FAQ

Is it compulsory for the beneficial owners to visit Cyprus for the incorporation of a Cypriot Company?

It's not mandatory for the beneficial shareholders to be in Cyprus during any stage of the Company incorporation unless they willingly want to.

What annual requirements should a Cypriot Company fulfill per year?

Every Cypriot company is liable to an Annual Levy of Euro 350 payable to the Registrar of Companies, and is entitled to submit on a yearly basis Audited Financial Statements to the Income Tax Office. It's important to note that the Annual Return together with the audited financial statements must be submitted with the Registrar of Companies.

What factors should I consider after the company incorporation?

  • Get a Tax Number from the Cyprus Tax Authorities
  • Confirm if there is a need to register for a V.A.T. number
  • Inquire if it's necessary to register with the Social Insurance authorities in Cyprus

What do you need to open a bank account in Cyprus?

You can open a bank account with any bank in Cyprus. For a company bank account, you have to submit the company incorporation documents along with a copy of passport(s), utility bills, bank reference letter, etc.

Is it mandatory for a company to have an office in Cyprus?
 
 

According to the Cyprus law, it's compulsory to have a local registered office in Cyprus. The incorporation documents must be kept at this address. At SIGTAX, we offer special virtual office packages which include a local address to organizations that cannot open a physical office in Cyprus.

What is the minimum share capital required to open a company in Cyprus?

Mostly, there is no obligatory minimum share capital required in Cyprus. Nevertheless, we strongly recommend that you deposit an initial capital of at least 1,000 EUR when you are starting. In the case that you are opening a public limited liability company, the required minimum share capital is 25,630 EUR.

What are the types of taxes levied in Cyprus?

With its corporate income tax at 12.5%, Cyprus has one of the lowest tax rates in the world. For dividends, the tax rate is 17% unless a double tax treaty applies. Further taxes in Cyprus include social security contributions, capital duty, real property tax, stamp duty, and transfer tax.

 

 

Is it required to have special permits or licenses for doing business in Cyprus?

Yes. Certain types of business activities require special permits, which may differ depending on the company’s object of activity.

 

What are the types of companies that one can open in Cyprus?

Both foreign and local investors can open the following company types in Cyprus: private and public limited companies, sole proprietorships, partnerships or branches of foreign companies.

Why should you invest in Cyprus?

Cyprus has a strategic geographical location and is the base for many global import and export companies.  Most importantly, the country has a favourable taxation system, a sound legal and regulatory framework and qualified workforce.
 
 

Can foreigners incorporate a company in Cyprus?

 
The short answer is: yes. In fact, the Cypriot jurisdiction highly promotes foreign investment through significantly low tax rates and other incentives. Foreign investors can open the same types of legal entities as national investors.

How long does it take to open a company in Cyprus?

The company incorporation process usually does not take longer than 10 days, considering all the necessary documents are prepared accordingly.

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