Cyprus Company Formation | Corporate Service
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Cyprus company incorporation package

Services GOLD
1620 USD
PLATINUM
1980 USD
Company registration including government fees
Registered address for 1 year
Apostille
Company seal
Share certificate
Provision of professional shareholder for 1 year  
Provision of professional director for 1 year  
Total cost
1620 USD
1980 USD
Annual renewal fee 980 USD 1940 USD

Advantages of setting up a company in Cyprus with us:

You work directly with a licensed Cyprus Administrative Service Provider (ASP), and thus you get:

Free Consultation

Why open a company in Cyprus?

Here are just a few reasons why businessmen and entrepreneurs may want to open a Cyprus company for their international business:

Open Cyprus Company

Cyprus Private Limited Company

Although Cyprus offers a variety of business organization forms, such as several types of companies and partnerships, as well as branches and even trusts, still the most popular entity to create for business is a Cyprus private company limited by shares, or simply Cyprus Ltd. This type of company is sometimes referred to as LLC.

Cyprus companies may engage in virtually any legal business, but must obtain licences for some regulated activities such as banking, insurance, money lending, or investment advice.

Company Officers

Offshore in Cyprus

A Cyprus company must have a registered office within Cyprus and appoint a secretary, an individual or a company, resident or non-resident. The minimum number of directors and shareholders in a Cyprus private company is one, and there are no legal restrictions as to their nationality or residence, they can also be either individuals or companies. It should be noted, however, that for a company to be treated as Cyprus tax resident and be able to enjoy all the tax benefits, it is advisable to have a Cypriot majority board – thus you can demonstrate that a company is managed and controlled from Cyprus.

What Information is Public?

The details of directors and shareholders are filed with the Registrar of Companies and are made public. The details of beneficial owners are necessarily collected by every ASP as part of their due diligence and KYC obligations, but are not filed with the Registrar of Companies and do not appear on any public register.

The EU 4th Anti-Money Laundering Directive introduced a requirement for the EU Members States to create a register of beneficial ownership of companies, which in the understanding of the European Commission should be publicly accessible. The 5th Anti-Money Laundering Directive further set a specific deadline for putting such register in place throughout the EU. Member States should set up beneficial ownership registers for corporate and other legal entities by 10 January 2020 and for trusts and similar legal arrangements by 10 March 2020. But so far Cyprus has not implemented the provisions of these Directives into its national legislation and has no public register of beneficial owners.

Annual Renewal

After you set up a company in Cyprus, it should be renewed on an annual basis. The company must pay the Annual Levy of EUR 350 (with penalties added in the case of late payment) and submit the Annual Return, which is a form containing the details of all directors, shareholders, registered office and share capital.

Financial Statements

A Cyprus company must annually prepare audited financial statements and submit them to the tax authorities. Audit is required even for dormant companies (companies that have not had any business transactions in the financial year).

Offshore vs. Resident

Cyprus used to distinguish between domestic (onshore) and offshore companies, where offshore companies were not allowed to trade inside Cyprus but enjoyed a beneficial tax regime. The distinction was abolished from 1 January 2003 in the run-up to the country’s accession to the EU and was replaced by a residence-based system of taxation. Now a uniform corporate tax rate (currently 12.5%) applies to all companies that are Cyprus tax residents. A Cyprus company is considered to be a tax resident if managed and controlled from Cyprus and a non-resident if managed and controlled outside Cyprus. Therefore when the expression “a Cyprus offshore company” is used now, it means a Cyprus non-resident company that is not subject to tax in Cyprus.

Banking in Cyprus

Shell Companies

Cyprus bank account

A Cyprus bank account has traditionally been an obvious solution for business banking: no minimum balance, reasonable bank fees, and very few restrictions on the jurisdictions and activities Cyprus banks accepted. Needless to say, companies registered in the “classic” offshore territories such as the BVI, Belize or Seychelles would often have a Cyprus bank account.

Nowadays the banking industry in Cyprus and everywhere else is increasingly under pressure from international organizations to fight money laundering and help ensure transparency of business transactions. In May 2018 the Central Bank of Cyprus issued a circular introducing the concept of “shell companies”, later in November 2018 another circular was released to amend and revise the previous one.

A shell company is currently defined as an entity that:

Despite all that, the following circumstances could indicate economic activity:

  1. the entity is established for the purpose of holding shares of another business entity/ies engaged in legitimate business with identifiable beneficial owners;
  2. the entity is established for the purpose of holding intangible or other assets (including real estate, ship, aircraft, portfolio of investments, debt and financial instruments);
  3. the entity is established to facilitate currency trades and asset transfers, corporate mergers as well as carrying out asset management activities and trading of shares;
  4. the entity acts as a treasurer for companies recognised as a group or manages the activities of the group; or
  5. any other case where convincing evidence can be provided that the entity is engaged in legitimate business, with identifiable ultimate beneficial owner(s).

Apparently, banks will review each case individually and there are no universal recipes to open or keep a bank account.

