Company Formation - Legarithm

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Launch your company in Cyprus with expert advice. Benefit from EU status, tax advantages, and efficient company registration for both local and international businesses.

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Introduction to Cyprus Company Formation

We are a licensed provider of corporate services in Cyprus. No intermediaries, no hidden fees, just transparent prices and genuine expertise.

Strategic Location

Cyprus stands as one of the most attractive destinations for international business formation in the European Union. Its strategic location at the crossroads of Europe, Asia, and Africa provides easy access to major markets.

Efficient Setup Process

With streamlined company registration processes, English-speaking professionals, and digital-friendly public services, Cyprus makes business setup efficient and straightforward for both local and foreign investors.

EU Membership Benefits

As a full EU member, Cyprus offers the benefits of the single market, advanced legal protections, and an internationally respected regulatory environment.

Business-Friendly Environment

The country’s business-friendly approach, stable economy, and low tax rates make it a top choice for global entrepreneurs, investors, and growing enterprises.

Who uses Cyprus companies?

Whether you are a startup aiming for global reach or an established group optimizing your tax and operational structure, Cyprus offers tailored solutions for nearly every business profile.

Holding Companies

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

Trading and E-Commerce

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

IT, Fintech, and Startups

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

Investment Vehicles

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

Family Offices and Private Clients

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

International Expansion

For consolidation and management of international subsidiaries, benefiting from participation exemptions and tax efficiency.

We build more than just legal solutions — we create a reliable platform for your growth.

Get in touch with our international experts to discuss your corporate structuring, licensing, or compliance needs today. Our team is ready to assist you quickly and efficiently.

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Low Corporate Tax Rate

Cyprus offers one of the lowest corporate income tax rates
in the European Union at 12.5%.
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Double Taxation Treaties

The country has signed over 60 double tax treaties, minimizing the risk of being taxed twice on the same income.
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No Withholding Taxes

Dividends, interest, and royalties paid to non-residents are generally not subject to withholding tax (with limited exceptions).
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EU Market Access

As an EU member, Cyprus allows your business to benefit from free movement of goods, services, and capital within the EU.
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Intellectual Property Incentives

The IP Box regime reduces effective tax rates on qualifying IP income to as low as 2.5%.
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Simple Compliance

Company registration and ongoing compliance requirements are streamlined, transparent, and supported by experienced legal professionals
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Multilingual, Skilled Workforce

Cyprus boasts a highly educated, multilingual workforce, with English widely spoken in business and legal settings.
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Remote Setup

You can incorporate and manage your Cyprus company without a mandatory visit—everything can be handled digitally.

Step 01

Company Name Approval

We submit your chosen company name to the Cyprus Registrar of Companies for approval. The name must be unique and not conflict with existing entities. Names containing regulated words (such as “bank,” “insurance,” or “trust”) require special permission.
Step 02

Drafting the Memorandum and Articles of Association

We will draft the company’s Memorandum and Articles of Association — these documents define the company’s activities, governance, and share structure.
Step 03

Appointing Directors, Secretary, and Shareholders
- Establish a suitable business entity (often an IBC in Anjouan, but foreign entities are also accepted if compliant).
- Collect and prepare all personal and corporate documents detailed above.
Step 04

Preparing and Submitting Incorporation Forms
The main incorporation forms are:
- HE1 (Declaration of compliance, signed by a lawyer)
- HE2 (Registered office address notice)
- HE3 (Details of directors and secretary)

KYC and Due Diligence Requirements

Cyprus adheres to strict anti-money laundering (AML) standards. All company stakeholders must provide identification and background information to ensure legal transparency. This process is mandatory and helps maintain Cyprus’s reputation as a reputable business hub.

For Individuals:

Valid passport (certified copy)
Proof of address (utility bill, bank statement, or official letter, dated within last 3 months)
Curriculum Vitae (CV) or LinkedIn profile
Professional or bank reference letter (recent)

For Corporate Shareholders:

Certificate of Incorporation
Memorandum and Articles of Association
Extract from corporate registry (showing current status)
Proof of UBOs (Ultimate Beneficial Owners) and theiridentity/address
Certified translations where required

*We will advise you through collecting and certifying these documents. All information is handled securely and in compliance with data protection laws.

Smart Package

1 699 EUR

Approval of the company name
Payment of all state fees for registration (HE1, HE2, HE4) Preparation and submission of standard M&AA in Greek
Compliance for one person in the company structure Registered office address for one year
Secretary for one year 1-hour
Introductory consultation before company registration Obtaining a tax number

Standard Package

2 749 EUR

M&AA in English
Package of 4 key certificates with apostille
Apostilled copy of M&AA in two languages
Assistance in opening accounts with Wise
1-hour consultation after company registration
Plus all Smart Package services

Premium Package

4 999 EUR

Expedited company registration and certificate issuance
10 hours of legal consultations on any matters per year
Plus all Standard Package services

Nominee Director: 1 599 EUR
VAT Registration: 749 EUR
VIES Registration: 149 EUR
Shareholders' certificate: 200 EUR

Certificate of directors: 200 EUR
Certificate of incorporation: 200 EUR
Certificate of Good Standing: 200 EUR
Certificate of registered address: 200 EUR

Timelines

New Approval

2-3 business days (may be faster for pre-approved “shelf” names)

Document Preparation & Submission

2-4 business days (if all KYC documents are ready)

Registrar Approval & Certificate Issuance

5-7 business days (standard) or as fast as 2-3 days (with expedited service)

Bank Account Opening

2-6 weeks (depends on the bank and due diligence requirements)

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Bank Account Opening

Opening a corporate bank account in Cyprus is essential for running your business. The country’s reliable banking sector offers a full range of business services.

