Holding Company
Advantages of Cyprus Company Formation
- Excellent reputation of the EU jurisdiction
- Fast and easy company formation process
- Low Corporate Profit Tax Rate 15%
- Double Tax Treaties with over 50 countries
- Ideal solution for the EU holding company
- Primary financial hub on intersection of Europe, Africa and Asia
Privacy Score
This score demonstrates how much privacy can be maintained by the company and the rate of disclosure of the corporate information for open public scrutiny. The higher the rate, the more privacy the company can enjoy. All rates are based on the open sources and subjective view of Astra Trust.
21
0
100
Tax Haven Score
This score demonstrates the tax burden applicable to the company and the jurisdiction as a whole. The higher the score, the lower are tax rates, and the easier is regulation. All scores are based on the open sources and subjective view of Astra Trust.
35
0
100
Reputation
This score demonstrates the reputation of the company and jurisdiction in the financial and business circles. The higher the score, the more favourable is the treatment by financial institutions, authorities, and counterparties. All scores are based on the open sources and subjective view of Astra Trust.
Excellent
Find out more about Cyprus
Cyprus is an independent island nation located in the eastern Mediterranean Sea. The country has been a member of the European Union since 2004. This, together with a favourable tax regime and a developed network of double tax treaties, has made Cyprus one of the top destinations for foreign investors.
Cyprus is a stable presidential republic with long-standing democratic traditions and English common law regulating business and commerce. Although there is a territorial dispute in the north, where Cyprus jurisdiction is not recognised, the country is very successful in attracting foreign investment.
A robust financial sector coupled with a stable political climate makes Cyprus an ideal place to establish international businesses. Setting up a company in Cyprus can be a perfect choice to stabilise and grow your business, as well as preserve your assets.
According to the Cyprus Companies Law (Cap 113), it is possible to establish a company in Cyprus as follows:
- Private Limited Company;
- Public Limited Company;
- Limited Partnership; and
- Branch of an Overseas Company.
Why Set Up a Cyprus Company?
Cyprus is a renowned, low-tax jurisdiction with an excellent reputation and numerous advantages. These include the sound reputation of being an EU member state and low taxes. A Cyprus limited company is ideal as a holding European company due to its zero percent withholding tax rate.
Although the Cyprus business registry information is publicly available, it is fairly easy to set up a privacy arrangement through nominees or a trust.
Fast and easy EU company formation
The formation of Cyprus limited company only takes a few days and has a relatively simple incorporation process. Moreover, the level of corporate service in Cyprus is high in comparison to some other EU jurisdictions. With Astra Trust, it is possible to register a company in Cyprus online without having to be present in person and as quickly as just 1-2 business days.
A Cyprus company search can be ordered as a separate service if more information about a company is required. This may be necessary to substantiate the company’s status and details to the business partners. It is also useful when you want to verify the Cyprus company of your counterparty before an important transaction.
Primary European Financial Centre
Another advantage is that a Cyprus company formation with bank account is much faster and simpler due to the island’s EU member status. It is possible to open a bank account with both local and international banks in the European Union. Cyprus banks offer a high standard of service with online banking and debit card issuance at all times. More information about opening a Cyprus bank account can be found on our website or from your personal manager at Astra Trust.
A further significant advantage of Cyprus company formation is the possibility of easily obtaining a European Union VAT tax number. Cyprus registration of VAT is much quicker and more straightforward than in other European countries.
A Cyprus Company Is The Best Option For The Following Business Activities:
International Trade
Consulting Services
Asset Protection
Taxation of a Cyprus company
| Currency | Euro (EUR) |
| Corporate Income Tax | 15% |
| Withholding Tax | 0/5/15% |
| Capital Gains Tax | 0/20% |
| Inheritance Tax | 0% |
| VAT | 19% |
| Exchange Controls | No |
Taxation in Cyprus
A favourable tax regime and a comprehensive network of double tax treaties are the main benefits of incorporating in Cyprus.
Low-tax jurisdiction
The Cyprus company tax rate is one of the lowest in the EU. At 15%, the corporate tax rate in Cyprus is considered the third lowest in the EU.
To take advantage of the low tax benefits, a company needs to have its tax residency in Cyprus. To this end, the majority of the board or the sole director of a Cyprus company must also be a resident in Cyprus. Usually, this can be achieved by employing the services of a local Cypriot director.
On the contrary, a Cyprus offshore company whose principal management is based abroad is deemed to be non-resident. In such a case, the Cyprus non-resident company pays its taxes in the location of the directors and is exempted from Cyprus tax.
Participation exemption and a vast network of double tax treaties are among the benefits of registering a company in Cyprus.
Wide range of DDT agreements
At present, Cyprus has around 60 double tax treaties signed with other countries, such as the US, China, South Africa, Singapore, Russia, India and the UK.
One good reason to incorporate Cyprus company as a group holding is that the dividends received from subsidiaries are not subject to corporate tax in Cyprus. This applies to both an overseas subsidiary or another Cyprus resident company, subject to certain requirements being met. There is also no withholding tax on interest and dividends paid to foreign shareholders of a Cyprus company.
