Setting up a company in Cyprus
To set up a company in Cyprus from abroad, you get a name approved by the Registrar of Companies, have a Cyprus lawyer prepare and swear the incorporation papers, file them online, then register the new company for tax within 60 days. The usual vehicle for a privately owned business is the private company limited by shares, which needs one shareholder, one director and a company secretary, and has no minimum share capital.
The short version, in order:
- Choose the company type and decide who will be shareholder, director and secretary.
- Get the name approved by the Registrar of Companies.
- Have a lawyer prepare the memorandum, articles and statutory declaration.
- File the incorporation through the Registrar’s e-filing system and pay the fee.
- Register with the Tax Department for a tax number, and for VAT if you cross the threshold.
- File the beneficial owners within 90 days, then open a bank account and register as an employer if you hire.
Each step is covered below, with the official fees and deadlines and the points where non-residents usually need local help.
What changed for Cyprus companies in 2026
The headline change is the tax rate. Under the income tax reform passed as Law 244(I)/2025, companies are taxed at 15% from 1 January 2026, according to the Tax Department’s presentation of the 2026 tax reform. Many guides written before 2026 still quote the old rate of 12.5%, so check the date on anything you read.
The reform also changed other parts of the tax code, including rules on dividends and losses. Those details depend on your structure and your own tax residence, so ask an accountant to apply them to your plan rather than relying on a summary.
Choose the right company type
The Registrar of Companies lists five types of company:
- private limited liability company by shares
- public limited liability company by shares
- limited liability company by guarantee without share capital
- limited liability company by guarantee with a share capital
- variable capital investment company
For a trading business or a holding company owned from abroad, the private company limited by shares is the usual choice. It must have at least one member and no more than fifty, and there is no minimum share capital requirement. A public company needs at least seven members, and one offered for subscription needs a minimum capital of €25,629, so it rarely fits a first company.
Companies limited by guarantee suit non-profit bodies such as associations and foundations. The variable capital investment company is a fund vehicle and comes with its own regulatory route. If your activity is regulated, for example investment services, licensing is a separate process with the financial regulator and should be planned before you incorporate.
Other routes exist too. A foreign company can register a place of business in Cyprus instead of forming a new company, and the Registrar also handles partnerships and business names. An adviser can tell you whether a branch or a subsidiary fits your case better.
What you need before you set up a company in Cyprus
Sort out the people, the address and the paperwork first. These decide how smoothly the rest goes.
The people
- Shareholders: at least one, individual or corporate.
- Directors: a private company needs at least one director, aged 18 or over. A public company needs at least two.
- Secretary: every company must have one secretary, also aged 18 or over. The director may act as secretary only in a private company with one member and one director.
- A Cyprus lawyer: only lawyers licensed by the Cyprus Bar Association can prepare and sign the memorandum, the articles and the statutory declaration, as Invest Cyprus explains.
The Registrar’s rules for directors set an age limit, not a nationality requirement. Where the directors live and take their decisions can still affect the company’s tax position, so discuss with your adviser where board meetings will be held.
The address
The company needs a registered office address, which is notified to the Registrar on form HE2. Founders who do not have premises yet often use an address service at first; the virtual office page lists firms that offer one.
The documents
Your lawyer or provider will run identity and due diligence checks on every shareholder, director and beneficial owner. Expect to provide certified passport copies, proof of address and details of where the money comes from. Corporate shareholders add their own registration documents. Ask early which documents need certification or an apostille in your country, since this is where foreign applications often stall.
Step 1: Get the company name approved
Apply to the Registrar for approval of the name before anything else. The fee is €10 for every proposed name, plus €20 per name for faster processing. You can apply by e-filing, by hand or by post.
Once the name is approved it is reserved for six months, and you must file the incorporation within that period. A name that resembles an existing company’s name may need that company’s consent, and some words need permission from the relevant authority. Proposing two or three names at once saves a round trip.
You should now have: an approved name, reserved for six months.
Step 2: Prepare the memorandum, articles and forms
Your lawyer drafts the memorandum and articles of association. They must be signed in Greek; a certified English translation is only needed if you want a translations file kept with the Registrar. A company can adopt the standard regulations of Table A of the Companies Law instead of fully bespoke articles.
The lawyer also prepares the statutory declaration on form HE1, which must be signed and sworn before the court by the lawyer. Paper filings also include form HE2 for the registered office and form HE3 for the first directors and secretary.
Think about the share structure at this point: how many shares, at what nominal value and in which classes. Changing it later costs another filing.
You should now have: signed constitutional documents and a sworn HE1, ready to file.
Step 3: File the incorporation with the Registrar
The application goes through the Registrar’s e-filing system, or by hand or post. The online fee is €165, or €235 for a company without share capital. An accelerated procedure costs €100 more, and a file of translations adds €160.
The Registrar examines the papers and, if they are in order, registers the company and issues the certificate of incorporation. Invest Cyprus describes registration as generally completed within a few days; the Registrar itself publishes no fixed timetable, so treat any promised number of days as an estimate. Check the Registrar’s published reasons for rejection before filing to avoid a resubmission.
You should now have: a registered company with a registration number and a certificate of incorporation.
A ready-made company instead of a new one
Some lawyers and providers keep pre-approved names, and some hold companies that are already registered and have never traded. Taking over one of these saves the name and incorporation wait, which helps when a contract or a bank application has a date attached. The trade-off is paperwork of a different kind: shares must be transferred, the directors, secretary and registered office changed, and the beneficial owners updated within 45 days. Ask for proof that the company has no trading history, no debts and no filings outstanding before you sign. For most founders without a deadline, a new company is simpler.
