Question 1

What are the main advantages of registering a company in Cyprus?

Accepted Answer

Cyprus offers numerous benefits including a strategic location at the crossroads of Europe, Asia, and Africa, EU membership providing access to the European Single Market, a favorable tax regime with one of the lowest corporate tax rates in the EU (12.5%), an extensive network of double tax treaties, strong legal framework based on English Common Law, and highly skilled professionals in accounting, legal, and financial services.

Question 2

What documents do I need to provide for company registration?

Accepted Answer

You'll need to provide passport copies of all directors and shareholders, proof of address for all directors and shareholders (utility bill or bank statement less than 3 months old), a brief description of business activities, proposed company name options, and details about the company's share structure. Our team will guide you through the document collection process and help ensure everything is properly prepared.

Question 3

How long is the company registration process?

Accepted Answer

The standard company registration process takes approximately 5-7 working days once all required documents are properly submitted. With our Premium package's priority processing, this can be expedited to 2-3 working days. The entire process from initial consultation to receiving your company certificate typically takes 2-3 weeks, depending on how quickly you can provide the necessary documentation.

Question 4

Can I register a company without visiting Cyprus?

Accepted Answer

Yes, you can register a Cyprus company without physically visiting the country. Our service allows for complete remote registration. All necessary documents can be signed electronically or notarized in your country of residence and sent to us. We handle all local procedures and can arrange virtual meetings with banks and other service providers when necessary.

Question 5

How do I perform a Cyprus business registry search?

Accepted Answer

The Cyprus Department of Registrar of Companies provides an online search portal at https://efiling.drcor.mcit.gov.cy where you can check company status and details. Our team can also conduct these searches on your behalf to verify company name availability and compliance status. This is an essential first step to ensure your desired company name is available before proceeding with registration.

Question 6

What are the detailed costs of Cyprus company registration?

Accepted Answer

Cyprus business setup costs include government fees (€100-200), name approval (€20-40), certificate issuance (€20 per certificate), and professional service fees. Our transparent pricing packages start from €599 and include all essential services for successful registration with the Department of Registrar of Companies. For complex business structures, additional fees may apply.

Question 7

Can I register a Cyprus offshore company online?

Accepted Answer

Yes, our platform enables complete Cyprus offshore company formation online. You can submit all necessary documents electronically and manage the entire process remotely, with our team handling all local procedures with the Cyprus Business Registry. This remote process is fully compliant with all regulatory requirements.

Question 8

How do I set up a Cyprus limited company or LLC?

Accepted Answer

Setting up a Cyprus limited company involves checking name availability with the Cyprus Business Registry, preparing incorporation documents (Memorandum and Articles of Association), submitting them to the Department of Registrar of Companies, securing a registered address, appointing directors and secretary, and completing tax registration. Our service handles all these steps for you to ensure a smooth and compliant formation process.

Question 9

What is the corporate tax rate in Cyprus?

Accepted Answer

The standard corporate tax rate in Cyprus is 12.5%, which is one of the lowest in the European Union. This applies to all Cyprus tax-resident companies' worldwide income. Certain types of income, such as dividends, profits from foreign permanent establishments, and profit from the sale of securities, are exempt from corporate tax.

Question 10

How does the Cyprus tax residency work for companies?

Accepted Answer

A company is considered tax resident in Cyprus if its management and control are exercised in Cyprus. This typically requires that the majority of the directors are Cyprus residents and that board meetings are held in Cyprus. Tax resident companies are taxed on their worldwide income, while non-resident companies are only taxed on income derived from Cyprus sources.

Question 11

What are the VAT rates in Cyprus?

Accepted Answer

The standard VAT rate in Cyprus is 19%. There are also reduced rates: 9% (applicable to accommodation, restaurant services, and certain transport services) and 5% (applicable to certain essential goods and services like food, pharmaceuticals, books, and renovation of private dwellings). Some goods and services are exempt from VAT or subject to 0% VAT.

Question 12

How does dividend taxation work in Cyprus?

Accepted Answer

Dividend income received by a Cyprus company from another Cyprus company is exempt from all taxes. Dividend income received from foreign companies is also exempt from corporate tax but may be subject to the Special Contribution for Defence (SDC) at the rate of 17% if specific conditions are not met. Dividends paid to non-resident shareholders are not subject to withholding tax in Cyprus.

Question 13

What tax obligations must be registered after company formation?

Accepted Answer

After registering with the Cyprus Business Registry, your company must register with the Tax Department for Corporate Tax and VAT (if applicable). Companies with an annual turnover exceeding €15,600 must register for VAT. You'll also need to register as an employer if hiring staff. Our service includes guidance through these tax registration processes to ensure full compliance.

