CYPRUS COMPANY FORMATION

Corporate Tax 12,5%

Tax exemptions for Owners

Low maintenance fees

Registration in 8 days

The formation of Cyprus company procedure is fast and easy if you have the proper professional guidance. Start operating in a very short time under Cyprus regime and benefit from the significant tax advantages of Cyprus corporate tax.  In this page you will find everything you need to know related to Cyprus company formation.

  • Register your company without visiting Cyprus
  • Get Cyprus Tax id number and benefit from the low-income tax
  • Operate worldwide with your Cyprus Company
  • Company bank account in 5 days
  • Fast and easy process. No fuss. Sent us the paperwork and we do the rest.

Cyprus Company Types.

  1. Limited Company (LTD)
    no minimum share capital requirement
    number of shareholders can be between one to fifty
    The company must have at least one director and a secretary
    annual accounts must be audited and filled either in Greek or English language
  1. Branch
    foreign company responsible for all liabilities of a Cypriot branch
    branch required to register with Registrar of Companies and CY Tax department
    accounts to be filed annually, in Greek or English
  1. Partnership
    general partnership: between two to twenty members
    limited partnership: at least one partner with unlimited liability
    required to register with Registrar of Companies and Cyprus tax department

Uses of Cyprus Companies.

A Cyprus registered company can be used in various ways supporting the needs of the company’s operations. Cyprus registered companies can have activities related to:

  • Imports/exports
  • Services providers
  • Online shops
  • Tech Start-Ups
  • Finance companies
  • Shipping companies (Merchant Shipping)
  • Property Holdings
  • Investment Companies
  • Holding companies
  • Intellectual Property Holding

Registration Time.

It takes 8 working days to have your company registered in Cyprus.

Day 1 Application to the Registrar of Companies for the company name approval.

Day 3 Name approval for the authorities.
Completion of memorandum and submit online to the Registrar of companies for approval.

Day 7 Issue of company’s official documentation. (Certificates of registration, certificate of board of directors and secretary, certificate of shareholders and office address, Authentication of company memorandum and Articles of association)

Finally, the application to the Tax department for Tax Identification Number is submitted. Also, the application for Bank account opening in Cyprus.

After the registration of the company, it takes approximately 3 to 5 working days to open a bank account.

Registration process.

Yes, you need a registered address in order to setup a company in Cyprus. Our firm has the capacity to help you find an office space, without the need for you to look around.

No, you don’t need to visit Cyprus in order to register your company. Everything can be arranged from your country and we can take care of it. Our experts will communicate and advice you via email or a skype conference and then sent you the paperwork to be signed.

 

There is no minimum requirement of shares capital to start your Cyprus company.

The documentation needed to register your company are:

  • A certified copy of Passport or ID
  • A certified copy or an original utility bill, as a proof of address.
  • A reference letter from a bank institution, lawyer or accountant for the good standing of the beneficial owners.
  • A questionnaire provided from KTC Business Consultants.
  • A recent CV
  • Last year’s tax return

Fees and Obligations.

The annual fee to keep a company active is 350 Euro and is paid to Cyprus company registrar via the online portal or via your services provider.

Annual Reports and Audited financial Statements have to be submitted online to the Cyprus company Registrar department in 28 days after the end of the fiscal year.

Cyprus companies have to convene at least one Directors meeting per year. This meeting is mandatory. The first annual directors meeting of the company has to take place in 18 months after the registration date of the company.

A Cyprus company has to be registered to the Tax department and issue a Tax Identification number within 60 days after the registration date.

The annual Tax return form has to be submitted 15 months following the year end.

The yearly tax has to be paid in three installments on the 31st of July, the 31st of December and the last one on the 30th of June of next year. All Cyprus companies have to calculate and submit their own tax payments within the tax year.

Every Cyprus registered company is obliged to keep accounting records and prepare audited financial statements.

Taxation.

The corporate tax rate is 12.5%

No there are no any extra taxes.

This depend on the paid salary you will receive from your company. If you earn less than €19.500
You have no tax obligation.

1. Cyprus Tax resident, director and employee of the company.
Taxed on worldwide income if is over €19.500

2. Non-Cyprus Tax resident, director and employee of the company.
Taxed only on Cyprus income if is over €19.500

3. Cyprus Tax resident, director, employee and a shareholder of the company.
Taxed on worldwide income if is over €19.500 Dividends are exempted from income tax and Cy withholding tax, but will pay National Health Insurance Scheme on 2.65% from 01/03/2020

4. Non-Cyprus Tax resident, director and shareholder of the company.
Taxed only on Cyprus income if is over €19.500 Dividends are totally exempted from Cyprus.

Banking.

Bank account for a Cyprus company.

Takes approximately 3-5 working days from the day the signed documents from beneficial owners are delivered to the bank.

  • Company certificates (Shareholders certificate, registered office, Incorporation certificate, Directors and secretary certificate)
  • Memorandum and Articles of association
  • Identification documents of the beneficiary person (Id, Passport and proof of permanent address)

Yes, you can open a corporate bank account.

Yes, connected to the company’s bank account.

Yes, but depends on the card type. ie Mastercard, Visa

Yes, if relevant information is provided.

Fees depend from the bank policy. Usually banks charge from €500 – €800 per year. A company is obliged to provide all requested information to the bank such as activities, owners, clients and customers.

Board of Directors.

A Cyprus registered company has to have Director(s) , Shareholder(s) and a Secretary stated.

At least one director has to be tax resident and annual meetings have to be held in Cyprus.

Any person from Cyprus or abroad that has no criminal record.

Employment.

It’s easy to employee staff in Cyprus. Cyprus has one of the most educated labor force in Europe.
Our firm can assist you and advice on the recruiting process.

Yes. In the case of an EU citizen he has to visit Cyprus and obtain the yellow slip permit. If is a third country national (outside of CY/EU) then the application of visa is required and different employment criteria according to the Cyprus Department of Labour.

The minimum wage in Cyprus is 870 Euro gross and after the continuous employment from the same company goes to 924 Euro. The hourly rate varies depending on the job profile starting from 4,55.

The total insurance fee is 20.3%. The fee of 12% is employer’s responsibility and the rest of 8.3% is paid by the employee. Employer’s contributions include the Social Insurance Fee (8.3%), Redundancy Fund (1.2%), HR Development Authority Fund (0.5%) and lastly the Social Cohesion Fund (2%).  Please note that these numbers may change year after year according to the Social Insurance Department.

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