Why Set Up a Business in Cyprus?
- Cyprus has one of the lowest corporate tax rates across the EU – 12.5%. Moreover, there is no taxation on dividends or capital gains.
- Cyprus has double tax treaties with more than 40 countries, and is thus favourable for a company by precluding double taxation for these countries.
- Cyprus is strategically located at the crossroads of Europe, Asia and Africa, and is also a member of the EU. As a result, it is quite accessible and well-connected in terms of trade and commerce.
- Incorporating and registering a company in Cyprus is simple and hassle-free. There is no restriction on a foreigner acting as a director or a shareholder.
Process of Setting Up a Business in Cyprus
A company in Cyprus can be registered through the following steps.
Reserving the company name at the Registrar of Companies
This involves submission of a standard form for name approval either in person or by mail. It can also be submitted electronically to the Registrar of Companies and Official Receiver.
Preparation of the Memorandum and Articles of Association through a lawyer
A generic template is provided by the Companies Law for the Memorandum and Articles of Association. Preparation of this document is a statutory requirement, along with their sign on the declaration.
Submission of required documents at the Companies Section of the Department of Registrar of Companies and Official Receiver
The following documents, attested by a registered lawyer/advocate in the Republic of Cyprus, are required to be submitted:
- Declaration form (ΗΕ1, a sworn statement of the lawyer and signature from the Registrar of the District Court)
- Form citing the registered office address (HE2)
- Details of the directors and secretary (HE3)
- List of persons who consent to act as directors, in case of a public company (HE5)
- Original Memorandum and Articles of Association
- One Stop Shop application cover for registration of legal entities
Obtaining a Tax Identification Number by registering at the Tax Department
The following documents must be introduced by the company:
- Form 162 for registration as a tax payer and obtaining a Tax Identification number (TIN)
- Form 101 for registration for VAT (done once the company reaches VAT threshold or by voluntary registration)
Registration can be carried out at the Tax Department.