News / Cyprus Company Formation FAQs
The island is a long established reputable and tax efficient financial centre, and is considered as one of the most attractive jurisdictions in Europe to form a limited liability company due to its advantageous tax system.
Cyprus holding companies enjoy all the benefits that the low tax jurisdiction has to offer such as full exemption from tax on dividend income, no withholding tax for dividends paid to non-residents, no capital gains tax and one of the lowest company tax rates in Europe of just 12.5%. In addition, companies can benefit from Cyprus’ wide double tax treaty network with more than 60 countries.

We present below the most frequently asked questions about incorporating a Cyprus entity. 
1. What are the tax benefits of incorporating a company in Cyprus?
The main incentives for locating a business in Cyprus include:
  •          12,5 percent corporation tax, the lowest in the EU
  •          Exemption from tax on dividend income, in most instances
  •          No tax of profits from foreign Permanent Establishment (PE), in most instances
  •          Exemption from tax on profits from shares, securities, bonds and units
  •          No withholding tax on the repatriation of income as dividends, interest and loyalties
  •          Extensive double tax treaties network
  •          Access to EU Directives
  •          No thin capitalization rules
  •          Absence of Controlled Foreign Company (CFC) rules thus exempting foreign income received
  •          Flexible reorganization rules and group relief provisions
2. What is the procedure of incorporating in Cyprus?
Before any other steps are taken, the Registrar of Companies must be approached to approve whether the name by which the company is proposed to be incorporated is acceptable. After the name is approved, the necessary documentation needs to be prepared and filed. Such documents are the articles of incorporation and memorandum of association, registered address, directors and secretary.
3. What are “corporate documents”?
It is recommended to ensure that upon the incorporation of the company, its beneficial owners or other appropriate officials are provided with copies of all corporate documents, properly legalized and translated were appropriate, from Greek to English or any other language requested. Such corporate documents normally comprise:
  •                      Certificate of incorporation
  •                      Memorandum and articles of association
  •                      Certificate stating the company’s registered office address
  •                      Certificates of directors, secretary and shareholders
  •                      Share certificates
  •                      Statutory and other necessary minutes of the meetings of the directors and shareholders and shareholders
  •                      Letterheads, invoices and other stationary of the company
  •                      Any other documents pertaining to the company’s activities up to date of its establishment
4. What is the Memorandum and Articles of Association?
Every Cyprus company must have its own Memorandum and Articles of Association. The memorandum contains the basic information of the company such as the company name, registered office, the objects of the company and so on. Care must be taken that the first few object clauses are tailored to the specific circumstances and main business objects and activities of the company.
The articles specify rules about the governance of the internal management of the company and regulations about the rights of the members (appointment and powers of directors, transfer of shares, etc.).   
5. What are the share capital requirements?
There is no legal requirement as to the minimum or maximum share capital of the company. The usual nominal share capital is €1.000, however, should s higher capital be required then the stamp duty of 0.6 percent on the increase on authorized capital needs to be paid to the Registrar of Companies.  
6. What is the minimum number of directors and shareholders, and who can be one?
Under Cyprus Law, every company limited by shared must have a minimum of one director, one secretary and one shareholder. From a tax-planning point of view, it is often required that the company is shown to be managed and controlled in Cyprus and, accordingly, it is recommended that the majority of the directors appointed are Cyprus residents. 
7. What information is required for each shareholder and /or beneficial owner and director?
For shareholders: full name,  date and place of birth, nationality, residential address, utility bill as proof of the residential address or passport with registration stamp for CIS countries, occupation (CV is required), notarized copy of passport, number of shares to be held.
For directors: full name,  date and place of birth, nationality, residential address, utility bill as proof of the residential address or passport with registration stamp for CIS countries, occupation (CV is required), notarized copy of passport and recent bank reference letter.
Additional information may be required, depending on each case.
8. Do you offer nominee services?
Our company offers our clients nominee services in the following categories:
-           Nominee Director(s)
-           Nominee Secretary
-           Nominee Shareholder(s)
-           Registered office
9. What is a registered office?
Every company must have a registered office from the day it commences business or within 14 days after its incorporation, whichever is earlier. The registered office is the place where all the official documents of the company are located and it is at the registered office where the company’s register of members is kept, unless the company informs the Registrar of Companies of another place.
10. How long does it take to register a company in Cyprus?
It usually can take up to 10 working days to establish a new company in Cyprus. If time is of high importance, there are shelf companies available.
11. What is a shelf company?
Shelf companies are already registered companies with no prior activity. Shelf companies have a past incorporation date and an existing registration number and can be easily transferred to a client within one working day, which gives the advantage of time for urgent situations. 
12. Can you open a bank account for a Cyprus company? 
Yes, a company registered in Cyprus may open a bank account worldwide. In most cases, the account can be opened without a personal visit.  

If you are considering to register a Cyprus company and to request a quotation please e-mail us at 

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