How to setup a Cyprus company

The information below is a small guide to help you understand what need to be done in order to register a company in Cyprus and what will be the benefits.

If you wish to go ahead and apply to register a Cyprus Company please download and complete our company incorporation questionnaire.

It is very easy to setup a company in Cyprus. It is very similar to the UK Limited company.

First one needs to apply to the Registrar of Companies so as to secure approval of the name of the company.

Whilst waiting for the name to be approved our associates will Draft the Memorandum and Articles of Association of the proposed Company.

When the name of the Company is approved we will submit to the registrar of Companies the following.

  1. Memorandum and Articles of Association
  2. The Directors and Shareholders of the company
  3. The company’s registered office address
Required Information:

1. The Name or names of the Company to apply for approval.

If you already own a company abroad or have an international trademark and want to use it we can try and register with a similar name a Cypriot Company with Cyprus at the end (EXAMPLE (Cyprus) Limited).

However, we will require appropriate documents to prove to the Registrar the existence of such trademark or existing registered name.

Also, a letter in English or Greek by the owners of the trademark stating that they have no objection for a company to be incorporated in Cyprus with the above name.

 

2. For the Memorandum and Articles of Association we will require: 

a)  A brief description of the main activities of the company and the estimated volume of sales per annum.

b)  Names addresses email and profession of the shareholders together with a copy of their Passports, Bank References, proof of permanent address, and a brief description of themselves.

c)  The Share Capital of the Company could be from €1000 to any amount depending on the basic needs of the company.

 

3. For the directors and secretary, we will need the same information as in the case of the shareholders.

One director though, is enough. However, for purposes of tax residency the rule of thumb is the majority of the directors must be in Cyprus. This is an effective way to show that the management and control of the company takes place in Cyprus.

The secretary is usually a local person or a local company. We can assist in providing one for you through our associates.

For the registered office address we help and provide an office address for you in Cyprus through our associates.

After the incorporation of the company we can apply to secure:

a)  VAT registration number.

b)  Income Tax code number.

c)  Open a bank account with a local bank.

For the latter your presence may be desirable. To open an account in a Bank for which we are introducers please contact us to send you an updated list.

Why Register a Cyprus Company?

If your profit justifies a company then surely the savings on taxes and benefits provided in Cyprus will more than cover any initial costs and the audit expenses.

A Cyprus limited company is taxed on 12,5% on all its profits. For Cypriot tax residents and domiciled persons, the company must also provide dividend distribution for at least 70% of the profits of any year within a period of two years, currently at 17%. This is compulsory but you can choose to pay the dividend tax and not distribute the dividend. Tax on dividends is called Special Defense Contribution and the same term is used for the tax on interest received.

You can declare a salary on your company. Declaring a salary on your company also means that it will be deducted from the expenses, you will be allowed the social insurance benefits (in the future you can receive your pension from Cyprus together with your other pensions received in your home country), sick leave benefit, unemployment benefit, subsidized programs for employers to hire employees who are students, people, etc.

Plus, the first 19,500 euros of salary income in Cyprus is tax free!

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Epaminondou & Co Audit Services Limited Accountants, Auditors, Tax Advisory.
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