CyprusWe assist global clients looking to do doing business in Cyprus with the A to Z of business setup without the need for the client to travel to the territory. Some of our services include:
Regulatory licenses across all sectors
Provision of nominee directors and shareholders
Recruitment and employee hiring
Virtual/Physical Office space solutions
Employment and residency visas
The most common corporate structures preferred by foreign investors setting up in Cyprus include i) the limited liability company (LLC/LTD) and ii) the branch office.
Business entity types in Cyprus
Here’s a complete overview of incorporating a company in Cyprus, including advantages, disadvantages, business entity types, and incorporation steps:
- Low Corporate Tax Rate: Cyprus has one of the lowest corporate tax rates in the EU at 12.5%.
- EU Membership: As an EU member, Cyprus offers access to European markets, laws, and VAT advantages.
- Extensive Double Tax Treaties: Over 60 double taxation treaties in place, minimizing tax liabilities.
- No Withholding Taxes: No withholding tax on dividends, interest, or royalties paid to non-residents (under conditions).
- Efficient Company Setup: Incorporation can take 5–10 business days, with relatively low administrative burden.
- Economic Reputation Concerns: Past banking issues and association with offshore schemes may raise due diligence flags.
- Substance Requirements: EU pressure requires actual economic presence, not just “brass plate” companies.
- High Audit and Reporting Obligations: Annual audits and filings are mandatory, even for small companies.
- Banking Challenges: Opening a bank account for foreign-owned companies can be difficult due to KYC/AML laws.
- Limited Talent Pool: Depending on your sector, finding local skilled labor can be a challenge.
Steps to Incorporate a Company in Cyprus
Name Approval
- Apply to the Registrar of Companies to reserve and approve the company name.
- Usually takes 2–3 business days.
Prepare Documentation
- Key documents include:
- Memorandum & Articles of Association
- Declaration forms (HE1, HE2, HE3) for directors, registered office, and secretary
- Copies of passports and proof of address for shareholders/directors
- Key documents include:
Register with the Registrar of Companies
- Submit documents to the Department of Registrar of Companies and Intellectual Property (DRCIP).
- Receive:
- Certificate of Incorporation
- Certificate of Shareholders
- Certificate of Directors & Secretary
- Certificate of Registered Office
. Tax & VAT Registration
- Register with the Tax Department for a Tax Identification Number (TIN).
- VAT registration if annual turnover exceeds €15,600 or if providing certain services.
Social Insurance Registration
- Register the company as an employer and enroll employees with the Social Insurance Services.
Open a Corporate Bank Account
- Required to operate the business. Banks will need certified documents and detailed information for AML/KYC compliance.
Girimba Consulting conducts business with openness, transperancy and honesty.We respect and uphold our Clients’ confidentiality, we offer quality service at affordable rates. Contact us for professional solutions.
Clarence S. Carlos
Regional Cordinator
Clarence is our regional cordinator and head of business setup secretariat.