Cyprus is a key European country that attracts investors and entrepreneurs for company setup. Its strategic location enables easier trade with Europe, the Middle East, and Africa. Moreover, the jurisdiction’s business-friendly environment and low corporate tax ensure businesses can grow effortlessly, making Cyprus company formation a viable choice.
Are you looking to start a company in Cyprus? Our guide walks you through the benefits, requirements, and process.
What are the Benefits of Opening a Company in Cyprus for Foreigners?
Incorporating a company in Cyprus has numerous advantages, from low taxes to access to the European market. Here are a few key benefits of setting up a business in Cyprus:
Low Tax Rates
Cyprus’s taxes have undergone major reform, effective from January 1, 2026. It is still among the lowest tax jurisdictions in Europe. However, after the latest reforms, the corporate tax rate has increased from 12.5 percent to 15 percent. Moreover, Cyprus only taxes crypto profits at a flat 8% rate, which can be carried forward for a year.
International Trade
By opening a company in Cyprus, you can take advantage of the jurisdiction’s strategic location and get access to European, African, and the Middle Eastern markets. Moreover, the country also boasts a strong infrastructure, such as transportation, which facilitates international trade.
Access to the European Market
Cyprus became a member of the European Union (EU) in 2004. Thus, you can start a company in Cyprus and enjoy the EU’s single market access. That means you can export goods and render services to any country that is a part of the EU. On top of that, you can also simplify Value Added Tax (VAT) registration with no need to register in other countries.
Double Tax Treaties
Cyprus has over 65 double tax treaties (DTTs). These treaties ensure that a company set up in Cyprus is not taxed twice. By opening a company in Cyprus, you can reduce or eliminate withholding tax (WHT), manage tax residency, or get permanent establishment protection.
IP Box Regime
You can access the IP box regime by registering a company in Cyprus and managing your IP locally. The IP box regime allows for an 80% tax deduction on qualifying profits, calculated by subtracting IP-related expenses from IP-related income. This means only the remaining 20% of your net IP income is taxed, resulting in a significant tax reduction.
Non-Dom Status
Cyprus' Non-Dom (Non-domiciled) status is a tax regime designed to attract high-net-worth individuals, entrepreneurs, and digital nomads by exempting them from taxes on their worldwide passive income. Moreover, if you are a Cyprus tax resident with non-dom status, you are exempt from the Special Defense Contribution (SDC). SDC is a tax levied on passive income, such as interest and dividends.
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What are the Documents Required to Start a Company in Cyprus?
Compiling the right documents is integral to the formation of a Cyprus company. The following is the list of key documents:
- Personal Identification Documents such as Passports
- Translated Copy of Memorandum of Association (in a language other than Greek)
- Translated Copy of Articles of Association (in a language other than Greek)
- Bank Reference Letter
- Statutory Declaration (Form HE1)
- Registered Office Proof (Form HE2)
- Directors and Company Secretary Details (Form HE3)
What is the Process to Start a Company in Cyprus?
Cyprus has a streamlined process for registering a firm. You can start a business in Cyprus by following the steps below:
Step 1: Appoint a Licensed Cyprus Lawyer
Unlike Seychelles or Belize, incorporating a company in Cyprus does not require a registered agent. However, you must appoint a local licensed Cyprus lawyer who will submit the forms on your behalf.
Step 2: Appoint a Company Secretary
Hiring a company secretary (CS) is mandatory to register a company in Cyprus. A CS takes care of all the responsibilities and ensures legal compliance for the firm. Details of the company secretary are to be submitted in the Form HE3.
Step 3: Choose a Business Structure
There are numerous business structures available to start a company in Cyprus. These include a private limited liability company by shares, a limited liability company by guarantee with or without share capital, a variable capital investment company, and so on. Choose the structure that fits your business purpose and vision.
Step 4: Set Up a Company
To begin registration in Cyprus, your lawyer has to submit the request through the registrar’s e-filing system along with the key documents mentioned above. AoA and MoA must be translated by a sworn translator.
Step 5: Obtain Certificate of Incorporation
Once the authorities verify all the details, you can raise a request for a certificate of incorporation. It is a key document that verifies the legality of your firm and is crucial for opening a bank account.
Why Choose Business Setup Worldwide?
The right documentation is integral to starting a company in Cyprus. From a duly filed HE1 form to choosing the right name, Business Setup Worldwide can help you fulfill all the legal requirements. Our legal experts stay in tune with the latest updates and ensure you meet all the compliance requirements. Contact us now to avail of our company formation services.
