Registering a Company in Cyprus: Quick Guide for Foreign Clients

At GEORGE LIASIDES LLC, with over 30 years of legal expertise in Cyprus, we regularly assist international clients in registering a company in Cyprus and establishing various business entities. This article provides a clear overview of the registration process and why Cyprus remains a top choice for foreign clients.

Cyprus offers several advantages as a member of the European Union, including a strategic location, a business-friendly and stable legal environment, and an attractive tax regime. Notably, Cyprus ranks second in the European Tax Policy Scorecard Rankings (ETPS) by the Tax Foundation Europe.

Why Register a Company in Cyprus?

Cyprus combines a reputable legal system, EU market access, and one of the lowest tax jurisdictions in the EU. These benefits have consistently positioned Cyprus among the most favorable places in Europe for company registration.

Additionally, the operational costs in Cyprus are competitive when compared to other jurisdictions. English is widely spoken in business, making communication seamless for foreign investors.

Foreign-owned companies that meet the criteria as Companies of Foreign Interest benefit from streamlined work permit processes for expatriate employees and support from the Business Facilitation Unit (BFU). These advantages, combined with over 320 days of sunshine annually and a high quality of life, make registering a company in Cyprus an attractive decision for many.

Cyprus also acts as an ideal gateway to EU markets while providing easy access to the Middle East and North Africa (EMEA region). Companies in Cyprus trade freely within the EU’s single market and benefit from EU trade agreements and standards.

Cyprus has a stable legal framework based on English common law and strong regulatory compliance aligned with EU and OECD standards. There is no withholding tax on dividends, no capital gains tax for the sale of shares, and no tax on interest or royalties paid abroad.

Cyprus offers:

·         One of the lowest corporate tax rates in Europe (12.5%)

·         Over 65 double taxation treaties

·         100% foreign ownership

·         No restrictions on capital repatriation

·         IP Box Regime for qualifying intellectual property income (effective tax as low as 2.5%)

Types of Companies

There are different company types available, and choosing the right structure is important as it affects liability, compliance obligations, and operations.

The most common corporate structure is the Private Liability Company (Ltd). It offers limited liability (up to the unpaid amount on shares) and requires no minimum capital. At least one shareholder (individual or corporate) and up to 50 shareholders are allowed.

For larger ventures or companies seeking listing on a stock exchange, a Public Limited Company (Plc) is the most suitable. Additionally, clients may choose from General Partnerships, Limited Partnerships, or a Branch of a Foreign Company. We always advise consulting a professional before deciding which structure best suits your needs.

Requirements for Registering a Company in Cyprus

One of the major benefits of registering a company in Cyprus is the straightforward process. It typically takes 8–12 days to complete. Below is an outline of the steps involved:

·         Choose a unique company name and obtain approval from the Registrar of Companies. We advise clients to submit 2–3 alternatives in case the first is not accepted.

·         Prepare the essential documents, including the Memorandum & Articles of Association. These can be broadly worded to allow flexibility in business activities.

·         Under Cyprus law, a licensed Cypriot lawyer must sign the incorporation document (HE1).

·         Appoint at least one shareholder (can be a foreigner), one director (any nationality, not necessarily resident in Cyprus), and a company secretary.

·         Maintain a registered office address in Cyprus (P.O. boxes are not accepted).

·         After incorporation, complete post-registration tasks such as tax registration, VAT registration (if applicable), submission of the UBO register, and opening a bank account.

Notably, you do not need to be physically present in Cyprus to set up a company.

Importance of Nominee and Secretarial Services

To ensure privacy and local compliance, many foreign investors use nominee services. In Cyprus, company registers are public, meaning the names of shareholders and directors are visible. Understandably, many international clients prefer not to disclose their personal details due to privacy, security, or strategic reasons.

While the public cannot access information on beneficial owners, the authorities have this data through the confidential UBO register.

Nominee Shareholders and Directors

Nominee appointments help protect your identity and ensure the company maintains tax residency in Cyprus. Although directors can be foreign nationals, for tax residency purposes, it is strongly recommended to appoint Cyprus residents as the majority of directors.

In practice, appointing a Cypriot professional director (nominee) helps maintain governance and operational continuity when owners reside abroad.

Company Secretarial Services

Company secretarial services are essential for:

·         Ensuring ongoing statutory compliance

·         Timely filing of annual returns and reports

·         Maintaining administrative efficiency

Our firm has extensive experience offering comprehensive nominee and secretarial services. We aim to provide confidentiality, professional management, and peace of mind.

Conclusion - Registering A Company in Cyprus

Registering a company in Cyprus is a smart choice for those seeking an EU base, a tax-efficient structure, or an entry point to a new market. Cyprus offers a rare mix of advantages—legal clarity, competitive taxation, strategic location, and high-quality professional services.

By selecting the right company type and using nominee or secretarial services, foreign investors can establish and manage a Cyprus company with full compliance - even from abroad.

How We Can Help

With decades of experience in corporate legal services, GEORGE LIASIDES LLC is ready to support you at every step—from incorporation to ongoing administration.

Contact us today to learn how we can help you register a company in Cyprus and manage it efficiently.