Cyprus is a highly attractive destination for business setup, appealing to both local and international entrepreneurs. With its favorable tax regime, strategic location, and business-friendly legal framework, Cyprus offers an ideal environment for business growth and international expansion.
Below is a comprehensive, step-by-step guide to registering a company in Cyprus, including all legal and accounting requirements.
Step 1: Choose the Type of Company
The most common types of companies in Cyprus are:
- Private Limited Company (LTD) – Ideal for small and medium-sized businesses
- Public Limited Company – Suitable for larger companies with multiple shareholders
- Branch or Subsidiary of a Foreign Company
➡️ Most businesses opt for a Private Limited Company (LTD).
Step 2: Company Name Approval
Before incorporating the company, the proposed name must be approved by the Cyprus Registrar of Companies. The name:
- Must not be identical or too similar to an existing registered name
- Should not be misleading or offensive
- Is usually approved within 3–5 working days
Step 3: Drafting the Memorandum & Articles of Association
A licensed Cyprus lawyer must prepare the Memorandum and Articles of Association, which outline:
- The company’s objectives
- The internal structure and operations
- The liability of shareholders
These documents are then submitted electronically to the Registrar.
Step 4: Company Registration with the Registrar
Once the documentation is approved, the Registrar of Companies issues:
- Certificate of Incorporation
- Certificate of Directors & Secretary
- Certificate of Registered Office
- Certificate of Shareholders
Step 5: Tax Registration & VAT
Following incorporation, the company must register with the Tax Department to obtain a Tax Identification Number (TIN), and register for VAT if:
- Annual turnover exceeds €15,600
- The company provides services or goods within the EU
Step 6: Open a Corporate Bank Account
A Cyprus company is required to have a local bank account. The bank will request:
- Corporate certificates
- IDs and proof of address for directors and shareholders
- Company business plan and structure
Step 7: Accounting & Annual Obligations
By law, all Cyprus companies must:
- Maintain proper accounting records
- Prepare annual audited financial statements
- Submit an Annual Return (HE32) and Corporate Tax Return (TD4)
- Pay Corporate Income Tax (12.5%) on taxable profits
Additional Notes
- The minimum share capital for an LTD company is typically €1
- There are no restrictions on the nationality of shareholders or directors
- Company formation usually takes 7–14 working days, depending on the documentation
How YMC Consulting Can Support You
At YMC Consulting, we provide end-to-end company formation and administration services. From choosing the right structure to managing your tax and accounting obligations, we ensure your business is compliant and set for success in Cyprus.
Contact us today and take the first step toward
launching your business in Cyprus with confidence.
