Register a Company in Cyprus: 8 steps
Cyprus has become one of the most attractive destinations in Europe for entrepreneurs and businesses looking to expand or establish operations. The island offers numerous benefits, making it an ideal jurisdiction for company registration. Here’s why register a company in Cyprus is a smart business decision.
Your benefits
1. Attractive Corporate Tax System
One of the country’s biggest draws is its corporate tax rate of just 12.5%, one of the lowest in the European Union. Additionally, businesses registered in Cyprus can benefit from over 60 double taxation treaties, ensuring that income is not taxed twice in different jurisdictions. These tax advantages make Cyprus especially appealing for international entrepreneurs and companies.
2. EU Membership and Access to Markets
As an EU member state, the country provides businesses with unrestricted access to the EU market of over 450 million consumers. Registering a company also ensures compliance with EU regulations, offering legitimacy and credibility to your business operations.
3. Non-Domicile Benefits
Business owners in Cyprus can take advantage of the non-domicile tax regime, which offers significant tax exemptions. Individuals with non-domicile status in Cyprus are exempt from taxes on dividends, interest income, and capital gains (except for property), creating a favorable environment for shareholders and investors.
4. Strategic Location
Situated at the crossroads of Europe, Asia, and Africa, the island is an ideal base for businesses targeting multiple regions. The island’s geographic position, combined with its modern infrastructure and efficient ports, makes it an excellent hub for trade and commerce.
5. Straightforward Registration Process
Registering a company here is a relatively simple and streamlined process when handled correctly. The process can be completed within a matter of days, especially with the assistance of professionals who are familiar with local regulations and requirements.
6. High Quality of Life
In addition to its business benefits, Cyprus is a highly desirable place to live. With its sunny climate, safe environment, and low cost of living, it’s an excellent choice for entrepreneurs who want to combine business success with an enjoyable lifestyle.
Steps to Register a Company in Cyprus
The Process involves several key steps. Each step is straightforward but requires accuracy and adherence to local regulations to ensure compliance. Below is a detailed guide to help you navigate the process.
1. Approve a Company Name
The first step is selecting a unique and appropriate name for your company. Submit three potential names to the Cyprus Registrar of Companies for approval. The names should not conflict with existing businesses or include restricted terms. Once the Registrar approves a name, you can proceed with the registration process.
2. Draft and Submit the Memorandum and Articles of Association
The Memorandum and Articles of Association are key documents that outline your company’s objectives, structure, and internal rules.
These documents include details about:
- The company’s purpose
- Shareholder rights and responsibilities
- Management and operational procedures
Shareholders must review and sign the final versions of these documents before submission. Preparing these documents correctly is essential to avoid delays during the registration process.
3. Register with the Cyprus Registrar of Companies
Once the necessary documents are ready, the next step is to officially register the company with the Cyprus Registrar of Companies.
Submit the following:
- Approved company name
- Memorandum and Articles of Association
- Details of shareholders, directors, and the company secretary
- Proof of registered office address
Upon successful registration, your company will receive a Certificate of Incorporation, allowing it to operate legally within the country.
4. Registration at the UBO Directory
After UBO registration in Cyprus, you must declare the Ultimate Beneficial Owners (UBOs) in the UBO Directory. This step ensures compliance with EU transparency regulations.
Information required includes:
- Full name of the UBO
- Date of birth
- Nationality
- Ownership percentage
This declaration is mandatory and must be updated whenever changes occur in the company’s ownership structure.
5. Acquire a Tax Identification Number (TIN)
Once your company is registered, apply for a Tax Identification Number (TIN) from the Cyprus Tax Department. The TIN is required for all tax-related activities, such as filing corporate tax returns and making tax payments.
6. Acquire a VAT Number (if applicable)
If your company will engage in taxable activities exceeding the VAT threshold (currently €15,600), you must register for VAT.
This involves:
- Submitting an application to the VAT authority
- Providing the company’s TIN and other registration details
Even if your turnover does not exceed the threshold, voluntary VAT registration may be beneficial, especially for businesses working with VAT-registered clients.
7. Register with the Social Insurance Department
If your company plans to hire employees, you must register with the Social Insurance Department. This allows your company to contribute to the social insurance fund and other mandatory schemes.
