Cyprus – Company Incorporation Guide

Fast, EU-based company setup with 12.5% corporate tax and online filings. Below is a simple, step-by-step outline plus key compliance dates and banking tips.

Snapshot

• Best vehicle: Private company limited by shares (Ltd) – no legal minimum paid-in capital – 100% foreign ownership.
• People: ≥1 director and ≥1 shareholder (max 50). Company secretary required. In a single-member company, the same person may act as director and secretary.
• Registered office: Cyprus address required.

Non-resident notes

• No legal resident-director requirement, but a Cyprus-resident director helps establish management and control for tax residence.
• VAT: threshold €15,600 over any rolling 12 months. If non-established, register from the first taxable supply.
• Banking: local banks have strict AML and substance checks – many non-resident clients start with reputable EMIs.

How to incorporate

1. Name approval: submit 2–3 options. Typical 2–5 working days. Reservation usually held about 6 months. Keep a broad objects clause.
2. Registered office: set a Cyprus address.
3. Appoint people: director(s), secretary, shareholder(s). Decide share capital and record UBOs.
4. Documents: standard Memorandum & Articles.
5. Online filing: file with the Registrar. Fast-track available. Expect about 5–10 working days after complete docs.
6. Tax setup: obtain TIN and online tax accounts.
7. VAT: register near the threshold or immediately if non-established.
8. Payroll: if hiring, register as employer with Social Insurance.

Taxes

• Corporate income tax: 12.5%.
• Payments and returns: provisional tax in two instalments (around July and December). Final settlement the following year. Corporate return typically due about 15 months after year-end.
• IP regime: 80% deduction on qualifying IP under OECD nexus – about 2.5% effective rate on qualifying profits. Capital-nature IP disposals are exempt.

VAT and EU VIES

A Cyprus VAT number appears in EU VIES – no separate VIES registration. For intra-EU B2B, validate the customer’s VAT number, apply zero-rating for goods or reverse charge for services, and file VIES recaps (usually monthly). Intrastat may apply if thresholds are exceeded.

UBO reporting

• Scope: report each natural person owning or controlling >25% or otherwise exercising control. If none, report a Senior Management Official. Listed company holdings are recorded without look-through.
• Deadlines: new entities within 90 days; changes within 45 days; annual confirmation each year between 1 Oct and 31 Dec.
• Fines: from 1 Feb 2025 – €100 initial plus €50 per day, capped at €5,000.

Ongoing compliance

• Annual Return (HE32): file every year – first within 18 months of incorporation – with financials attached.
• Accounts & audit: IFRS annually. Small companies may be eligible for a review engagement – check eligibility.
• Annual levy: abolished from 2024.

Banking & payments

Prepare apostilled company docs, proof of registered office, and KYC for directors and UBOs. If a local bank takes time, consider reputable EMIs to start operations.

Best practices

• Use a professional secretarial and registered office provider.
• Calendar HE32, UBO, tax, and VAT dates.
• Plan board composition and meeting location if you want Cyprus tax residence.
• Track VAT early – non-established businesses register from the first supply.

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