Our Cyprus company formation services
We offer company formation services with a bank account or e-wallet. Please visit our packages page for more information.
RESIDENT OR NON-RESIDENT CYPRUS COMPANY?
The vast majority of Cyprus companies are formed as resident companies. Such companies gain access to EU markets, may be registered for VAT (a requirement for trading within the EU). Resident, Cyprus companies are liable for tax - currently 12.5% on profits.
However, a second option exists, and that is for a Cyprus non-resident company. Such a company will generally be managed from outside the EU (to avoid complications with VAT) and will not pay corporate taxes in Cyprus.
Please read a short summary detailing the differences between both types of companies.
Cyprus resident company
For trading within the EU, a VAT number is required where turnover aceeds €35,000, and therefore, a Cyprus resident company is the only option.
Resident companies pay tax at 12.5% (see taxes below) and in every respect are "normal" EU companies.
In all cases, a locally resident director is required to establish management and control. The company's trading address should be in Cyprus.
Cyprus non-resident company
Where a Cyprus company does not require a VAT number and ensures that its management & control is outside Cyprus, it is deemed to be non-resident.
By being designated as a non-resident, no Cyprus corporate taxes are payable. It is important to note that the company may not do any business within Cyprus (other than the purchase of professional services), and should not trade within the EU. Although no tax is payable, an audit must still be carried out and accounts filed.