To register, provide:
- Company details
- Employee information (if applicable)
Contributions are essential for compliance and ensuring employees receive social benefits.
8. Open a Bank Account
Finally, establish a corporate bank account in Cyprus to facilitate business transactions, pay taxes, and manage operational costs.
Banks in Cyprus typically require:
- Certificate of Incorporation
- Memorandum and Articles of Association
- UBO declaration
- Proof of directors and shareholders
RebaseCyprus can assist in selecting a reliable bank and preparing all the required documents for opening a bank account in Cyprus.
Documents Required for Company Registration in Cyprus
To successfully register a company, you must prepare and submit specific documents. Ensuring all paperwork is accurate and complete is critical to avoid delays or rejections during the registration process.
Below is a list of the essential documents required.
Every shareholder, director, and company secretary must provide valid identity documents.
These include:
- A clear copy of a passport or national ID card
- Personal details, such as full name, date of birth, and nationality
For non-Cypriot shareholders or directors, these documents may need to be notarized or certified, depending on the country of origin.
2. Proof of Address
Each shareholder and director must also provide proof of their residential address.
Acceptable documents include:
- A utility bill (e.g., electricity or water bill) issued within the last three months
- A bank statement with a visible residential address
These documents confirm the identity and Cyprus residency of key individuals involved in the company.
3. Draft Memorandum and Articles of Association
The Memorandum and Articles of Association outline the structure and operational guidelines of your company.
These documents include:
- The company’s objectives and activities
- Details of share distribution among shareholders
- Rules governing management and decision-making
A legal professional or corporate service provider typically drafts these documents to ensure compliance with Cyprus law.
4. Other Supporting Documents
Additional documents may be required depending on your company’s structure, activities, or the shareholders’ and directors’ countries of origin.
These may include:
- Certificate of Incorporation for corporate shareholders (if applicable)
- Power of Attorney if a third party is handling the registration process
- Proof of the registered office address within the country
- A signed declaration by directors confirming their acceptance of the role
How RebaseCyprus Can Help
Compiling the required documents for company registration in Cyprus can feel overwhelming, especially when dealing with certifications, translations, or complex legal requirements.
RebaseCyprus simplifies the process by:
- Preparing and reviewing all necessary documents
- Ensuring compliance with Cyprus regulations
- Assisting with notarization or translation if needed
Our team ensures everything is in place, so your company registration proceeds smoothly. Get in touch with RebaseCyprus today for hassle-free company formation!
Common Challenges and How to Overcome Them
Registering a business is a relatively straightforward process, but like any legal procedure, it comes with its own set of challenges. Being aware of these obstacles and knowing how to address them can save time, reduce stress, and ensure a smoother registration experience.
Understanding Legal Requirements
Navigating the legal framework in Cyprus can be challenging, especially for first-time entrepreneurs or international business owners. Each step, from UBO registration to VAT compliance, has specific requirements that must be followed to avoid penalties.
How to Overcome It:
- Work with a professional service provider like RebaseCyprus, who understands the regulations and ensures compliance at every stage.
- Stay informed about deadlines, documentation requirements, and updates to local laws.
Choosing the Right Business Structure
Selecting the correct legal structure for your business is crucial. Common structures include private limited companies (LTD), partnerships, and sole proprietorships. Choosing the wrong structure can lead to inefficiencies in tax obligations, operational restrictions, or even legal issues.
How to Overcome It:
- Assess your business goals, operations, and growth plans.
- Seek advice from experts who can recommend the most suitable structure for your needs. For example, an LTD is often preferred for its flexibility and limited liability protection.
Submitting Accurate Information
Incomplete or inaccurate information is one of the most common causes of delays in the company registration process. Errors in UBO details, shareholder information, or the Memorandum and Articles of Association can result in rejected applications or legal complications.
How to Overcome It:
- Double-check all forms and documents before submission.
- Use the services of a professional firm like RebaseCyprus to handle paperwork and verify that all details meet the requirements of the Cyprus Registrar of Companies.
- Keep communication clear between shareholders, directors, and service providers to ensure everyone is aligned on the required information.
We take the stress out of company registration by managing all aspects of the process. From understanding complex legal requirements to ensuring documents are complete and error-free, our experts streamline the process, allowing you to focus on building your business.