Question 14

Can a foreigner open a business bank account in Cyprus?

Accepted Answer

Yes, foreigners can open business bank accounts in Cyprus. However, banks have strict due diligence procedures and typically require a physical presence to open the account. Our banking assistance service can help facilitate this process, preparing all necessary documentation and arranging meetings with bank representatives. In some cases, we can arrange for remote account opening, though this depends on the specific bank's policies.

Question 15

What documents are required to open a business bank account?

Accepted Answer

Typically, you'll need to provide the company's certificate of incorporation, memorandum and articles of association, certificate of directors and secretary, certificate of shareholders, certificate of registered office, tax registration documents, proof of identity and residence for all directors and significant shareholders (usually those holding 10% or more), and a detailed business plan explaining the company's activities and source of funds.

Question 16

How long does it take to open a business bank account?

Accepted Answer

The bank account opening process in Cyprus typically takes 2-4 weeks from application to receiving account details, depending on the bank's current workload and how quickly you can provide all required documentation. Some banks may take longer if additional due diligence is required. With our banking assistance service, we can help expedite the process by ensuring all documentation is properly prepared in advance.

Question 17

Do I need to deposit a minimum amount to open a business account?

Accepted Answer

Most banks in Cyprus require a minimum initial deposit to open a business account, typically ranging from €2,000 to €5,000. Some banks may also require that you maintain a minimum balance to avoid service fees. The exact requirements vary by bank and the type of account you're opening. Our team can advise you on the specific requirements of different banking institutions based on your business needs.

Question 18

Is a local bank account required for Cyprus Business Registry?

Accepted Answer

While not strictly required by the Cyprus Business Registry for company formation, having a local Cyprus bank account is highly recommended for operational purposes and demonstrating substance. Some corporate actions, such as capital increases or share transfers, may require documentation of banking transactions. Our banking assistance service helps you navigate the requirements of both the registry and banking institutions.

Question 19

What are the annual compliance requirements for Cyprus companies?

Accepted Answer

Cyprus companies must prepare and submit annual financial statements, file an annual tax return, submit an annual return to the Registrar of Companies, hold an annual general meeting of shareholders, pay the annual levy of €350, maintain a registered office in Cyprus, and keep statutory registers up to date. Companies registered for VAT must also submit periodic VAT returns, typically quarterly.

Question 20

Are Cyprus companies required to have an audit?

Accepted Answer

Yes, all Cyprus companies are required to have their financial statements audited by a licensed auditor regardless of their size or turnover. The audited financial statements must be prepared according to International Financial Reporting Standards (IFRS) and submitted along with the annual tax return. Small companies may qualify for exemptions from certain IFRS disclosure requirements but are still subject to the audit requirement.

Question 21

What happens if a company fails to comply with annual requirements?

Accepted Answer

Non-compliance with annual filing and payment obligations can result in penalties, including fines for late submission of tax returns or financial statements, interest on overdue tax payments, and potential removal from the company registry for persistent non-compliance. The Registrar of Companies can strike off companies that fail to submit annual returns for an extended period. Our corporate maintenance service ensures your company remains compliant with all statutory requirements.

Question 22

What are the requirements for maintaining substance in Cyprus?

Accepted Answer

To establish proper substance in Cyprus and avoid challenges from tax authorities, a company should have physical presence in Cyprus (office space), employ local staff, have local directors with appropriate qualifications who actively participate in decision-making, hold regular board meetings in Cyprus with detailed minutes, have Cyprus bank accounts, and maintain all corporate records in Cyprus. The level of substance required depends on the company's activities and size.

Question 23

What ongoing filings are required with the Cyprus Business Registry?

Accepted Answer

Companies must file an Annual Return (Form HE32) with the Cyprus Business Registry each year, within 42 days after the anniversary of incorporation. Any changes to directors, shareholders, registered office, or company secretary must be promptly reported. The Memorandum and Articles of Association must be updated for any structural changes. Our compliance service ensures all registry requirements are met on time.

Frequently Asked Questions

Everything you need to know about registering and operating your business in Cyprus

Registration FAQ

What are the main advantages of registering a company in Cyprus?

What documents do I need to provide for company registration?

How long is the company registration process?

Can I register a company without visiting Cyprus?

How do I perform a Cyprus business registry search?

What are the detailed costs of Cyprus company registration?

Can I register a Cyprus offshore company online?

How do I set up a Cyprus limited company or LLC?

General Questions

Additional Resources

Cyprus Business Guide

Business Webinars

Company Registration Forms

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