How to Start a Company in Cyprus: A Complete Guide

How to Start a Company in Cyprus: A Complete Guide

Cyprus has grown into one of Europe’s most attractive destinations for entrepreneurs and investors. With its strategic location at the crossroads of Europe, Asia, and Africa, favorable tax regime, and EU membership, Cyprus offers great opportunities for business growth. Whether you’re looking to expand internationally or start fresh, here’s what you need to know about setting up a company in Cyprus.

Why Start a Business in Cyprus?

  • Low corporate tax – 12.5% corporate tax, one of the lowest in the EU.
  • EU member state – Access to the European single market.
  • Double taxation treaties – Agreements with over 60 countries.
  • Skilled workforce – English widely spoken, highly educated population.
  • Strategic location – Ideal for trade between Europe, the Middle East, and Africa.
  • Ease of incorporation – Straightforward registration process.

Step 1: Choose the Type of Company

The most common legal structure for foreign investors is a Private Limited Liability Company (Ltd). Other options include:

  • Public Limited Company
  • Partnership (General or Limited)
  • Sole Proprietorship
  • Branch of a foreign company

Step 2: Pick a Company Name

  • The company name must be unique and approved by the Cyprus Registrar of Companies.
  • It should not be misleading or identical to an existing business.

Step 3: Draft the Company Documents

You’ll need to prepare and submit:

  • Memorandum and Articles of Association (M&A) – Defines company activities and internal rules.
  • Details of directors, shareholders, and secretary (a Cyprus resident secretary is recommended).
  • Registered office address in Cyprus – Required for all companies.

Step 4: Register with the Registrar of Companies

Once documents are submitted and approved:

  • The company is officially incorporated.
  • You’ll receive a Certificate of Incorporation and related certificates (directors, shareholders, registered office).

Step 5: Register for Tax & VAT

  • Obtain a Tax Identification Code (TIC) from the Cyprus Tax Department.
  • VAT registration is mandatory if annual turnover exceeds €15,600.

Step 6: Open a Corporate Bank Account

Most banks in Cyprus require:

  • Incorporation documents.
  • Passport copies of directors and shareholders.
  • Proof of business activities.

Step 7: Obtain Licenses (If Needed)

Depending on your business activity (finance, tourism, real estate, etc.), additional licenses or permits may be required.

Step 8: Hire Staff & Register for Social Insurance

If employing workers in Cyprus, companies must:

  • Register with the Social Insurance Department.
  • Contribute to employee social insurance and other statutory funds.

Cost & Timeline

  • Incorporation costs: usually €1,500 – €3,000 depending on the service provider.
  • Registration time: about 7–14 working days.

Final Thoughts

Cyprus is an excellent choice for entrepreneurs looking for a business-friendly environment with EU advantages and low taxation. Whether you’re in tech, finance, trading, or services, Cyprus offers a strong platform to expand internationally.

Working with a local lawyer or business setup consultant is highly recommended, as they can handle documentation, compliance, and legal requirements smoothly.