Company Formation in Cyprus

Cyprus Incorporation

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  Capital Setup

  There is no minimum share capital requirement for a Cyprus Ltd, though it is customary to issue at least €1,000 divided into shares. Shares can be in any currency, and contributions can be made in cash or kind. The liability of shareholders is limited to the amount unpaid on their shares.

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  Taxes

  Corporate income tax is 12.5%, and Cyprus offers numerous incentives including an IP Box regime that allows effective tax rates as low as 2.5% on qualifying intellectual property income. Dividend income may be exempt from taxation under certain conditions, and no withholding tax is levied on dividends paid to non-residents. Cyprus also maintains an extensive double-tax treaty network for international tax efficiency.

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  Business Structure Requirements

  The most common company type is the Private Limited Company (Ltd). It requires at least one shareholder and one director, both of whom can be non-residents. A company secretary and a registered office address in Cyprus are mandatory. There are no restrictions on foreign ownership, making it ideal for international entrepreneurs.

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  Ongoing Obligations

  All companies must maintain proper accounting records, file annual financial statements audited by a local licensed auditor, and submit annual returns to the Registrar of Companies. A corporate tax return must be filed electronically each year. Businesses must also register for VAT if turnover exceeds the threshold and maintain a local registered address at all times.