Cyprus Limited Company
A Cyprus Limited Company is a flexible EU business structure with limited liability, ideal for international setups. Regulated by the Cyprus Companies Law, it permits 100% foreign ownership and provides access to the EU market.
Overview
- Limited liability — Shareholders are liable only up to unpaid shares.
- Requirements: Min 1 shareholder (max 50), 1 director (any nationality),1 Beneficial Owner, 1 company secretary, physical registered office in Cyprus.
- The minimum share capital for a Cyprus incorporation is 1EURO and there is no maximum capital
- Setup: 1–3 weeks timeline after name approval which usually takes 5-7 business days
Use Cases
- Holding companies (0% tax on qualifying foreign dividends/capital gains).
- International trading, services, e-commerce/IT/consulting.
- IP management
- Investment vehicles, asset protection, and EU entry for non-EU residents.
Tax Status
Cyprus is a very good choice for holding and investment companies as they have double tax treaties with over 45 different countries.
Income tax rates vary from around 12.5%
Using Cyprus for an Offshore Company Formation allows you to be free of income tax in the following areas:
- Interest received by individuals
- Dividends
- Profits from the sale of shares
- Income from employment services provided abroad to a non-resident
- 50% of interest income of companies
- Profits of permanent establishments carrying on a trade abroad
Privacy
In accordance with Cyprus regulations, all companies are required to maintain up-to-date Beneficial Owner (UBO) information with the Cyprus Registrar of Companies.
This information is held securely in the government system and is not made public. Access is strictly limited to authorised authorities, such as the Criminal Investigation Department, Auditors, and the Company Secretary.
The UBO details must be confirmed or updated by 19 December each year to keep the company in good standing.
Onboarding
- Pre- approval of the entity name is required from the Registry
- The name must be unique
- Name Approval usually takes around 5-7 business days
KYC Verification Process
To comply with regulations, we are required to collect Due Diligence documents for each director, shareholder and Beneficial owner of the entity
- Certified copy of passport
- Certified Copy of a Utility Bill e.g., Gas / Electrical or Bank Statement (dated within the last 3 months)
- Selfie
- Bank statement to establish source of funds
- Resume
Entity Maintenance
All Cyprus Companies are also required to submit Financial Statements on a yearly basis. It is a legal requirement for a company incorporated in Cyprus to hold at least one annual shareholder meeting.
The Financial Statements and balance sheets are approved during this meeting. The annual meeting can be held anywhere in the world.
Renewal Periods
A Cyprus Company must be renewed on a yearly basis with the registered agent and authorities in Cyprus. Renewing the company allows the company to stay in good standing.
Shutting Down the entity
Depending upon the financial posting of a Cyprus limited Company, the entity can be closed either by voluntary strike off or liquidation. For Voluntary strike off, the company must not have any assets or liabilities and cease operation and submit all outstanding financial statements .Once compliant, an application for strike-off may be submitted, and the Registrar will publish a notice before removing the company from the register. If the company is solvent but requires a formal process, a Members’ Voluntary Liquidation may be initiated through a declaration of solvency and appointment of a licensed liquidator
Updated 2 days ago