Cyprus Company Formation: The Ultimate Guide

With its sun-soaked beaches, business-friendly tax regime and affordable Golden Visa program, Cyprus has become a magnet for global entrepreneurs looking to set up shop.

The island nation combines EU status with corporate perks, making it a lucrative base for travellers eager to slash tax bills and enhance personal and business freedom.

But before diving in, there are key regulations to navigate, so the Nomad Capitalist team has put together a step-by-step guide on how to set up a company in Cyprus efficiently, legally and with minimal hassle.

Nomad Capitalist has helped thousands of wealthy investors and entrepreneurs to ‘go where they’re treated best’, whether that’s by setting up a business offshore, moving to a tax-friendly jurisdiction or seeking a second citizenship. 

Click to learn more about our holistic Nomad Capitalist plans.  

Why Start a Business in Cyprus?

Cyprus is an island in the eastern Mediterranean, south of Turkey and west of Lebanon. The Cypriot capital is Nicosia.

Cyprus gained ‌independence from Britain in 1960 and joined the EU in 2004. It still retains some aspects of British influence, including a similar common law-based legal system. 

There are some undeniable perks of launching a new company in Cyprus, notably:

• The corporate income tax rate is 12.5%, one of the lowest corporate tax rates in the European Union
• There are no taxes on dividends
• Cyprus offers more than 60 favourable double taxation avoidance agreements.

The country can play a significant role in your plan if you’re eyeing the establishment of an EU residence and a tax residence. 

As a European Union jurisdiction, Cyprus is not blacklisted. If you start a company in a blacklisted country, this can significantly complicate your tax situation. 

The Cyprus passport is ranked 24th strongest in the world, according to the Nomad Passport Index.

There are many tax incentives here, such as the following:

• 0% tax on any revenues from trading in securities such as shares, etc
• 0% tax for all profits from the sale of real estate abroad
• 0% tax on dividends paid out to the shareholders, as frequently as you like
• 0% tax on any dividends paid to it by any other company in which it holds shares
• 0% stamp duty on many occasions
• 0% tax on profits of permanent establishments abroad, such as hotels, casinos, restaurants, factories, etc
• 0% tax on any income from selling its shares
• 2.5% tax on IP rights.

Company Formation in Cyprus: Requirements

Don’t let red tape stifle your dream. We’re here to walk you through the bureaucratic obstacle course that awaits you.

You may want to establish a public limited liability company in Cyprus or establish a representative office for a parent company in Cyprus.

You may also be considering starting up a private company.

Whatever the case, there are certain stages to Cyprus company formation outlined below.

Cyprus Offshore Company Formation Process

• Check and reserve the name through the Cyprus Registrar of Companies (RCOR).
• Fill out the forms for the incorporation of this limited liability company, including a registered office address and submit them to the Register of Companies.
• Attach the scanned first page of your ID or passport, along with the occupation and complete addresses of the shareholders, director and secretary and corporate documents stating the purposes and activities of the company and the amount of subscribed share capital.
• Company law dictates that a private limited liability company must have between one and 50 members, but there is no minimum share capital for a private company limited by shares.
• The minimum share capital for a public company limited is €25,629.
• You can assign a nominee shareholder, secretary and director by signing an agreement with them that explains precisely that the nominee director, secretary and shareholder have no financial interest in the private limited liability company and are willing to serve only based on this agreement.
• Once the company is incorporated, the bank account must be opened. Hellenic Bank, Astrobank and Alpha Bank are among the most highly recommended options.
• In the meantime, local lawyers licensed by the Cyprus Bar Association can apply for a social insurance number and a self-employment certificate for you.
• When all of this is done, make an appointment with the Civil Registry and Migration Department to apply for the yellow slip, so called because this registration certificate is printed on yellow paper. This grants the right to work in Cyprus. 

Registering For Tax in Cyprus

You must register for income tax in Cyprus if you’re an individual earning more than €19,500 or if you’re a legally registered business. You’ll also need to register for VAT in Cyprus if your annual turnover exceeds €15,600.

On both occasions, you can register online using the Tax For All (TFA) portal. You’ll need to have various business details to hand, including your business address and business bank account details.      

Continuing Commitments of Foreign Companies

Every business in Cyprus, including representative offices, must maintain proper accounting records following the International Financial Reporting Standards and the provisions of the Companies Law.

Financial statements and corporate tax returns must be kept for six years.

If any foreign company terminates its business activities in Cyprus by closing a local registered office, it is obliged to notify the Civil Registry and Migration Department (CRMD) immediately.

