Cyprus has become a popular place to open a company. Many entrepreneurs and digital nomads choose it because of the low taxes, EU market access, and easy setup process. Whether you are starting a new business or expanding from abroad, Cyprus offers an attractive system for business owners.
In this step-by-step guide, we’ll walk you through exactly how to open a company in Cyprus in 2025. We’ll discuss how to choose the right business structure, register your company, and follow local regulations.
If you're ready to get started and want expert help along the way, explore our Cyprus Company Formation Service
Step-by-Step Guide: Company Registration in Cyprus 1. Get Professional Help Only lawyers registered with the Cyprus Bar Association can prepare and file the documents needed to register a company. These include Form HE1, the Memorandum, and the Articles of Association. Additionally, all paperwork must be filed in Greek with the Registrar of Companies. A licensed lawyer will also handle the process correctly and help you avoid delays or legal issues
2. Choose a Company Name The next step is to settle on a name for your company. The name must be unique and approved by the Registrar of Companies, before company registration can proceed. You must submit an application to reserve the name and make sure it follows the naming conventions set by Cypriot law.
The Registrar of Companies may reject the name if it's the same or too similar to an existing company. The approval process takes somewhere between 3 to 5 business days. However, if you are in a rush, your lawyer can provide you with a list of pre-approved names for you to choose from.
3. Choose the Right Company Structure Before setting up a company in Cyprus, you’ll need to decide what kind of company to form. You have four main types to choose from:
Private Limited Company (Ltd): The most common and flexible company structure in Cyprus. Offers limited liability and is suitable for trading, consulting, or holding companies.Public Limited Company (Plc): For businesses planning to raise capital from the public or list on a stock exchange. Requires at least 7 shareholders.Branch Company: Used by foreign companies that want to hire staff in Cyprus, without setting up a separate legal entity. The parent company remains fully responsible for all activities.Partnership: Can be general or limited. Often used for joint ventures or small-scale collaborations. Just as with branch4. Prepare the Memorandum and Articles of Association All companies registered in Cyprus must have a Memorandum and Articles of Association. These documents explain the company’s purpose, how it will operate, and the responsibilities of its shareholders and directors.
To prepare them, you need to provide:
The company’s planned business activities The amount and currency of its share capital (usually €1,000) How the shares are divided between shareholders If the company will be operating in a regulated sector, such as financial services or insurance, the documents must meet extra requirements. Your lawyer will prepare them and file them in Greek.
5. Appoint Directors and a Company Secretary Cypriot law requires a company to have at least one director and one company secretary. The same person can act as both if there is only one shareholder. However, if there are two or more shareholders, the director and secretary must be different individuals.
Companies with directors living abroad must still ensure that a majority of its directors are tax residents of Cyprus. Otherwise, tax authorities will not treat the company as a Cyprus tax resident.
To solve this, many companies appoint nominee directors who are tax residents of Cyprus. This lets the company keep its tax residency and continue enjoying the tax benefits. Nominee services are offered by local law firms and help your company maintain its tax residency status.
6. Shareholders and Share Capital Your company must have at least one shareholder. Cyprus has no limitations on who can be a shareholder of a company. This means that shareholders can be of any nationality, non-residents, and can own 100% of the company.
A Cyprus private limited company can have up to 50 shareholders. The standard minimum authorised share capital is usually €1,000, but there is no official minimum required by law. This amount is typically divided into 1,000 shares of €1 each, although the nominal value per share can be as low as €0.01, depending on your needs.
7. Determine the Registered Office Address Every company must have a registered address in Cyprus. This address serves as the official point of contact for government communications and legal notices. Therefore, it's essential that its functional and easily accessible for you or your representative.
Unlike in some other European countries, you can use your home address if you live in Cyprus and don’t need a separate office. If you do not live in Cyprus however, local law firms can provide you with a registered office for an annual fee.
8. Register with the Registrar of Companies Submit the required forms and documents to the RCOR, including:
Memorandum and Articles of Association. Shareholder and director details. Registered office address. Once these are approved, your company will be officially registered and receive a Certificate of Incorporation.
9. Obtain a Tax Identification Number (TIN) Next up is registering your company with the Cyprus Tax Department to receive a TIN. This is mandatory for VAT registration (if applicable) and overall tax compliance. Without this step, your company cannot legally operate.
10. Open a Bank Account You’ll need to open a business bank account in Cyprus to handle your company’s payments and income. To do this, you must submit basic company documents like the Certificate of Incorporation, the Memorandum and Articles of Association, and proof of your company’s registered address.
