Cyprus Company Formation

It is a full member of the EU and is also part of the Eurozone.
The Governing law is the Cyprus Companies Law 149 (Companies Act 2018). 
Cyprus is a common-law jurisdiction. 

Cyprus is an independent country in the Eastern Mediterranean. Nicosia is the capital with Larnaca, Limassol and Paphos being the other main towns.


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.



Director & secretary requirements

Corporate directors are now permitted in Cyprus; Professional directors (nominees) are frequently used both to protect the privacy and to establish the place of management & control. 

A Cyprus company secretary may also be corporate but must be resident in Cyprus.

Shareholder requirements

A minimum one shereholder is required and corporate shareholders are allowed. 

Public records 

Cyprus maintains a public registry from which one can obtain details of the company's officers and shareholders.

Tax rate 

Corporate tax rate 12.5% for resident companies. Zero tax for non-resident companies. Cyprus also has a vast network of tax treaties, particularly with EU & CIS countries to avoid double taxation. Dividends may be distributed to shareholders outside Cyprus without furher taxation.

Filing Of Accounts/ Financial Statements for Cyprus Companies

Accounts (Financial Statements) do need to be prepared, audited and filed with the Inland Revenue in Cyprus.

We can introduce bookkeeping and accounting services, and can arrange for audit with a local firm of Accountants.

VAT number

Cyprus VAT rate is 19%
Their is an obligation for trading companies to register for VAT once EU turnover reachers  €35,000 p.a.
This makes Cyprus company an ideal vehicle for trading within the EU.
We can arrange for Cyprus companies to obtain VAT registration.

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.


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