The main currency in Cyprus is the euro, and there are no exchange control restrictions. Furthermore, Cyprus is a member of the Single Euro Payments Area (SEPA), where it is possible to transfer money within just two working days.
Corporate Legislation in Cyprus
The legislation of Cyprus is based on English common law and equity principles.
The court of final appeal is the Supreme Court of Cyprus.
Cyprus company incorporation is regulated by the Cyprus Companies Law (Cap 113). On account of British influence, company law in Cyprus is largely based on the English Companies Act 1948.
The transformation after joining the EU
After joining the EU in 2004, the Cyprus international business company was abolished. Furthermore, the country did away with its 0% tax offshore jurisdiction and became a reputable member of the European Union’s single market, complying with all modern requirements. After switching to the onshore tax system, the IBC legal form was replaced by the classic limited liability company.
The Cyprus Department of Registrar of Companies and Official Receiver maintains the register of companies in Cyprus. Information about directors and shareholders held in the register is open to the public. Information on the legal status of companies, their registered office, and secretary is also recorded in the registrar of companies in Cyprus, which is freely accessible to the public.
The Following Laws Regulate Cyprus Companies And The Financial Sector:
Process of Cyprus company registration
Stage 1
Contact us for more information and quotes. We answer within three hours!
Stage 2
Fill in a form, provide us with the required documents and make a payment.
Stage 3
Receive the scanned incorporation documents within two days, and hard copies by courier in up to seven days.
Required Documents To Incorporate In Cyprus
To incorporate a Cyprus company the following KYC documents are required:
- Certified copy of proof of ID for all directors, shareholders and beneficial owners
- Certified proof of address for all directors, shareholders and beneficial owners
- CV of the Beneficial Owner
- Reference letter from a banking institution, notary, attorney, or auditor
- KYC form provided by your personal manager in Astra Trust
For more information click below to receive certification instructions and requirements.
Documents And Services You Receive After Cyprus Company Formation
The Costs of Company Incorporation Include Services as Follows:
- Company name search in the Cyprus Register of Companies for availability
- Revision of KYC and CDD documents
- Payment of Government Fees
- Necessary filings to the Cyprus Registrar of Companies
- Drafting of activation corporate documents upon incorporation of the Cyprus company
- Cyprus Registered office services for 1 year
- Cyprus Registered agent services for 1 year
- Compliance Fees
- Full administrative support 24/7 from your personal manager in Astra Trust
Cyprus Company Documents Received After After Setting Up a Limited Company in Cyprus:
- Certificate of Incorporation issued by the Cyprus Registrar of Companies
- Memorandum of Association stamped by the Cyprus Registrar of Companies
- Articles of Association stamped by Cyprus Registrar of Companies
- Certificate of Registered Office
- Certificate of Directors
- Corporate Register;
- Written Resolution Adopted by the Sole Director of Shares Issuing;
- Share Certificate;
- Consent Letter of Director;
- Consent Letter of Secretary;
- Resolution of Director of Issuing the Power of Attorney (optionally);
- Power of Attorney for Company administration under Apostille (optionally);
- Power of Attorney for Banks under Apostille (optionally);
- Resolution of Subscriber;
- First Minutes.
Need More Help To Setup Your Offshore Company in Cyprus?
Just get in touch with us. We typically respond within 2 hours
Company Name In Cyprus
Under the Cyprus Companies Law (Cap 113), the name of a Cyprus limited company shall end with the following word or abbreviation:
- The word “Limited“; and
- The abbreviation “Ltd“.
The proposed company name shall not be similar to that of a pre-existing company. The company shall not have a name that can be classified as undesirable by the registrar of companies in Cyprus.
Board Of Directors And Shareholders Of A Cyprus Company
According to Cyprus company law, there is no limitation on the number of directors of a limited company. Directors can be individuals or legal persons. There should be a minimum of one director, of any nationality and residency. However, the director must reside in Cyprus in order for the company to be tax resident in Cyprus.
Shareholders of the Cyprus company can be of any nationality and residency. Shareholders can be individuals or legal entities.
Nominee services are allowed in Cyprus. Astra Trust can provide nominee services and assist with all corporate matters to ensure that your Cyprus company complies with all tax and legal requirements to carry out business in Cyprus.
Share Capital of a Cyprus Company And Types of Companies
The majority of offshore companies incorporated in Cyprus are companies limited by shares. There is no minimum requirement for the issued and paid-up share capital. In practice, the amount of most share capital is usually EUR 1,000.
The number of shares issued to shareholders can be any amount, as it is stipulated in the Memorandum of Association of the Cyprus company.
By share capital, companies in Cyprus can be formed as follows:
- company limited by shares; and
- company limited by guarantee.
The authorised share capital can be both par value and no par value.
A Cyprus company may issue different classes of shares.
Bearer shares are prohibited from being issued in Cyprus.
