Company registration in Cyprus

Prerequisites for Company Registration in Cyprus

Cyprus presents a conducive business environment, adaptable corporate framework, and transparent regulatory system. The registration of a Limited Liability Company (Ltd) in Cyprus is governed by the following criteria:

• Director
  There are no residency prerequisites; a national of any country (excluding those from sanctioned territories or individuals) can assume the director’s role. The board must include at least one director, with a minimum age requirement of 18. For tax residency purposes, the company Director should be domiciled in Cyprus.
• Shareholder
  Similarly, there are no residency stipulations for shareholders; any individual from any country (excluding those on sanctions lists) can become a shareholder. The company must have a minimum of one shareholder, who must be at least 18 years of age.
• Address
  Your company is required to have a registered address in Cyprus.
• Name
  The chosen name for your company must be unique. The abbreviations used in the name will vary based on the type of company: ‘Limited’ or ‘LTD’ for private limited liability companies, ‘LP’ for limited partnerships, whereas general partnerships do not utilize any abbreviation.
• Authorized Capital
  There is no mandatory requirement for the payment of authorized capital. The nominal value of one share can start from 1 Euro.
• Local Account
  The opening of an account with a local bank is not a prerequisite, providing additional flexibility in funds management.
• Registration Agent and Company Secretary
  While a registered agent isn’t required in Cyprus, the appointment of a local company secretary is a legal necessity.
• Reporting
  All companies are obligated to prepare and submit their reports within the prescribed timeframe.

Electing to register a company in Cyprus signifies a choice of liberty and adaptability for your business. Embark on establishing your global footprint today with our expert guidance.

Tax Regime in Cyprus

Why confine your business within borders when you can operate and prosper on a global scale? Cyprus presents an array of remarkable opportunities for international expansion, reducing your tax obligations, and facilitating a transparent and convenient business process.

Cyprus operates on a worldwide taxation principle, making it highly attractive to resident businesses of all sizes. Your profits are taxed on a global income basis, irrespective of service location, business counterparts, or company structure.

The country’s modest income tax rate, standing at a mere 12.5%, is worth highlighting. This is among the lowest in Europe, enabling you to retain a substantial portion of your profits.

Intend to distribute your success amongst shareholders? Excellent! Cyprus imposes no withholding tax on dividend payouts. More dividends for your investors translates to more investments for your business.

As for Value Added Tax (VAT)? In Cyprus, it’s set at 19%, but for specific categories of goods and services, discounted rates of 9%, 5%, or even zero are applicable. This unfolds vast opportunities for diverse business sectors.

Don’t miss your chance to broaden your global reach and streamline your tax obligations. Cyprus is the perfect environment for your business to flourish and thrive.

Financial Reporting in Cyprus

The cornerstone of a successful business is responsibility. Operating a company in Cyprus brings with it certain obligations that significantly impact your success and the robustness of your enterprise. Rest assured, we’re here to assist you through this process.

Cyprus law mandates that every company, without exception, submit audited accounts. The annual reporting period spans 12 months and aligns with the calendar year, commencing on January 1 and concluding on December 31. However, in your company’s inaugural year, the reporting period may be extended to 18 months. If your company is registered in July, the reporting period will span from the registration date to December 31 of the subsequent year.

Reporting is not solely limited to tax authorities but also extends to the Registry. To evade penalties, every company must submit the HE32 form to the Registry.

Income tax should be remitted by July 31 of the year following the reporting year. It’s crucial to bear in mind that in order to maintain your business in good standing, all companies are required to pay a Levy fee of 350 euros by June 30 each year.

Please note that if the Levy fee is remitted post-June 30, penalties will be imposed. The later the payment, the higher the penalty.

Your business warrants your attention and diligence. Don’t allow fines and penalties to impede your growth and prosperity. A responsible approach cultivates a culture of reliability and stability that reaps rewards in the form of a thriving and prosperous business. Remember your responsibilities, and your business will reciprocate with gratitude.