Setting up a company in Cyprus in 2025 offers investors a strategic EU base with tax advantages. This guide walks you through the process of company formation, banking, and compliance.
Executive Summary
- Corporate tax rate: 12.5% (among EU’s most competitive)
- Timeline for company formation: 5-7 business days
- Initial capital requirement: €1,000 (standard)
- Key benefits: EU market access, extensive double tax treaties, strong legal framework
- Common structures: Private Limited Company (LTD), Branch Office, Representative Office
Understanding Cyprus’s Business Appeal
Strategic Advantages
Cyprus offers unique benefits that make it particularly attractive for international business operations. The island’s position at the crossroads of Europe, Asia, and Africa, combined with its EU membership, creates unparalleled opportunities for global trade.
Tax Benefits
The Cyprus tax system provides significant advantages for international businesses:
- 12.5% corporate tax rate
- No withholding tax on dividends to non-residents
- Extensive network of double tax treaties with 65+ countries
- Notional interest deduction on new equity
- Tax exemption on foreign dividend income (subject to conditions)
Step-by-Step Company Formation Process
1. Business Structure Selection
Your choice of business structure impacts everything from taxation to operational flexibility. Most international businesses opt for a Private Limited Company (LTD) due to its:
- Limited liability protection
- Flexible shareholding structure
- Minimal capital requirements
- Clear regulatory framework
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2. Name Registration and Approval
The company name must be approved by the Cyprus Registrar. We offer two options:
- Selection from pre-approved names (immediate availability)
- Custom name application (additional 4 business days)
3. Documentation Requirements
Essential documents include:
- Memorandum and Articles of Association
- Director and shareholder information
- Proof of registered office address
- Ultimate Beneficial Owner (UBO) declaration
For international clients, we provide comprehensive document preparation services, ensuring compliance with Cyprus regulations while minimizing bureaucratic hurdles.
4. Corporate Substance Requirements
Cyprus has implemented substance requirements to maintain its reputation as a legitimate business jurisdiction. Key elements include:
- Local registered office
- Resident director
- Corporate secretary
- Physical presence (recommended for larger operations)
We offer tailored substance solutions ranging from virtual office services to full operational setup, including:
- Business address with mail handling
- Dedicated phone lines
- Office space
- Local staff recruitment
- Payroll management
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5. Banking and Financial Services
Cyprus offers robust banking options for corporate entities:
- Traditional bank accounts with Cyprus banks
- Electronic Money Institution (EMI) accounts
- International banking relationships
Our banking support services include:
- Account application assistance
- Documentation preparation
- Relationship management
- Signatory services
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Ongoing Compliance and Administration
Regular Filing Requirements
- Annual financial statements
- Tax returns
- VAT returns (if applicable)
- UBO registry updates
- Employer obligations (if applicable)
Corporate Maintenance
We provide comprehensive corporate services including:
- Board meeting administration
- Shareholder resolution preparation
- Regulatory compliance monitoring
- Document safekeeping
- Annual return filing
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Cost Considerations
Company formation and maintenance costs vary based on your specific needs and operational scale. Key factors include:
- Initial formation requirements
- Selected substance package
- Banking requirements
- Ongoing compliance needs
We provide transparent pricing with no hidden fees, tailored to your business requirements.
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Expert Support at Every Step
Our team of corporate services professionals brings decades of experience in Cyprus company formation and administration. We provide:
- Dedicated account managers
- Multi-language support
- 24/7 client portal access
- Regular compliance updates
- Proactive advisory services
Getting Started
Establishing your business in Cyprus is a strategic decision that requires careful planning and expert guidance. Our team is ready to assist you at every step, ensuring a smooth and compliant setup process.
This guide was last updated: February 2025
