Company
registration
in Cyprus

Cyprus is one of the few jurisdictions suitable for both small and large IT enterprises. Since joining the European Union in 2004, it has signed double taxation treaties with over 40 countries. By registering in Cyprus, entrepreneurs can enjoy all the benefits of a European business and obtain an internal VAT number. Additionally, business setup can grant residency to all directors & their family members.

Benefits of doing business in Cyprus with Finevolution

• Full company registration within agreed timeframes
• Assistance with opening a bank account
• Post-registration maintenance
• Accounting & legal support

Choosing a business structure in Cyprus

When planning to start in Cyprus, it’s important to select a structure that best fits your operations. The most common option is the LTD, which protects owners’ personal assets and offers simple management rules. For larger enterprises or firms aiming for a stock market listing, consider a public PLC, partnership, or branch setup. Our material on Cypriot businesses provides more detailed information.

Documents required for business registration in Cyprus

For each individual associated with the business (Beneficiary, Director/Secretary, Shareholder, Trustee), the following must be provided:

• Passport/ID (preferably an international passport) notarized, audited, or certified by a bank
• Proof of address (utility bill)
• Bank reference letter
• Signed and dated resume
• Completed client form (KYC)

Steps for registering a business in Cyprus

• Initial consultation with Finevolution specialists to determine company structure
• Name selection and verification; approval by the Registrar
• Completion and signing of KYC forms; providing due diligence documents for the beneficiary & signatory
• Agree on business structure (directors, shareholders, secretary & address)
• Company registration with the Registrar and signing of the Indemnity Letter by the beneficiary
• Apostille of company documents obtained from the Registrar (4 certificates and memorandum)
• Preparation of additional documents (trust declarations, notarized powers of attorney, etc.)
• Tax ID registration and opening a payment system or bank account

Registration timeline

The complete process typically takes 1 to 2 months. Registration timelines may extend if the process starts during national holidays.

What’s included in the Cyprus registration package?

The Cyprus company registration package includes:

• Business registration (with 19% VAT)
• Document package in English with apostille
• KYC procedure for one founder
• Power of attorney for limited actions without apostille (or with apostille)
• Courier delivery of documents
• Beneficiary registration in the electronic register one month after company setup
• Tax Department registration
• Accounting costs are determined after technical assessment

Basic taxation for Cypriot companies

Holding companies receive dividends from subsidiaries, with key tax details as follows:

• Corporate income tax on dividend-receiving companies is 12.5%, applicable only if the company earns passive investment income
• 0% tax if the income is from active subsidiaries
• 0% tax on dividend payments
• Standard VAT rate is 19%, with reduced rates of 5% and 9% applicable in some cases
• Dividend payments to individual Cypriot tax residents are taxed at 0%
• Dividend payments to non-resident individuals are 0% in Cyprus, plus personal income tax in their country of residence

Auditing and reporting for Cypriot companies

Every Cypriot company must prepare & submit annual financial statements, subject to audit, regardless of business activity. Audits are conducted by independent auditors or firms.

Filed financial statements are publicly accessible after payment of a fee. In addition, Cypriot companies must submit an annual return to the Registrar, updating key set up details such as address, directors, shareholders, and share capital.

If annual taxable transactions in Cyprus or EU countries exceed €15,600, VAT registration is mandatory. VAT returns and tax payments are made online through the TAXISnet portal.

Our team is ready to provide business & legal consultations, prepare all necessary documents, and complete the registration. Send a request through the form below or a message on Telegram bot/Viber, WhatsApp chat, for consultations. Our working hours are 9:00-19:00 from Monday to Friday.