Local Banks: Cyprus-based banks (such as Bank of Cyprus, Hellenic Bank, Astrobank) are well known for their reliability, SEPA payment access, and English-language support.
International Banks: Companies may also open accounts in other EU or global jurisdictions, depending on business needs.

Post-Incorporation Compliance

After your company is registered, ongoing compliance ensures your business stays in good standing and avoids unnecessary penalties.

Statutory Records:

Maintain company registers (directors, shareholders, UBOs)
Keep minutes of annual general meetings (AGMs) and board meetings
Ensure timely filing of any changes with the Registrar (change of address, directors, shareholders, etc.)

Deadlines and Reminders:

Annual returns and financial statements must be filed within defined periods after each financial year-end
Automatic reminders can be set up via Legarithm’s digital platform to ensure no deadlines are missed

Key Post-Incorporation Duties:

Tax Registration: Obtain a Tax Identification Number (TIN) with the Cyprus Tax Department.

VAT Registration: Mandatory if your turnover exceeds €15,600/year.

Social Insurance Registration: Required if employing staff, with regular contributions.

Accounting and Audit:

Maintain accurate accounting records
Prepare and file annual financial statements (audit required for all companies, regardless of size)
Submit annual tax returns
Pay corporate income tax and other statutory obligations on time

Taxation Facts for Cyprus Companies

Cyprus is recognized for its tax efficiency and clear, investor-friendly rules.

Corporate Income Tax:

12.5% on worldwide income for tax-resident companies (managed and controlled from Cyprus).

No Capital Gains Tax:

No capital gains tax on the sale of shares (unless the company owns Cyprus immovable property).

Double Tax Relief:

Wide network of tax treaties, with credit for foreign taxes even if no treaty exists.

Social Insurance:

Employer and employee contributions required if hiring staff.

Loss Carry-Forward:

Tax losses can be carried forward for five years.

No Tax on Foreign Dividends:

Dividends from foreign subsidiaries are generally exempt from Cyprus tax.

No Withholding Tax:

No withholding tax on dividends, interest, or royalties paid to non-residents (except for royalties on rights used in Cyprus).

VAT Registration:

Required if turnover exceeds €15,600/year; standard rate 19% with reduced rates for specific goods/services.

No Inheritance Tax

Cyprus does not impose inheritance or estate tax, allowing assets to pass to heirs without additional taxation.

Transfer Pricing and Substance:

Cyprus applies OECD standards and requires transfer pricing documentation for related-party transactions.

Nominee and Confidentiality Services

Many clients choose Cyprus for its flexible privacy options. Nominee services are fully legal and can enhance confidentiality while keeping real control with the beneficial owner.

Holding Companies

Nominee Directors/Shareholders: Appointed on the public record, but all legal and economic rights remain with the beneficial owner through legal agreements
Nominee Secretary: Optional service for further privacy and local representation.

Legal Framework

All nominee arrangements are governed by robust legal agreements prepared in line with Cyprus law.
Ultimate control, decision-making, and ownership always remain with the beneficial owner.

Confidentiality

Details of beneficial owners are disclosed to the authorities in a secure registry (not public), ensuring compliance with EU regulations while safeguarding privacy from third parties.
Legarithm ensures strict confidentiality of client data and provides only the transparency required by law.

From 1 to 3 Days

That’s how long it will take for your business to start generating profits when you start right now with the Legarithm team.

*Depending on the chosen structure, zone, and readiness of the founders’ documents.

Legal Expertise for Cyprus Residency & Business

Explore flexible programs for investors, business owners, and professionals, including non-domicile status, permanent residency, and business facilitation.

Non-Domicile Status

Exemption from tax on dividends and interest income for up to 17 years
Enjoy worldwide passive income tax-free in Cyprus
Ideal for business owners and investors
Fast-track process – usually 2–4 weeks
No requirement to physically reside in Cyprus for the whole year

Residency by Investment

Permanent residency for non-EU nationals
Investment options available:
- Real estate purchase
- Investment in a Cyprus company
Fast-track approval – usually 2–6 months
Family members included in the application
Pathway to citizenship after 7 years of residency or less

BFU Status (Business Facilitation Unit)

Company registration through a dedicated government unit
Simplified work and residency permits for foreign employees
Ability to bring in highly skilled professionals
Family relocation support for key employees
Priority processing for tech, fintech, and innovative businesses

Popular Business Sectors in Cyprus

Cyprus attracts diverse industries. The following sectors are active and benefit from tailored incentives and a supportive business environment.

