Either the EU Membership, the various Tax Benefits for Companies and Expats or the wonderful climate, Cyprus offers a lot of reasons to establish a Company at. Please refer to our post here for more information.

No, you can sign the Memorandum, Articles of Association and any other document which may be required in wet ink and send us the scanned copies for us to be able to proceed with the incorporation.

No, it is not required for a Cyprus Company to have a bank account, but that is recommended so that the Company can pay its expenses. A Cyprus bank account also strengthens tax residency, but Cyprus Companies can also have bank accounts with banks abroad.

The name of your entity should not be too general or already in used, otherwise the Registrar may not approved. We can provide a free consultation on the name, as this is the first step on the incorporation.

Every Cyprus Company must have its own memorandum and articles of association.

The memorandum contains the basic information of the company such as the company name, registered office, the objects of the company and so on. Care must be taken that the first few object clauses are tailored to the specific circumstances and main business objects and activities of the company (we can assist with such).

The articles specify rules about the governance of the internal management of the company and regulations about the rights of the members (appointment and powers of directors, transfer of shares, etc).

Every Cyprus Company needs to have a registered office in the Republic upon incorporation.

The registered office is the place where writs, summonses, notices, orders and other official documents can be served upon the company. It is at the registered office where the company’s register of members is usually kept. This can be the premises of the entity, or such an address can be provided by us as outlined here.

Every Cyprus Company needs to have a corporate secretary, which is responsible for the filings to the Registrar of Companies amongst others. Such services can be provided by us, as outlined here.

The Cyprus Company shall have at least 1 Director and 1 shareholder upon incorporation. Quorum for Directors meetings will be set at the Memorandum and Articles of the Cyprus Company.

No, the share capital initially will be shown as receivable from shareholder and can be settled when the Company has a bank account or when the shareholder pays any expenses on behalf of the entity.

Usually we incorporate entities with authorized share capital of 5,000 ordinary shares of €1 each, and issue 1,000 ordinary shares of €1 each.

Yes, after incorporation shares out of the authorized share capital of the Company can be issued at a premium.

No, usually we incorporate Cyprus Companies with their share capital in €, however, the capital of the Cyprus Co can also be issued in other currencies such as USD$, GBP£ etc.

As a minimum upon incorporation the entity shall register with the Tax Authorities and obtain a Tax Identification Code (TIC), 60 days after incorporation. The Company will also need to submit its UBO information maximum 30 days after incorporation.

There are other registrations that the entity may need such as VAT (if it will conduct vatable activities, or registration with the Social Insurance Authorities if the Company will have employees on its payroll).

The corporate income tax rate in Cyprus is 12.5%. Known for its attractive tax regime, Cyprus has established itself as a favorable destination for businesses seeking a competitive tax environment within the European Union. The 12.5% corporate tax rate, combined with various tax incentives and exemptions, makes Cyprus an appealing jurisdiction for company incorporation. This moderate tax rate, coupled with the country’s strategic location, robust legal framework, and business-friendly environment, positions Cyprus as an excellent choice for entrepreneurs and companies looking to establish a presence in the European market.

You can see more information on the tax benefits in Cyprus in our Why Cyprus article. 

As from 31/12/2022, every Cyprus Company upon incorporation will be considered a Cyprus Tax Resident, unless the said Company is tax resident in another jurisdiction.

In accordance with current the Income Tax Law, a company is considered to be a tax resident of Cyprus if its management and control is exercised in Cyprus.

The existing corporate tax residency test will continue to apply, so that a company that has its management and control in Cyprus will continue to be considered as a tax resident of Cyprus. It is always recommended to have strong substance in Cyprus in cases of a tax audit from foreign tax authorities (i.e. of the country of tax residency of the CyCos beneficiaries). For more information on substance in Cyprus please click here.