Cyprus – Company Incorporation

Cyprus Key Points

  • Time – 5 days to incorporate your company
  • Directors – only one director of any nationality, is necessary for your company
  • Shareholders – only one shareholder required of any nationality
  • Share Capital – the share capital requirement is only €1,708
  • Tax – low corporation tax
  • Tax – no taxation on dividends and no Capital Gain Tax on sales of securities
  • Support – using our 20 years experience we guide you throughout every step of the company formation process
  • A Cypriot company must appoint a company secretary, which we will arrange for you
  • More than 40 double tax treaties concluded with other countries

Private Limited Company

Type of Company Designated as Limited but called IBC.
Disclosure of Beneficial Owner Yes, authorities don’t make the information public
Tax on Offshore Profits 12.5%
Corporate Requirements
Minimum Number of Shareholders/Members One
Minimum Number of Directors/Managers One
Corporate Directors/Managers Permitted Yes
Company Secretary Required Yes
Standard Authorised Capital €1,708
Local Requirements
Registered Office/Agent Yes
Company Secretary No, but advisable
Government Register of Directors/Managers Yes
Government Register of Shareholders/Members Yes
Annual Requirements
Annual Return Yes
Submit Accounts Yes

Advantages of a Cyprus Company

  • A great degree of respectability
  • Cyprus is not considered to be a tax haven but a tax incentive country.
  • No withholding of tax on dividends.
  • No capital gains tax.
  • Freely transferable accounts of any currency may be kept either in Cyprus or anywhere abroad without any exchange control restrictions.
  • No exchange control restrictions once the approval for the registration of the company is granted by the Central Bank of Cyprus.
  • All expenses incurred for the earning of income as well as annual allowance on fixed assets are allowed as deductions.
  • Company’s foreign employees working in Cyprus are liable to personal income tax at a rate from 0 to 20% and if working outside Cyprus but receiving their salary through Cyprus at a rate from 0 to 2%.
  • The net profits of the company are subject to a corporate tax at the flat rate of 12.5% and if such profits are derived from dividends received from another Cyprus offshore company, then no further tax is payable other than the flat rate of 10% paid only by the distributing company. This rate is paid irrespective of whether they are managed and controlled from Cyprus or elsewhere.
  • Shareholders are not liable to an additional tax on dividends over and above the amount of corporate tax paid by the company.
  • Exemption from stamp duty on any contracts entered into by offshore entities.
  • No estate duty on the inheritance of shares, provided the deceased was not domiciled in Cyprus.
  • Duty free facilities are extended to offshore companies maintaining an office in Cyprus and to their expatriate personnel in respect of motor vehicles, office equipment and household effects.
  • Cyprus has a wide network of double tax treaties with many countries, including Russia and other former eastern block countries. Specifically with reference to Russia, the tax treaty provides for zero withholding tax on dividends paid from Russia to a Cyprus company as well as on gains generated by Cyprus companies from the disposal of securities in Russia.
  • An offshore entity is not subject to any capital gains tax except on gains arising from the disposal or immovable property held in Cyprus.
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