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  • February 24, 2025
  • Connor Corporate Services Ltd
register company cyprus

Step-by-Step Guide to Setting Up a Cyprus Company in 2025

Why Set Up a Company in Cyprus?

Cyprus is one of the most attractive destinations in Europe for company formation due to its low corporate tax rate of 12.5%, extensive network of double tax treaties, and a business-friendly legal framework. Whether you are an entrepreneur, an investor, or a multinational corporation, incorporating a company in Cyprus can provide significant tax benefits, ease of doing business, and access to European markets.

In this comprehensive guide, we will walk you through the step-by-step process of setting up a tax-efficient Cyprus company in 2025.

1. Key Advantages of a Cyprus Company

  • Low Corporate Tax Rate: Only 12.5% on net profits, one of the lowest in the EU.

  • No Tax on Dividends: Shareholders of Cyprus companies benefit from no withholding tax on dividends.

  • Non-Domicile Tax Benefits: Foreign entrepreneurs can legally avoid taxation on worldwide income.

  • Access to EU and International Markets: Cyprus companies benefit from EU membership and extensive double tax treaties.

  • Confidentiality and Asset Protection: No public disclosure of beneficial owners when using nominee services.

2. Choosing the Right Type of Cyprus Company

The most common structure for international entrepreneurs is the Private Limited Liability Company (Ltd.), which offers:

  • Limited liability protection for shareholders.

  • Minimum share capital of just €1.

  • Flexibility to be used as a holding company, trading company, or for IP management.

Other options include Public Limited Companies, Partnerships, and Branches of Foreign Companies, depending on your business needs.

3. Step-by-Step Company Formation Process

Step 1: Name Approval

  • Choose a unique name and submit it to the Registrar of Companies for approval.

  • Avoid names similar to existing companies to prevent rejection.

Step 2: Preparation of Incorporation Documents

  • Memorandum & Articles of Association drafted by a lawyer.

  • Shareholder, Director & Secretary details (at least one of each is required).

  • Registered Office Address in Cyprus.

Step 3: Company Registration with the Registrar of Companies

  • Submission of all required documents to the Department of the Registrar of Companies.

  • Standard registration takes 7–10 working days.

Step 4: Obtain a Tax Identification Number (TIN) and VAT Registration

  • Companies must register with the Cyprus Tax Department.

  • VAT registration is mandatory if annual turnover exceeds €15,600.

Step 5: Open a Corporate Bank Account

  • Requirements vary by bank but typically include:

    • Incorporation documents

    • Business plan

    • Proof of source of funds

  • Cyprus offers local banking options and international banking solutions.

4. Tax Benefits and Incentives for Cyprus Companies

Corporate Tax Advantages

  • 12.5% Corporate Tax Rate (one of the lowest in Europe).

  • No Withholding Tax on dividends paid to non-residents.

  • No Capital Gains Tax (except for real estate located in Cyprus).

  • Deductible Business Expenses, including salaries, rent, and marketing costs.

Special Tax Regimes

  • IP Box Regime: Taxation of only 20% of qualifying IP income.

  • Non-Domicile (Non-Dom) Status: No tax on dividends, interest, or capital gains.

5. Maintaining Compliance and Annual Requirements

Once your Cyprus company is incorporated, you must comply with ongoing legal and financial obligations, including:

  • Annual Financial Statements & Audits (mandatory for all Cyprus companies).

  • Submission of Annual Return (HE32) to the Registrar of Companies.

  • UBO Register Compliance: Cyprus has introduced transparency requirements for Ultimate Beneficial Owners (UBOs).

  • Tax Filings & VAT Reporting (quarterly and annual requirements apply).

Failure to meet these obligations may result in fines or deregistration.

6. How Connor Corporate Services Can Help

At Connor Corporate Services Ltd, we specialize in seamless company registration, tax structuring, and compliance services. Our expert team assists with: 

✅ Name Approval & Company Formation
✅ Corporate Bank Account Opening
✅ Tax Optimization & Non-Dom Applications
✅ Ongoing Compliance & Accounting Support
✅ Virtual Office & Registered Address Services

Setting up a tax-efficient company in Cyprus in 2025 is an excellent choice for entrepreneurs seeking a business-friendly jurisdiction with low taxes and global access. With proper planning and expert guidance, you can maximize the benefits of Cyprus company formation.

📞 Contact us today to discuss your tailor-made Cyprus company incorporation plan!

FAQs on Cyprus Company Registration

Q1: Can a foreigner own 100% of a Cyprus company?
Yes, there are no restrictions on foreign ownership.

Q2: How long does it take to register a company in Cyprus?
On average, 7-10 business days.

Q3: Do I need to visit Cyprus to set up my company?
No, everything can be handled remotely with Connor Corporate Services Ltd.

Q4: What are the costs associated with company registration in Cyprus?
Costs vary, but a basic registration package starts from approximately €1,199 including government fees.

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