1. Structure and shareholding
Decide who owns the shares, who acts as director and where management and control genuinely sit. This drives the company's tax residency.
Business guide · Cyprus company
Setting up a company in Cyprus
A Cyprus private limited company gives EU standing, 12.5% corporate tax and a clean route to paying yourself dividends tax-free as a Non-Dom resident. What decides the outcome is not the incorporation itself — it is choosing the right structure, giving it real substance and staying compliant. Here is how it works in practice.
The steps, in order
2. Name approval
Submit the proposed name to the Registrar of Companies for approval before incorporation.
3. Incorporation
Memorandum and articles, share capital, registered address, directors and secretary filed with the Registrar.
4. Tax and VAT registration
Register for corporate tax and obtain the tax identification code; register for VAT where your activity or turnover requires it, and for social insurance if you employ people.
5. Banking
Open a Cypriot bank account or an EMI account. Expect full source-of-funds and business-plan due diligence.
6. Substance and accounting
Real address, local decision-making, contracts, bookkeeping from day one, annual audit and returns.
Realistic timeline: two to four weeks to incorporate and register; add time for banking due diligence.
The tax picture
- 12.5% corporate income tax on profits
- Effective 2.5% on qualifying IP income under the IP Box regime
- 0% tax on dividends received by a Non-Dom resident shareholder, for up to 17 years
- No withholding tax on dividends paid to non-residents
- Extensive double tax treaty network and full EU directives access
- Standard VAT 19%, with reduced rates and exemptions depending on activity
What it actually costs
- — Incorporation and registry fees, plus name approval
- — Annual accounting and mandatory audit
- — Registered address and secretarial services
- — Annual company levy and filings
- — Optional: VAT compliance, payroll, legal drafting through a partner lawyer
Points to watch
- — Substance is everything: management and control must genuinely be exercised in Cyprus.
- — Your home country may still tax the company or you personally if you keep tax residency there.
- — Audited accounts are mandatory every year, whatever the size of the company.
- — Bank account opening is the slowest step and can be refused on weak documentation.
- — Salaries drawn locally trigger social insurance and GESY contributions.
Frequently asked questions
How long does it take to register a Cyprus company?
Name approval usually takes a few working days, and incorporation follows once the documents are signed. A straightforward private limited company is generally operational within two to four weeks, including tax registration and a bank or EMI account.
What is the corporate tax rate in Cyprus?
The standard corporate income tax rate is 12.5%. Under the IP Box regime, qualifying intellectual property income can be taxed at an effective rate as low as 2.5%. Dividends paid to a Non-Dom resident shareholder are not taxed in Cyprus.
Do I need an office and staff in Cyprus?
You need genuine substance: a real address, local management and decision-making, and activity that matches your structure. A shell company with no substance is the main reason structures are challenged by foreign tax authorities.
Can a non-resident own 100% of a Cyprus company?
Yes. Foreign individuals and companies can hold 100% of the shares. Directors can be non-residents, but tax residency of the company depends on where management and control are genuinely exercised.
What are the ongoing obligations?
Annual audited financial statements, corporate tax returns, VAT filings if registered, an annual levy and register filings. Budget for accounting and audit fees from the start.
Let's structure it properly
Book a 60-minute one-to-one call: we review your activity, your residency and your income, then map the right structure, the documents, the timeline and the real costs. A partner lawyer and accountant step in where legal or audit work is needed.
General information on Cyprus company and tax rules, accurate to the best of our knowledge; this is not personalised tax or legal advice.