Suppose employees of any limited liability company or the like aren’t permitted to be away from Cyprus for more than three months. In that case, they will have to obtain a re-entry permit from the CRMD or a consular entry visa from Cypriot embassies or consulates abroad.

In exceptional cases where you have not had time to obtain a re-entry permit before leaving Cyprus or the time of absence from Cyprus was unknown in advance, you will need to inform the CRMD. 

This is also the case if the destination country has no Cypriot diplomatic mission or consulate. This ensures that re-entry in Cyprus is allowed without a re-entry permit or consular entry visa.ot diplomatic mission or consulate. This ensures that re-entry in Cyprus is allowed without a re-entry permit or consular entry visa.

Pros and Cons of a Cyprus Offshore Company

As with any offshore jurisdiction, Cyprus comes with both advantages and disadvantages.

Pros of Cyprus Company Formation

Tax Benefits

As highlighted above, Cyprus stands out with its appealing corporate tax rate of just 12.5%, one of the best in Europe.

The Mediterranean nation has also established double taxation treaties, which significantly reduces the tax burden for businesses operating there.

Access to the EU

As a member of the EU, Cyprus provides businesses with valuable access to the lucrative European market along with significant regulatory benefits.

Straightforward Setup

Establishing a limited company in Cyprus can be straightforward. The incorporation process is highly efficient, meaning a business can get up and running in a matter of days.

With clear procedures in place, it’s a fantastic opportunity for entrepreneurs looking to expand offshore.

Intellectual Property Protection

Safeguarding intellectual property can significantly enhance businesses’ value.

Since joining the EU in 2004, Cyprus has demonstrated its commitment to delivering outstanding services for companies and individuals eager to secure their intangible assets.

Cons of Cyprus Company Formation

Reporting Requirements

As with most jurisdictions, adhering to accounting standards and annual financial reporting requirements is essential for all companies formed in Cyprus.

There are consequences for failing to comply, which can be significant.

Potential Language Barrier

Navigating the company formation process can be challenging at the best of times.

While many Greek professionals speak English, the fact that all official documents and proceedings are processed through Greek adds a layer of difficulty to the process.

If the language barrier is a concern, Ireland and Malta are two English-speaking jurisdictions in Europe worth considering.

Alternative Jurisdictions for Offshore Companies

Cyprus has its perks, but it’s certainly not the only appealing option available. 

Importantly, you can’t simply look at a country’s headline tax rate to decide whether you want to establish an offshore company there. 

Many countries have special tax regimes for foreign investors and entrepreneurs looking to incorporate and are worth considering. Here are some top options.

British Virgin Islands

Since introducing the International Business Companies Act in 1984, the BVI has become a leading offshore jurisdiction, boasting the highest number of registered offshore companies due to its compliance with international regulations.

Key benefits of setting up a company in the BVI include ease of formation, minimal reporting, privacy and tax benefits.

Bermuda

Setting up a company in Bermuda offers several benefits, including the Economic Investment Certificate (EIC) program, which can lead to permanent residency.

By investing in real estate, an existing business or starting a new venture, you can qualify for residency after five years.

Additionally, Bermuda has no income or capital gains taxes, and its official language is English.

Antigua and Barbuda

Setting up an International Business Company (IBC) in Antigua offers several advantages.

An Antigua IBC requires only one director and one shareholder, who can be the same person, with no minimum capital requirement. Formation and registration can be completed in just one day.

Another advantage is that the identities of beneficial owners and shareholders are not included in public records.

If you want to establish an offshore company but don’t know where to start, check out our article on the Best Countries for Offshore Companies in 2025 and set up a call with us today.

Cyprus Company Formation: FAQs

Cyprus Is Calling

Are you inspired to start a company in Cyprus after reading our guide? 

Bear in mind that we have not touched on elements relevant to business entities and individuals, such as capital gains tax, personal income tax, immovable property transfer tax and special defence contribution tax.

Nomad Capitalist will advise you on the vagaries of interest income and value-added tax for holding companies and assist with business forms, municipal taxes and rental income.

Our goal is to reduce your taxable income by making the legal system work for you. By helping you go where you’re treated best, we can help you avoid nasty surprises such as double taxation. 

Our fields of expertise include asset management, business registration and controlled foreign company (CFC) rules.

At Nomad Capitalist, we are dedicated to exploring which countries are ideal for establishing offshore companies, especially considering the ever-changing landscape of international regulations.

We help seven- and eight-figure entrepreneurs and investors create a bespoke strategy using our uniquely successful methods. We’ll help you keep more of your own money, create new wealth faster and be protected from whatever happens in just three steps. Become a client today.