How to open a company in Cyprus

How to open a company in Cyprus

Establishing a virtual office

Establishing a virtual office is suitable for small companies. This might be the right way for you if you need to fulfill substance company requirements in Cyprus but don’t have a large budget to spend. They can be in compliance while reducing their costs. A virtual office comes with some perks like complementary use of a conference area or a private office.

Establishing a physical office

The other option is to rent a physical space. In this case, your possibilities become wider since you can meet clients and access  required technology. There are also agreements that provide flexible leasing and short-term contracts.

Benefits of establishing an office in Cyprus

Cyprus economy is one of the freest in the EU. On top of that establishing an office, whether virtual or physical, you’ll have the following advantages:

• Being in compliance with the company requirements in Cyprus and the OECD regulations.
• Being in compliance with Article 5 of the Model Treaty.
• Being in compliance with law 118 from the Cyprus income tax legislation.
• Cutting down expenses by leasing flexibly or establishing a virtual office.
• You don’t have to invest in real estate property.
• There are deals where you don’t have to pay a deposit in advance for renting an office space.
• In many cases you can cancel the agreement as long as you give 30 days’ notice.

Advantages of registration your company in Cyprus

• Strategic location near the Middle East and North Africa.
• A vibrant business environment with a wide use of English language.
• The corporate rate is only 12.5% of profit before tax, being one of the lowest percentages of the EU.
• Cyprus doesn’t apply withholding tax on dividends paid to non-residents.
• You can get your VAT number in only 2-5 business days.
• No taxes on capital gains.*
• No taxes on employees’ salaries outside of Cyprus.*
• Treaties to avoid double taxation with over 50 countries including Spain and the United Kingdom.
• Dividends derived from income are totally exempt from taxes.
• Companies in Cyprus accept income from jurisdictions like Seychelles, Belize, the BVI, Panama, and Costa Rica.*
• Bank accounts in Cyprus are accepted by major online payment platforms like PayPal.

*for details and exemptions please contact us

Cyprus company registration step by step

1. Fill out the form of company formation provided by your lawyer and sign it.
2. Provide a notarized copy of the passport for all the persons involved in the company.
3. Provide a recent utility bill for every natural person involved in the company. It must not be older than three months.
4. Provide a bank reference letter which must be original and not older than three months. They must be issued in the name of each of the natural persons involved.
5. Provide a detailed CV for each UBO.

Timelines

Getting the company name approved and preparing the documents for the registry approximately take one week each. However, keep in mind that timelines may change depending on the authorities’ response.

The above is for informative purposes only. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.