Privacy of a Cyprus Company
The Cyprus company register is open and freely accessible for public inspection. This essentially means that anyone can access company incorporation details, information on directors, shareholders, all annual returns and changes in the companies.
Privacy can be ensured through nominee services, which are widely offered in Cyprus. Beneficial ownership privacy can be achieved by setting up an offshore trust or foundation. If you would like to know more about how to register a business in Cyprus properly, contact the Astra Trust team to receive more detailed information.
Economic Substance Requirements In Cyprus
Since a company that is resident in Cyprus is subject to tax, there are no substance requirements in the country.
However, the validity of different tax planning and business structures can depend on the level of actual business activity in Cyprus. This can apply to multinational companies in Cyprus, as well as to tax structures that can be challenged in the jurisdiction of the beneficial owner’s residence.
For these purposes, Astra Trust provides services for the establishment of substance in Cyprus, including renting offices and hiring employees for Cyprus companies.
Reporting requirements in Cyprus
According to the Cyprus Companies Law (Cap 113), each company shall prepare and file financial statements that give a true and fair view of the company’s financial position, based on International Financial Reporting Standards (IFRS).
The accounting period ends in Cyprus on the 31st of December. However, the directors of a Cyprus company can adopt a different accounting period.
The Cyprus Companies Law also requires all financial statements of Cyprus companies to be audited by an independent auditor. The law makes no exception for small and dormant companies.
Such an audit shall be conducted in accordance with the International Standards on Auditing.
Key Features of Cyprus company
General Information
- Jurisdiction – Independent nation and the EU member state
- Entity Type – Limited Company
- Corporate Tax – 15%
- Currency – EUR
- Currency Exchange Control – No
- Legal framework – Common law
- Recognition of Trust – Recognised
- Court of Final Appeal – The Supreme Court of Cyprus.
Business Activity Restrictions
- Business Activity Restrictions – No. Subject to standard licensed types of activities
- Economic Substance Requirements – Not applicable
- Prohibition of business within Cyprus – Not applicable
Requirements to Directors
- Register of Directors – Opened to the public
- Minimum Number of Directors – 1
- Corporate Director – Available
- Local Director – Not required
- Nominee Director – Available
Requirements to Secretary
- Secretary – Required
- Local Secretary – Required
Requirements to Shareholders
- Register of Shareholders – Opened to public
- Minimum Number of Shareholders – 1
- Corporate Shareholder – Available
- Annual General Meeting – Required
- Location of Meetings – Anywhere in the world
- Nominee Shareholder – Available
Share capital
- Minimum Authorised Share Capital – EUR 1
- Standard Authorised Share Capital – EUR 1000
- Minimum Issued Share Capital – EUR 1
- Currency of Share Capital – EUR or any other
Reporting Requirements
- Preparation of Accounts – Required on an annual basis
- Filing of Annual Return – Required on an annual basis
- Publicity of Annual Return – Open to the public
- Audited Accounts – Required
Other features
- Redomiciliation to/from Jurisdiction – Permitted
- Shelf Companies – Available
Frequently Asked Questions
What are the benefits of Cyprus company formation?
The benefits of Cyprus company formation include a favourable tax regime, access to the EU market, political stability, and a straightforward regulatory environment. Additionally, Cyprus offers a robust legal framework for international business operations.
What are the costs associated with registration of Cyprus company?
The costs for Cyprus company registration vary based on the services required, including registration fees, legal fees, and ongoing compliance costs. A detailed quote can be provided by Astra Trust upon request.
What are the tax implications of Cyprus company formation?
Cyprus has one of the lowest corporate tax rates in the EU at 12.5%. Additionally, there are various tax incentives available for certain types of businesses, making it an attractive location for company formation.
How long does the Cyprus company formation process take?
The Cyprus company formation process typically takes between 5 to 10 working days, provided all necessary documents are submitted correctly and there are no complications.
Can foreign individuals establish a company in Cyprus?
Yes, foreign individuals can establish a company in Cyprus without any restrictions. Cyprus encourages foreign investment and offers a welcoming environment for international entrepreneurs.
Do I need a local representative for Cyprus company formation?
Yes, it is mandatory to have a local registered office and a local representative who is a resident of Cyprus as part of the Cyprus company incorporation process.
What documents are required for Cyprus company registration?
Required documents for Cyprus company registration include a copy of the passport or ID of the shareholders and directors, proof of address, the company’s Memorandum and Articles of Association, and details of the company’s registered office provided by Astra Trust.
What is the minimum capital requirement for Cyprus company formation?
There is no minimum capital requirement for a Private Limited Company in Cyprus. However, it is advisable to have an initial capital that reflects the nature of the business and its operational needs.
What is the role of a company secretary in Cyprus?
A company secretary in Cyprus is responsible for ensuring that the company complies with statutory requirements, maintains proper records, and manages communications with the Registrar of Companies.
What types of companies can be formed in Cyprus?
The most common types of companies that can be formed in Cyprus are Private Limited Companies (Ltd), Public Limited Companies (PLC), and Branch Offices. Each type has its own regulatory requirements and implications.