Ensure all shareholders and directors provide identification documents. This process is time consuming and takes approximately 1 and 2 months at traditional local commercial banks in Cyprus. However, online banks like Revolut take only a few days to process. If you need a commercial bank, we recommend getting professional help from your lawyer.
11. Appoint an Auditor All companies in Cyprus must appoint a licensed local auditor. Your auditor checks your bookkeeping and prepares your annual financial statements each year. Companies are also required to keep accounting records for at least seven years.
Since authorised auditors in Cyprus are also licensed accountants, many choose to outsource their accounting and audit to the same provider. This keeps things simple, compliant, and cost-effective. Just make sure your auditor is approved by the Institute of Certified Public Accountants of Cyprus (ICPAC).
12. Apply for Licenses or Permits If your company operates in a regulated industry, you might need specific licenses or permits to operate legally. Check the requirements for your sector and apply for any necessary approvals before you start operating.
Obligations after Registration Once the company is operational, you must:
File annual accounting and tax returns with the Registrar. Register for VAT and submit regular reports (if applicable). Maintain proper accounting records. Submit audited financial statements annually. Update the Ultimate Beneficial Owner (UBO) registry annually to ensure compliance with Cyprus regulations. Submit Anti-Money Laundering (AML) reports as required by law. Regular compliance ensures your company operates without interruptions or legal complications.
Costs of Registration and Maintaining a Company in Cyprus Registration Fees The cost of registering a company in Cyprus typically starts at around €1,800. This usually covers government fees and legal assistance for setting up the company. If you need extra services like a nominee secretary, nominee director, or a registered office, the total cost rise to about €4,000.
Be cautious of firms advertising extremely low fees (e.g., €500). These deals often hide a lot of extra fees or skip important steps needed for proper registration.
Annual Fees Annual fees depend on the services you choose but generally include:
Nominee Director: Nominee directors act on behalf of the company and are often used to ensure tax residency compliance. Fees range from €1,100 to €1,400 annually.Nominee Secretary: All companies in Cyprus must appoint a secretary. A nominee secretary helps manage compliance, including document filings and maintaining corporate records. Fees range from €400 to €600 annually.Nominee Shareholders: For clients seeking privacy, nominee shareholders are available at annual fees of €500 to €750.Registered Office: All companies in Cyprus must have a registered office address where their official records are kept. If you don’t live in Cyprus or have an office there, a local law firm can provide this address for you. The service usually costs around €400 per year and often includes mail handling and forwarding.Accounting and Auditing Fees: These vary based on the number of transactions and the size of the business. Larger accounting firms or more complex operations are more costly.Annual Return Filing: Companies must file annual returns with the Registrar of Companies. The government stamp cost is €125, plus professional fees for preparation and submission.Benefits of Opening a Company in Cyprus The government of Cyprus has taken several steps to attract entrepreneurs, digital nomads, and investors to the island. Not purely to run a business, but also to relocate and reside. As such, the country offers several attractive benefits for those setting up a company in Cyprus:
Quick company registration: You can open a company in Cyprus in just 5–10 business days.Low setup and maintenance: More affordable than most other EU countries for both formation and annual maintenance.EU market access: Trade freely across the EU single market without additional regulatory barriers.12.5% corporate tax rate: One of the lowest in the EU, helping you maximise profits.0% withholding tax: Cyprus does not tax dividends paid to non-residents. It also does not charge capital gains tax on shares or other securities, unless they involve local real estate.0% dividend tax: Shareholders who are non-domiciled tax residents in Cyprus, are exempt from 17% tax on dividend.65 double tax treaties: With countries like the US, UK, and most EU countries, so you can avoid double taxation.Tax residency certificate: Proves that your company is a Cyprus tax resident, required for treaty benefits.British common law: Cyprus follows British common law, making its legal system familiar, transparent, and business-friendly.Remote management and ownership: Open and operate your company without living in Cyprus, while maintaining its tax residency status.Fully compliant jurisdiction: Cyprus is not considered an offshore location. It meets all EU and OECD standards, making it a reputable choice for serious businessesThese benefits make Cyprus one of the most attractive jurisdictions in Europe for both active businesses and holding companies. To learn more, read our full guide on the tax advantages of a Cyprus company
Conclusion Opening a company in Cyprus can be simple, but it’s important to follow each step carefully. From registration to tax and legal requirements, getting it right from the start will save you time, money, and stress later.
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