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General Fact Sheet - Cyprus Companies

The Cyprus Companies Fact Sheet is also available in PDF format.  Download it by clicking here.

Unless otherwise stated, the following applies only to a Cyprus Private Limited Liability Company:

A. Corporate Information

Shares and Corporate Governance

  • Board system : Single tier
  • Minimum number of directors : One
  • Nationality requirements for directors : None, under Company Law.
  • Corporate directors permitted : Yes
  • Minimum number of shareholders : One
  • Nationality restrictions on shareholders : None
  • Company secretary required : Yes. Corporate Company Secretary is permitted. In the case of a sole shareholder owning the Cyprus company, the director and company secretary can be the same person
  • Nationality requirements for secretary : None, but a resident secretary is advisable as annual returns and other documentation are in Greek
  • Currency for accounts and share capital : Any currency for both accounts and share capital
  • Minimum paid up share capital : Nil
  • Tax duty (stamp duty) on issued share capital : 0.6% (but not on share premium)

Registrations/Public Disclosure

  • EU Directives : As Cyprus is a full member of the European Union, all EU Directives are applicable
  • Audited Accounts : Not required by company law for “small companies” – but in effect these are required as a result of tax office requirements
  • Cyprus Registered office : Yes
  • Directors’ Names : Yes (Note : Nominee directors are commonly used)
  • Shareholders’ Names : Only the registered shareholder is disclosed (Note : Nominee shareholders are commonly used, details of the beneficiary are not disclosed to Cyprus government authorities).
  • Ultimate Beneficial Shareholders’ Names : No disclosure to any government authority is required.
  • Ultimate Corporate Parent Shareholder’s Name : Yes, in a note to the Financial Statements.

B. General Information

Cyprus – General Features

  • Basic corporate tax rate : 12,5%
  • Corporate forms : Main corporate forms: Public and Private Companies, limited by shares; companies limited by guarantee; limited and general partnerships
  • Cost level : Low, particularly in comparison with Netherlands, Luxembourg, and even Malta.
  • Currency : Euro
  • Economic stability : Good; during the last ten years, the economy of Cyprus has demonstrated solid growth, and government committed to macro-economic stability and its commitment to low inflation, low interest rates and high growth.
  • Legal system : English Common Law (Cyprus Company Law, Chapter 113, based on the English Companies Act of 1948)
  • Political stability : Very Stable
  • Telecommunications infrastructure : Cyprus has good telecommunication links with the rest of the world. There are good postal and courier services.
  • Memberships : EU, the Commonwealth of Nations (previously known as the British Commonwealth)

C. Government Charges and Fees

Annual Government charges

  • Annual Levy : EUR 350

Transaction Based Government Costs

  • Share transfer duty : Nil
  • Companies Registry Initial Registration Fee : Flat fee of EUR 102 plus 0.6% of the nominal value of the authorised share capital with no upper limit; usually minimised by using low issued capital and high share premium.

D. Formation Procedures for a Cypriot Private Limited Company

  • Name : Name checking can be done online, but formal approval is required before a name can be used.
  • Shelf Companies : Commonly used and immediately available.
  • Formation of New Companies : Memorandum and Articles of Association in Greek are drafted by a Cypriot lawyer, signed by one or more subscribers in duplicate, submitted to the Registrar of Companies.
  • Time span for forming New Companies : 7 to 10 working days

E. Taxation of Cypriot Private Limited Companies

  • Residency : The management & control principle is the sole test of residency for tax purposes see separate memo
  • Company tax rate (flat rate) : 12,5% (among the lowest in the EU)
  • Other : Special contribution for defense at 30% on amount of dividend received – but subject to various exemptions (exemption is usually the case, not the exception).
  • Balance sheet based taxes : None
  • Taxed on : Worldwide (global) basis, the net profits of the company are in principle taxed but capital gains are not taxed (see below)
  • Exempt from tax on : Dividends received under certain conditions
  • Capital gains : Not taxed, unless directly or indirectly earned on the sale of Cypriot real estate
  • Interest withholding tax : Nil
  • Dividend withholding tax : Nil
  • Royalty withholding tax : Nil in most cases
  • Double tax treaties network : Cyprus boasts an extensive network of double tax treaties, currently with almost 50 countries, including countries in North America, Western and Eastern Europe as well as emerging markets such as India and Russia
  • Parent Subsidiary Directive + other EU Directives : Applicable for all EU and EEA countries
  • Capital tax on Issue of Share Capital : 0.6% (not on share premium)
  • Thin capitalisation rules : None
  • Controlled Foreign Corporation rules : None
  • Tax year : Calendar year
  • Advance rulings : Readily available