Step 4: Register for tax and VAT
Every new company must apply for taxpayer registration with the Tax Department within 60 days of incorporation and obtain a tax identification number.
VAT registration is required once taxable supplies in the last 12 consecutive months exceed €15,600, or when you expect to exceed that amount in the next 30 days. Cyprus applies a standard VAT rate of 19%, with reduced rates of 5% and 9% and a super reduced rate of 3%. Companies that trade with other EU countries or buy services from abroad often need to register earlier, so ask about it at the start. The VAT page lists firms that handle registration and returns.
You should now have: a tax number, plus VAT registration if your activity requires it.
Step 5: File the beneficial owners
The Register of Beneficial Owners is separate from the companies register. A new company must file its beneficial owners no later than 90 days after incorporation. Changes must be filed within 45 days, and the details must be confirmed every year between 1 October and 31 December.
Beneficial owners are the natural persons who ultimately own or control the company. If a holding company or a trust sits between you and the Cyprus company, map the chain for your adviser so the right people are declared.
You should now have: a completed filing on the beneficial ownership register.
Step 6: Open a bank account and register as an employer
A corporate bank account usually comes after incorporation. Banks run their own due diligence and ask for a business plan, the company documents and the same identity checks again. This step often takes longer than the incorporation itself. Some founders also use an electronic money account while the bank application is under review. The bank account assistance page lists firms that prepare these applications.
If the company will employ staff, it must register with the Social Insurance Services as an employer. Foreign staff from outside the EU also need residence and work permits; see the residency and visas page.
You should now have: a working bank account and, if you hire, an employer registration.
Your first-year timeline
The deadlines that run from approval and incorporation are fixed by the Registrar. Put them in a calendar on the day the company is registered.
| when | what |
|---|---|
| Within 6 months of name approval | file the incorporation, or the name reservation lapses |
| Within 60 days of incorporation | apply for taxpayer registration with the Tax Department |
| Once supplies pass €15,600 in 12 months, or are expected to within 30 days | apply for VAT registration |
| Within 90 days of incorporation | file the beneficial owners on the register |
| Within 45 days of any change | update the beneficial owner details |
| 1 October to 31 December each year | confirm the beneficial owner details |
| Once every calendar year | file the annual return with the financial statements |
| End of each tax year | prepare audited financial statements for the tax return |
Two of these catch new owners out. The 60-day tax registration is easy to miss when the bank account is still pending, and the yearly beneficial owner confirmation falls at the end of the year, when other deadlines crowd in. A corporate secretary or accountant can track both for you.
Official fees at a glance
| item | official fee |
|---|---|
| Name approval | €10 per name, €20 extra per name for faster processing |
| Incorporation, online | €165 (€235 without share capital) |
| Accelerated incorporation | €100 extra |
| File of translations | €160 extra |
| Annual return | €20 (€20 extra for the accelerated procedure) |
| Annual company fee | abolished from 2024 onwards |
These are the Registrar’s fees only. Lawyer, secretary, registered office, accounting and audit fees come on top and vary by firm and by how complex the structure is, so compare written quotes.
The annual company fee of €350 that older guides mention was abolished from 2024 onwards by Law N.25(I)/2024. Fees for 2011 to 2023 still apply to companies that owe them.
Running the company after incorporation
Setting up is the easy part; the yearly obligations are what you budget for.
- Annual return: filed with the Registrar once every calendar year, with a copy of the financial statements. The filing fee is €20, and late filing carries a penalty that starts at up to €50 and grows each day.
- Audited financial statements: prepared at the end of each tax year and submitted with the tax return. Plan for an auditor from the first year; the audit page lists firms that offer it.
- Bookkeeping and tax returns: the accounting page and the tax compliance page list firms for both.
- Corporate secretarial work: minutes, registers and Registrar filings when directors, shareholders or the address change; see the corporate secretarial page.
- Beneficial owner confirmation: every year between 1 October and 31 December.
Common mistakes when setting up
- Reading old figures. The corporate tax rate and the annual company fee have both changed since 2024.
- Treating the director role as a formality. Directors carry legal duties, and where they take decisions can affect how the company is taxed.
- Leaving the bank account to the end. Start the bank conversation while the company is being formed.
- Forgetting the 60-day and 90-day deadlines. Tax registration and the beneficial owner filing both run from incorporation day.
- Comparing package prices without the annual costs. Secretary, registered office, accounting and audit recur every year.
Finding a firm to help in Cyprus
Accountanty lists 244 firms in Cyprus: 152 accounting firms, 68 corporate services providers and 24 law firms. Of these, 215 offer company formation and 171 say they work with foreign clients. Most are in Limassol (93 firms) and Nicosia (80), with 35 each in Paphos and Larnaca.
English is the language most firms list, followed by Greek and Russian. For a list of firms that work with clients from abroad, see accountants for foreign clients in Cyprus. The company formation page explains what a provider does, what it needs from you and what a quote should include.
Your next step to set up a company in Cyprus
The legal steps are short; the work sits in the preparation. Decide on the structure and the people, get the documents certified, and line up a lawyer for the HE1 and an accountant for the tax registration and the first audit before you file. If you would like firms to come to you, send one free quote request with your plans, and Accountanty will forward it to suitable firms. With that in place, you can set up a company in Cyprus and have it registered for tax well inside the first 60 days.