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Cyprus Company Formation

  1. Services

Bariono Wealth Advisors Ltd

Cyprus Company Formation

Cyprus enjoys the privileged position of being an EU member and a reputable international business centre. With substantial tax incentives, a wide network of Double Tax Treaties covering all central and eastern European countries and a strategic geographical location at the crossroads of Europe, the Middle East and Africa, Cyprus is the perfect location for international business companies.

The process of incorporating a business in Cyprus is a quick and straight-forward procedure. As soon as an appropriate name is chosen* and the relevant application forms are submitted to the Registrar of Companies, the approximate time required for incorporation to be completed will range between 10 to 15 days.

*Appropriate names are those not already registered in Cyprus or other jurisdictions and which are not in any way offensive or misleading.

Cyprus companies’ requirements at a glance

  • Minimum share capital issued: €1.00
  • Shareholder: At least one shareholder must be appointed, but they do not have to be a Cyprus resident.
  • Directors: At least one director must be appointed, but they do not have to be a Cyprus resident.
  • Secretaries: Required. It is advisable that they are a Cyprus resident.
  • Registered office address: The company must have a registered address in Cyprus.
  • Annual returns: Required. All Cyprus companies are required to submit annual audited financial statement. There are no exemptions for small or dormant entities.
  • Annual General Meetings: At least one general meeting must be held on an annual basis. The first annual meeting must take place within 18 months from the date of incorporation.
  • License fees: Annual company levy of €350
  • Corporation tax rate of 12.5%
  • VAT returns: Companies which engage in activities which are not VAT-exempt must register with the VAT department and submit quarterly VAT returns.

The incorporation principle has not been adopted in Cyprus. As a result, a Cyprus company (under the Income Tax Law of 2003 (118(I) 2002)) can be either tax resident in Cyprus or non-tax resident. A company is deemed resident for tax purposes in Cyprus only if it has its management and control in Cyprus, regardless of its country of incorporation.

Where a Cyprus company does not have its management and control in Cyprus then the company is subject to 0% taxation on its worldwide income in Cyprus and to 12.5% on any income generated in Cyprus. For the non-residency rule to apply, the company’s directors, in their majority, must exercise management and control outside Cyprus.

A Cyprus non-tax resident company is not exempted from the requirement to submit annual tax returns, indicating in which country its generated income will be taxed. Cyprus non-tax resident companies are also required to submit annual accounts to the Registrar of Companies in line with the requirements of the Cyprus Companies Law, Cap. 113.

Why Cyprus

  • Cyprus legislation favours foreign investors seeking to establish companies here.
  • Cyprus boasts one of the lowest corporation tax rates in the European Union at 12.5%.
  • Dividends paid to a Cyprus resident company are exempt from corporation tax. There is also no withholding tax on dividends declared by companies to non-resident shareholders.
  • There is an 80% exemption on qualifying profits generated from the exploitation of intellectual property.
  • Cyprus has a wide network of double taxation treaties with more than 50 countries.

What we can do for you

Bariono Wealth Advisors provides a comprehensive set of services in relation to company formation in Cyprus.

  • We stand by your side throughout the process of establishment, maintenance and administration of your business.
  • We look into your specific circumstances and provide structuring advice with a strong focus on effective tax planning structures.
  • We handle all the necessary paperwork during the incorporation stage, ensuring that your application is processed in a prompt and efficient manner.
  • We help you open a corporate bank account with any bank of your choice.