--- canonical: "https://euincnow.com/company-formation-cyprus" dateModified: "2026-10-11" --- # Company Formation in Cyprus: Types, Taxes and Costs Forming a company in Cyprus takes about eight to twelve working days, or 24 to 48 hours with a ready-made shelf company. The private limited company (Ltd) has no statutory minimum capital and, from 1 January 2026, pays 15% corporate tax (an IP Box can reduce this for qualifying income). It can be set up remotely, but a Cyprus registered office and company secretary are required. ## Cyprus at a glance - Cyprus is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### Company types in Cyprus - Ltd (private limited liability company) The standard Cyprus company under Companies Law Cap. 113: 1 to 50 shareholders, limited liability, with a registered office and a Cyprus-based company secretary. * Company formation in Cyprus: key facts (last reviewed July 2026) - Corporate tax 12.5% up to 31 December 2025, rising to 15% from 1 January 2026 (aligned with the OECD Pillar Two minimum). An IP Box regime can give an effective rate of around 2.5% to 3% on qualifying IP income. - VAT rate Standard VAT is 19%, with reduced rates of 9% and 5%. The VAT registration threshold is around EUR 15,600. - Dividends & payroll taxes Outbound dividends to non-residents are generally not subject to withholding, but exceptions apply to certain corporate recipients in EU-blacklisted or low-tax jurisdictions. The Ministry of Finance’s 2026 guidance lists Special Defence Contribution of 17% and 5% respectively for those cases. Check the recipient, ownership and applicable anti-avoidance conditions before relying on an exemption. Non-domiciled Cyprus residents may qualify for exemption from the defence levy on dividends, subject to the applicable rules. Personal income tax tops at 35%, with employer social insurance around 8.8% plus small funds. - Minimum share capital No statutory minimum share capital; typically around EUR 1,000 is issued in practice. - Setup time About 8 to 12 working days (name approval plus filing). A ready-made shelf company can be transferred in 24 to 48 hours. - Remote setup Yes. Incorporation can be handled remotely with full KYC, but a physical registered office and a Cyprus-based company secretary are mandatory. - Director / residency No legal residency requirement, but a majority of locally resident directors is strongly recommended so that management and control (and therefore tax residency) sits in Cyprus. - Banking options Opening a bank account is a separate step and can take 2 weeks to 3 months; EMIs are often used alongside local banks. * Headline corporate tax rose from 12.5% to 15% on 1 January 2026. English common-law-based company law is used. Outbound-dividend withholding has recipient-specific exceptions. Financial statements need an audit or, where the statutory conditions are met, a review. ## How to register a company in Cyprus - Step by step, this is how a Cyprus formation actually runs: 1. **Reserve the name.** Apply to the Registrar of Companies for name approval, usually a few working days. 2. **Engage a licensed provider.** A Cyprus lawyer or corporate provider drafts the memorandum and articles; a Cyprus registered office and a company secretary are mandatory. 3. **File the incorporation.** The Registrar issues the certificate typically within 8 to 12 working days, with KYC handled remotely. 4. **Register for tax.** Obtain the tax identification code, and VAT registration once past the threshold; tax residency needs management and control in Cyprus. 5. **Open banking.** Local bank onboarding can take weeks to months, so most founders run an EMI account in parallel. ## What company formation in Cyprus costs - Budget EUR 1,000 to 2,000 for a provider-led incorporation including registrar fees, plus around EUR 500 to 1,200 a year for the registered office and secretary. The old EUR 350 annual levy was abolished in 2024. Obtain separate quotes for accounting and the applicable audit or statutory review. A full audit is not mandatory for every small private company; eligibility depends on the financial year, thresholds and statutory exclusions. The provider price ranges are indicative. ## Who can form a company in Cyprus - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Cyprus. The director and residency information above identifies the main formation conditions to review. - Cyprus can fit holding structures, qualifying IP businesses and founders with a practical Cyprus base. Compare the formation, address, accounting and applicable audit or review costs. Confirm tax residence, non-dom eligibility and recipient-specific withholding rules instead of assuming a universal exemption. ## After registration: what Cyprus expects each year - Prepare financial statements and file the annual return (HE32) with the Registrar. Qualifying private companies may use a statutory review instead of a full audit. The route requires both turnover and gross-asset thresholds to be met for at least two consecutive financial years, with group and regulated-entity exclusions. For financial years beginning on or after 6 February 2026, the thresholds are EUR 300,000 net turnover and EUR 500,000 gross assets; the earlier turnover threshold was EUR 200,000. Confirm the applicable financial year and eligibility with the accountant. The corporate tax return and provisional tax payments have separate deadlines. VAT returns are quarterly. ## Cyprus and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Cyprus is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. ### Topics checked - These dates apply to the named topics. Other figures and indicative service prices have separate review needs. * **Statutory review eligibility instead of a full audit** Checked 11 October 2026. [Source 1][1] * **Review thresholds and applicable financial years** Checked 11 October 2026. [Source 1][2] * **Outbound-dividend withholding exceptions** Checked 11 October 2026. [Source 1][3] ### Reference links - [taxsummaries.pwc.com][4] - [savvacyprus.com][5] - [cylii.org][1] - [icpac.org.cy][2] - [gov.cy][3] ## Frequently asked questions ### Can a foreigner open a company in Cyprus? - No legal residency requirement, but a majority of locally resident directors is strongly recommended so that management and control (and therefore tax residency) sits in Cyprus. ### How long does company formation in Cyprus take? - About 8 to 12 working days (name approval plus filing). A ready-made shelf company can be transferred in 24 to 48 hours. ### What corporate tax does a company in Cyprus pay? - The headline summary is 15% (from 2026), with standard VAT of 19%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Cyprus remotely? - Yes. Incorporation can be handled remotely with full KYC, but a physical registered office and a Cyprus-based company secretary are mandatory. ## Source URLs [1]: https://www.cylii.org/document?id=/cy/legis/enop/ind/0_113/section-sc62f3ac5f-d986-1ddb-ccb7-9aab321f2147.html [2]: https://www.icpac.org.cy/selk/en/newDetails.aspx?id=2823 [3]: https://www.gov.cy/mof/en/documents/tax-incentives/ [4]: https://taxsummaries.pwc.com/cyprus/corporate/taxes-on-corporate-income [5]: https://www.savvacyprus.com/cyprus-company-formation/