely without ever visiting Cyprus, using certified copies of identity documents.
How long does Cyprus company formation take?
Standard registration with the RoC takes 5–10 business days after submission. If you use the expedited service (available for an additional government fee), registration can be completed in 1–2 business days. Getting to a fully trading company also depends on tax registration and business account approval, both of which sit with third parties and cannot be guaranteed.
What is the minimum share capital for a Cyprus LTD?
There is no statutory minimum share capital requirement in Cyprus. Most companies are incorporated with a nominal share capital of €1,000 divided into 1,000 ordinary shares of €1 each. The share capital does not need to be paid up at incorporation.
Does a Cyprus company need a physical office?
No. A registered office address — which can be a service address provided by a licensed firm — is sufficient for legal compliance. However, if you want your company to be treated as a Cyprus tax resident and to benefit from the Cyprus double tax treaty network, you should ensure the company's management and control is exercised from Cyprus. This typically means having at least one Cyprus-resident director who participates in board decisions.
What is the Cyprus company annual maintenance cost?
Annual running costs for a Cyprus LTD include: a registered office, a company secretary, an audit or review engagement (the choice depends on whether you exceed the €300k turnover / €500k gross-assets thresholds introduced in 2026), corporate tax return preparation, and the small annual return filing fee charged by the Registrar of Companies. The previous €350 annual government levy was abolished from 2024 and no longer applies. For specific pricing on each of these components, use the online builder — that is the only place where CyPRO One publishes fees.
Is a Cyprus company suitable for holding shares in other companies?
Yes — a Cyprus LTD can legally hold shares in other companies, and Cyprus is widely used as an EU holding jurisdiction. Dividend income received from subsidiaries is generally exempt from Cyprus corporate tax (subject to the participation exemption conditions). Capital gains on the disposal of shares are also exempt, unless the shares derive their value from Cypriot real estate. CyPRO One does not advise on multi-jurisdiction holding-company tax structuring — that work requires a specialist Cyprus tax advisor and we recommend you engage one directly before deciding on a structure.
Do I need to visit Cyprus to form a company?
No. The entire process is fully remote. Identity documents are certified (apostilled or notarised), powers of attorney are signed remotely, and all filings are handled digitally by CyPRO One's legal partner. Some banks may request an in-person meeting for account opening, but many digital banking options are available without travel.
What ongoing accounting obligations apply?
Cyprus companies must maintain proper accounting records, prepare annual financial statements in accordance with IFRS, and file a corporate income tax return (IR4/TD4). From the 2026 tax year the return is due by 31 January of the second year following the tax year — so the 2026 return is due by 31 January 2028, together with the final balancing payment. (Returns for tax years up to 2025 ran to the earlier 31 March deadline, also in the second following year.) Provisional tax is paid in two self-assessment instalments during the tax year itself, in August and December. VAT returns are filed quarterly if VAT-registered.