Cyprus Company Formation

The low rate of corporate tax, the extensive double tax treaty network, and the highly educated and skilled workforce are only a few of the reasons that make Cyprus the ideal place to form an international business.

A trusted partner by your side will be able to guide you through the process in a way that will maximise after-tax returns and optimise capital and financial resources.

Registering a company in Cyprus is a rapid and straight-forward procedure that is generally completed within a few days. Cyprus Company registration begins with an application to be submitted to the Registrar of Companies.

Cyprus Company formation includes certain procedures and undertakings prior to the registration of the company, such as the drafting of the Memorandum and Articles for the company, a document which outlines the rights and obligations of the shareholders. 

Benefits of Forming a Company in Cyprus

Forming a company in Cyprus offers numerous advantages, making it an attractive option for businesses and investors. Here are some key benefits:

Tax Benefits

1. Low Corporate Tax Rate: Cyprus has one of the lowest corporate tax rates in the European Union at 12.5%.
2. Tax Exemptions: There are various tax exemptions available, such as no tax on dividends, interest, or royalties received by a Cyprus company from abroad under certain conditions.
3. Double Tax Treaties: Cyprus has an extensive network of double tax treaties with over 60 countries, reducing the tax burden on international transactions.
   
   

Strategic Location

1. Gateway to Europe and the Middle East: Cyprus’s strategic geographical position makes it a gateway for trade and investment between Europe, Asia, and Africa.
2. EU Membership: As a member of the European Union, Cyprus provides access to the EU’s single market.
   
   

Legal and Regulatory Advantages

1. Common Law System: Cyprus follows a legal system based on English common law, providing a familiar and reliable legal framework for businesses.
2. Favorable IP Regime: The Cyprus Intellectual Property (IP) box regime offers significant tax benefits for income derived from IP assets.
   
   

Business-Friendly Environment

1. Ease of Doing Business: Cyprus ranks highly in terms of ease of doing business, with straightforward company formation procedures and a supportive regulatory environment.
2. Modern Infrastructure: The country boasts a modern and efficient infrastructure, including advanced telecommunications and banking systems.
   
   

Financial and Investment Incentives

1. Investment Opportunities: The Cypriot government offers various incentives to attract foreign investment, including grants and subsidies for certain industries.
2. Access to Funding: Companies in Cyprus have access to a variety of funding options, including European Union funds and local financial institutions.
   
   

Skilled Workforce

1. Highly Educated Workforce: Cyprus has a well-educated, multilingual workforce, with a high proficiency in English, which is the primary business language.
2. Professional Services: The country has a strong presence of professional services, including legal, accounting, and consulting firms, which support business operations.
   
   

Quality of Life

1. High Standard of Living: Cyprus offers a high quality of life with excellent healthcare, education, and a safe living environment.
2. Attractive Lifestyle: The Mediterranean climate, rich cultural heritage, and natural beauty make Cyprus an attractive place to live and work.
   
   

Steps to Form a Company in Cyprus

Forming a company in Cyprus involves several clear steps that ensure legal compliance and proper setup. Here is a concise guide:

1. Choose a Company Name: Select a unique name for your company and get it approved by the Cyprus Registrar of Companies. Ensure the name is not already in use and meets the registrar’s naming guidelines.
   
   
2. Prepare the Required Documents:
   • Memorandum and Articles of Association: Draft these documents outlining the company’s constitution and operational framework.
   • Shareholder and Director Information: Provide details of the company’s shareholders, directors, and secretary.
     
     
3. File an Application: Submit the required documents along with the application form to the Registrar of Companies. This includes the Memorandum and Articles of Association, and details of the company’s registered office.
   
   
4. Register for Tax: Once the company is incorporated, register it with the Cyprus Tax Department to obtain a Tax Identification Number (TIN). This step is essential for compliance with local tax laws.
   
   
5. Register for VAT (if applicable): If your company’s annual turnover exceeds the VAT threshold, register for Value Added Tax (VAT) with the Cyprus VAT Service.
   
   
6. Open a Bank Account: Open a corporate bank account in Cyprus. This will be necessary for conducting business transactions and managing the company’s finances.
   
   
7. Comply with Local Employment Laws: If you plan to hire employees, ensure compliance with Cyprus employment laws, including registration with the Social Insurance Department.
   
   

How can CX Financia help?

Our qualified team of financial experts is here to help you understand everything you need to know about starting a company in Cyprus through a comprehensive range of accounting, fiduciary, tax, and advisory services:

Our full suite of corporate services includes:

• We’ll help you understand and choose among the different types of organizational structures for international businesses
• Our team will guide you through the process of registering and re-domiciling your company.
• From drafting the articles and shareholder agreements to opening bank accounts, we’ll manage all administrative work so you can focus on the things that matter most.

We can work shoulder to shoulder with you on your Cyprus company formation.