Article by Xenia Neophytou, updated May 2025
How to set up a limited company in Cyprus? If you are interested in forming a Cyprus company, below we will explain the steps needed for it.
Cyprus has managed to become a dynamic business and investment hub that can offer opportunities across a wide range of sectors to professionals, entrepreneurs, and investors from around the world. The island is attractive for setting up a company, partnership, or trust for many reasons..
In this article, the Xenia Neophytou, CX Financia CEO, explains the process of Cyprus company formation, covering the key steps and considerations for a successful setup.
- A minimum share capital of €25,629.
- At least seven shareholders.
Branch of a Foreign Company
Foreign companies can establish branches in Cyprus without creating separate legal entities. This option allows businesses to expand operations while maintaining their existing corporate structures.
International Business Company (IBC)
Ideal for non-resident businesses engaged in international trade or holding activities. IBCs benefit from Cyprus’ favorable tax regime while focusing on global operations.
Step-by-Step Guide to Setting Up Your Business in Cyprus
1. Choose a Business Name
Submit your proposed company name to the Registrar of Companies for approval. The name must be distinct and comply with local regulations.
2. Prepare Required Documents
You will need:
- Memorandum and Articles of Association outlining your company’s purpose and structure.
- Forms HE1 (lawyer’s affidavit), HE2 (registered office address), and HE3 (details of directors/secretary).
- Identification documents for directors and shareholders.
3. Appoint Directors and Secretary
Every company must have at least one director and one secretary. While directors can be non-Cypriots, appointing local directors can help establish tax residency status.
4. Register an Office Address
Your company must have a registered office address in Cyprus where official communications will be sent.
5. Submit Your Application
Once all documents are prepared, submit them to the Registrar of Companies. Upon approval, you will receive:
- Certificate of Incorporation.
- Certificates confirming your registered office address, directors/secretary, and shareholders.
6. Open a Bank Account
A corporate bank account is essential for managing your company’s finances effectively. Learn more about our banking setup services.
7. Register with Tax Authorities
Obtain a Tax Identification Number (TIN) from the Tax Department and register for VAT if applicable. For ongoing compliance needs, explore our tax compliance services.
Frequently Asked Questions About Cyprus Company Formation
How long does it take to register a company?
The Cyprus Company Formation process typically takes 7–10 working days once all required documents are submitted. However, preparation time may vary depending on how quickly you gather documentation such as identification papers or financial statements. Working with experienced professionals can expedite this process by ensuring all paperwork meets regulatory requirements from the outset.
Can foreigners set up companies in Cyprus?
Yes, foreigners can fully own and operate companies in Cyprus without restrictions on ownership or control. The country welcomes foreign investors with equal rights as Cypriot nationals when it comes to business formation. Additionally, there are no limitations on repatriating profits or capital gains earned through business activities in Cyprus.
What’s the minimum share capital required?
For private limited companies (Ltd), there is no minimum share capital requirement—making it accessible even for smaller startups or individual entrepreneurs. Public limited companies require a minimum share capital of €25,629 due to their larger scale operations and potential public listings.
Do I need local directors or shareholders?
While it is not mandatory to appoint local directors or shareholders, having them can help establish tax residency for your company in Cyprus—a crucial factor if you wish to benefit fully from its favorable tax policies. Many foreign investors opt for nominee services provided by local professionals to meet this requirement while retaining operational control over their businesses.
How CX Financia Can Assist with Cyprus Company Formation and Setup
Cyprus company formation involves navigating various legal and administrative processes—but we make it seamless by offering comprehensive assistance tailored to your needs
- Document Preparation: We assist with preparing all necessary documentation required for company registration.
- Streamlined Applications: Through our network of professionals, we fast-track applications with the Registrar of Companies.
- Corporate Structure Advice: We provide expert guidance on selecting the most suitable corporate structure based on your goals.
- Ongoing Support: Our team offers continued assistance with accounting services, tax compliance, banking setup, VAT registration, payroll management, and more.
Partnering with CX Financia ensures a smooth and compliant Cyprus company formation. We handle all the setup details, allowing you to focus on growing your business. For inquiries, do not hesitate to contact us at inquire@cxfinancia.com
Cyprus offers unparalleled opportunities for businesses seeking growth within Europe and beyond. With its attractive tax policies, strategic location, and supportive business environment, it is an excellent choice for entrepreneurs looking to expand their global presence. Contact us today to discuss how we can help you establish your business in Cyprus seamlessly—and unlock new opportunities for growth!