Holding and Investment Companies

Cyprus’s participation exemption, absence of withholding taxes, and treaty network make it a prime location for holding international assets.

Shipping and Maritime

Cyprus is a global shipping hub with a leading ship registry and specialized tax advantages for maritime businesses.

Real Estate and Tourism

Strong demand from international buyers and investors, supported by residency incentives.

Gaming and Blockchain

The island offers an evolving regulatory framework for online gaming, crypto, and blockchain ventures.

Technology and Fintech

Global tech companies, software development, payment service providers, and fintech startups thrive under the IP box regime and pro-innovation policies.

Trading, E-Commerce, and Logistics

EU market access, SEPA banking, and efficient customs make Cyprus a favorite for cross-border commerce.

Professional and Financial Services

Accounting, legal, consulting, and fund administration firms serve global clients from a robust local base.

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Frequently Asked Questions

Who can own a Cyprus company?

Any individual or legal entity—regardless of nationality—can own 100% of a Cyprus company. There are no local shareholder requirements for private companies.

Is it necessary to visit Cyprus to form a company?

No, the entire process can be completed remotely. All documents can be signed and submitted digitally, and couriered as required.

How long does company registration take?

With all documents ready, standard incorporation is completed in 7–14 business days. Expedited services are available for urgent cases.

Can I open a bank account remotely?

Yes, most banks allow for remote account opening, though some may require a video call or in-person visit depending on risk assessment.

What ongoing compliance is required?

You must maintain statutory records, file annual returns, prepare and audit financial statements, and keep your KYC details up to date.

Are nominee directors/shareholders legal?

Yes, nominee services are permitted and widely used. All arrangements comply with Cyprus law and EU standards for transparency and AML.

Is Cyprus a “blacklisted” jurisdiction?

No, Cyprus is an EU member state and fully compliant with international standards. It is not on any major tax haven or non-cooperative jurisdiction lists.

Can I relocate to Cyprus as a business owner?

Yes, several residency and work permit options are available for business owners, key staff, and their families, including the Golden Visa.

What support does Legarithm offer after incorporation?

We provide full compliance monitoring, legal and tax support, annual filings, audit coordination, banking introductions, and ongoing business advice. If you have more questions, our team is always available for a confidential consultation.

Section	Requirements / Features
Directors	Minimum 1 (individual or corporate, any nationality)
Shareholders	Minimum 1, maximum 50 for private companies (individual or corporate)
Company Secretary	Required (can be a person or corporate body)
Registered Office	Must be located in Cyprus
Share Capital (Private)	No minimum share capital required (often set at €1,000 dividedint to 1,000 shares of €1 each for flexibility)
Share Capital (Public)	Minimum €25,629 share capital
Beneficial Ownership	Disclosure to the national register, not public, but available to authorities for compliance
Director/Shareholder Residency	Permitted for privacy, with full legal control retained by beneficial owners

*For optimal tax residency and treaty benefits, it is common to appoint at least one Cyprus-resident director.

Offices map

Estonia

Ukraine

Cyprus

UAE

United States

Cyprus, Limassol

Franklinou Rousvelt, 170 Limassol Chamber, 3048, Limassol, Cyprus

Estonia, Tallinn

Harju maakond, Tallinn, Kesklinna linnaosa, Tuukri tn 19-315, 10152

UAE, Dubai

Building A1, Dubai Digital Park, Dubai Silicon Oasis, Dubai, United Arab Emirates

Ukraine, Kiyv

Kyiv, Azov Regiment Heroes Street 12, 04212

United States, New York

228 Park Ave S, New York City, New York, 10003, United States

Why Choose Legarithm?

Choose Legarithm for a truly smooth, efficient, and future-proof business setup in Cyprus.

Comprehensive Expertise

Our lawyers and corporate advisors have decades of experience in Cyprus company formation, cross-border structuring, and ongoing compliance.

End-to-End Service

From initial consultation to full operational readiness, Legarithm handles every stage—name selection, legal drafting, banking, licensing, residency, and more.

Digital Convenience

Our digital client portal allows you to manage your company, upload documents, and track progress online, anywhere, anytime.

Compliance Assurance

We prioritize compliance and transparency, ensuring your structure meets all Cyprus, EU, and international standards.

Local Network

Strong relationships with Cyprus banks, regulators, and service providers mean faster, smoother processes and more business opportunities for you.

Personalized Support & Confidentiality

Every client receives dedicated, responsive support—no automated bots, just real legal and business experts ready to help you grow, with sensitive information handled in strict confidence.

Get in Touch

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Get in Touch

Leave your inquiry, and our legal team will get back to you as soon as possible. Initial consultation is free of charge and confidential.

Or contact us directly on:

Full Name

Email Address

Phone Number

Topic of Request

Select a topic

Select a topic

Company Formation

Accounting Support

Crypto Licenses

Citizenship and Immigration

Partnership

Other

Message / Details

I agree with the Privacy Policy and consent to data processing.

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