Step by Step Guide to Incorporating in Cyprus
The first step to register your new company in Cyprus is to check the availability of your proposed company name.
We will carry out a Free Company Namecheck with the Registrar of Companies.
Select a name for your LLC
- Your company name will need the suffix LLC, LTD
- Submit your company name to us and we obtain approval from the Registrar of Companies
- We can reserve your LLC name for up to ten days
- You are not allowed to use a name which is either identical or deceptively similar to one that is already used by another corporation
- Company names can be expressed in Greek, provided that the Registrar receives a Greek or English translation
Select the number of shares each shareholder will have.
- The minimum required share capital is €1,708
- Share capital is in Euros
- Your LLC may issue as few or as many shares as it deems desirable.
- Older companies may have shares denominated in Cypriot Pounds.
Decide who will be the directors of your company.
- Directors may be of any nationality and may reside anywhere.
- Your company only requires one director, although there may be several.
- There is no requirement to appoint a local director.
- The names of the initial directors are stated on the records lodged with the Registrar.
Select who will be the shareholders of your company.
- Only one shareholder is required to form your company in Cyprus
- Shareholders may be of any nationality and may reside anywhere
- Your company only requires one shareholder, although there can be several.
- Corporations are allowed as shareholders.
- Nominee shareholders are allowed. Formacompany can provide this service.
- Cypriot companies need a secretary. You do not require a resident secretary, but if you need to establish tax residency for the company, your company needs to demonstrate that management and control of the company take place in Cyprus. Therefore, and for ease of administration, if any papers need to be signed by local authorities, it is advisable to have a resident secretary
Select a Registered Office
A Cypriot registered office is required for your company. Formacompany can provide this service.
Features of a Cypriot International Business Company
Advantages of incorporating in Cyprus
- Cyprus has the lowest tax rate in the whole of the EU with only 10%
- Only one director and one shareholder are required to form your Cyprus company
- Company documents are produced in English as well as Greek
- Company legislation is based on British company legislation, which is easy to follow
- No withholding of tax on dividends
- It is very easy to get a European VAT number, simply showing that trading activity for which VAT is applicable has started
- Full capital gains tax exemption on capital gains for all non-Cypriot assets
- Full stamp duty exemption on contracts entered into for assets outside Cyprus
- Foreign employees of companies providing their service in Cyprus, are liable to Cyprus income tax at a rate equal to half the normal Cyprus rates; up to 20%
- Residence and work permits for the foreign employees and residence permits for their families can be readily obtained if they maintain an office in Cyprus
- Freely transferable currency accounts can be kept both in Cyprus and abroad. The banking sector is remarkably flexible, and bank accounts can be opened without a visit
Ready made companies are available.
The Government of Cyprus has introduced recently an annual fixed duty of Euro 350 for the active companies. The duty is payable to the Registrar of Companies.
The annual duty for 2011 is payable by 31st December 2011 the latest. There will be penalties for late payment and if duty is not paid within 5 months from due date, ie by 31/05/12, the company will be struck off from Registry.
We will send you scanned copy of the receipt from Registry once we make the payment.