Substance

In the recent years the laws of many countries have been substantially amended in an effort to increase transparency of international business and close down on tax evasion and treaty shopping. Key offshore jurisdictions, such as BVI, Belize and Caymans, were particularly affected by the coming into force of the economic substance legislation. The scope of economic substance varies from jurisdiction to jurisdiction, but generally the requirement is that the company be physically present in the country of incorporation (have physical premises, hire staff, be managed and controlled from the jurisdiction etc).

Creating minimum substance in the country of the company’s incorporation will, on the hand, make it compliant with local laws and, on the other, increase its chances of opening or keeping a bank account. We provide legal and tax advice on restructuring your business to make it compliant and offer services of creating substance – both in the countries where we have offices and in others.

Free Consultation

General Information

Total area9.250 sq. km
Population862.011 (2012)
CapitalNicosia
Unemployment13.8% (2013)
Corruption perceptions index rank29
Government type Presidential republic
Executive branch Council of Ministers appointed jointly by the President and Vice President
Legislative branch Unicameral parliament: House of Representatives (80 seats; 56 assigned to the Greek Cypriots, 24 to Turkish Cypriots, but only those assigned to Greek Cypriots are filled; members are elected by popular vote to serve five-year terms)
Judicial branch Supreme Court (judges are appointed jointly by the President and Vice President)
GDP per capita rank 37 (2012)

Corporate info

Shelf companies permittedYes
Legal systembased on English common law, with civil law modifications
Incorporation timescale for a turnkey company10 to 30 working days
Cyrillic alphabet permitted in company nameNo
Local registered officeYes
Types of entity Private company limited by shares, Exempt private company, Public company limited by shares, Company limited by guarantee, Branch of overseas company, General partnership, Limited partnership, Sole Proprietorship, Trust
Incorporation timescale for a new company 15 to 25 working days (3 to 6 working days with payment of acceleration fee)
Company suffix Limited; Ltd.
Sensitive words Asset Management, Asset Manager, Assurance, Bank, Banking, Broker(s), Brokerage, Capital, Credit, Currency(ies), Custodian(s), Custody, Dealer(s), Dealing, Deposit(s), Derivative(s), Exchange, Fiduciary(ies), Finance, Financial, Fund(s), Future(s), Insurance, Lending, Loan(s), Lender(s), Option(s), Pension(s), Portfolio, Reserve, Savings, Security(ies), Stock, Trust, Trustees

Shares and share capital

Minimum authorized share capitalNo
Minimum issued share capital1 share
Minimum paid share capitalNo requirements
Authorized capital payment deadlinesNo requirements
Bearer shares permittedNo
Issued capital payment deadlines Immediately upon issue or according to the terms of issue specified in the relevant resolution
Standard currency EUR
Standard authorized share capital 1000
Standard par value of shares 1
Shares with no par value permitted No

Taxes

Min. rate for corporate tax12.5%
Capital gains tax0-20%
VAT19%
Withholding taxdividends - 20%, interest - 30%, royalty - 10%
Exchange controlNo
Personal tax 35%
Corporate tax (in detail) 12.5%
Capital gains tax. Details Profits from buying and selling shares are exempt from tax. Furthermore, there is no capital gains tax except for the 20% capital gains tax applying on gains accruing from disposal of immovable property held in Cyprus and shares in non-listed companies, which own immovable property in Cyprus.
VAT. Details VAT is imposed on the sale of goods and provision of services, as well as on the importation of goods into Cyprus from outside EU. Cyprus VAT legislation provides for three rates: the standard rate 19% (effective as of 14 Jenuary 2014) and the reduced rates of 9% and 5%. VAT registration is compulsory where total sales of goods and/or services in Cyprus exceed EUR 15,600 in any period of 12 months.
Other taxes Special defence contribution tax, Immovable property tax, Social insurance contributions, Social Cohesion Fund contributions, Motor vehicle tax, Import and excise duties, Immovable property transfer fees
Government fee Yes, but exemptions apply
Stamp duty Yes

Accounts

Requirement to file accountsYes
Publicly accessible accountsYes
Audit requiredYes
Requirement to file Annual ReturnYes
Publicly accessible Annual ReturnYes
Requirement to prepare accounts Yes
Double tax treaties network 61
OECD member No

International law relations

Party to the Hague Convention (Apostille)Yes
Legal systembased on English common law, with civil law modifications
Double tax treaties network61
OECD memberNo
Offshore/onshore status according to the RF lawsYes

Tax treaties

Tax treaties entered Armenia, Austria, Bahrain, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Guernsey, Greece, Hungary, Iceland, India, Iran, Ireland, Italy, Jersey, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Malta, Mauritius, Moldova, Montenegro, Norway, Poland, Portugal, Qatar, Romania, Russia, San Marino, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, USA
United Kingdom
Call us:
General
+44 207 822 8592+44 207 822 8594
French speaking customers:
+44 207 822 8595
Our address:
8-12 New Bridge Street, London,
EC4V 6AL, United Kingdom
Have a question?
Contact our team
client relationship manager-Valery
Ms. Valery F
Corporate expert consultant
Languages: English
+44 207 822 8592+44 207 822 8594 info@infinity-group.sc Skype Request a callback
client relationship manager-Chanelle
Ms. Chanelle F
Corporate consultant
Languages: French
+44 207 822 8595 info@infinity-group.sc Request a callback
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