Company formation in Cyprus

At a glance

Entity

Private company limited by shares (Ltd)

Corporate tax

15% on worldwide profits (raised from 12.5% on 1 January 2026 to meet the OECD Pillar Two minimum); IP-box regime gives an effective 2.5% on qualifying income, and non-dom shareholders draw dividends free of the 5% SDC. As of 2026.

Incorporation time

~1–2 weeks (name approval 1–2 days; ~5–7 working days at the Registrar thereafter)

Minimum capital

None mandated (EUR 1 nominal; typically EUR 1,000 issued)

Resident director

Not legally required, but a Cyprus-resident board majority is needed for management-and-control tax residence and treaty access

Audit

Mandatory for every company; from 6 February 2026 the smallest (turnover below EUR 300,000 and gross assets below EUR 500,000 for two years) may file a lighter ISRE 2400 review engagement instead of a full audit

Remote set-up

Yes, fully remote — a licensed Cyprus lawyer incorporates under power of attorney

Government fee

EUR 165 (Registrar of Companies incorporation fee, forms HE1/2/3; no capital duty). As of 2026.

Best for

An EU holding, IP or trading company with wide treaty access, suited to non-dom shareholders.

The process

1. Reserve the company name with the Registrar of Companies (approval in 1–2 days)
2. A licensed Cyprus lawyer drafts the Memorandum & Articles and the HE1/HE2/HE3 forms, signed remotely by power of attorney
3. File the incorporation application; the Certificate of Incorporation and statutory certificates issue in ~5–7 working days
4. Register with the Tax Department for a Tax Identification Code and, where turnover requires, for VAT (19%)
5. Open a corporate bank or EMI account — the slowest step, subject to extensive KYC