Cyprus Company Formation - Business Setup
- Register your Company in Cyprus in 7 days (upon validation of your identification documents).*
- Client confidentiality protection via secured systems.
- Your company and its application for a bank account, including eBanking and credit card. Opening by correspondence.
- A dedicated manager is available throughout the year to administer your company.
Step 1
Complete our application form – Cyprus
Complete our order form and make the payment for your chosen services. You will then be assigned a client manager to assist you through the incorporation process.
Step 2
Upload your documents
Your account manager will ask you for official documents which are required for your company formation. Or use our UBO services.
Step 3
Incorporate your company successfully
Once your documents have been processed your company will be successfully incorporated subject to local authority approval.
Step 4
Your account manager will guide you through the steps of completing your request of additional services such as bank accounts.
Step 5
Manage Your company via our client portal
Our client portal will give you immediate access to all your documents as well as display your company structure.
Corporate Tax in Cyprus
Joining the EU in 2004, Cyprus became one of the most attractive business destinations in Europe.
The tax rate for Cypriot companies is 12.5%, which is one of Europe’s lowest rates. This rate is applied on all profits generated worldwide from a Cypriot company, however, if the company is operated solely as a “Holding Company” (i.e., to hold shares of other companies) it will not be taxed. Furthermore, a uniform 10% corporate tax rate is now levied on all “resident companies”. This new taxation status is residence-based, thus a company is only “resident in the Republic” if its business is centrally managed and controlled in Cyprus. Under these new rules, a resident corporation is taxable on its worldwide income accrued or arising from sources both within and outside Cyprus if it is managed and controlled from Cyprus. Accounting and auditing of a Cyprus Private Company is compulsory every year. To obtain a Cypriot tax identification number, it is required that most directors reside in Cyprus and SFM can provide local directors through its nominee director service.
The following income is not taxable:
- Dividends.
- Profits from the sale of listed securities.
- Interests not from ordinary activities or not directly related to the key activity of the company.
Possible deductions:
- Donations to charity.
- Representation expenses.
- All expenses related to the maintenance of a building.
- Contributions to employers’ social insurance.
Expenses cannot be deducted from:
- Maintenance of motor vehicles.
- Business taxes.
When does the tax return have to be submitted?
- For a company registered prior to the 1st of July (e.g. 22/04/2010), the accounts must be presented to the tax authority before the 31st of December of the following year (31/12/2011) for the preceding year (2010).
- If the company was registered after the 1st of July (e.g. 30/09/2010), the accounts must be submitted to the tax authority before the 31st of December two years after (31/12/2012) for the preceding years (2010 and 2011).
If you have questions regarding the Cyprus tax system please contact us.
Cyprus Offshore Company Formation
Following the Cypriot economic crisis of 2012-2013, Cyprus’ economy is steadily recovering. In 2014, the Cypriot economy continued to exceed expectations due to the resilience of key sectors of its economy, such as financial services, tourism, and business services. In the second quarter of 2015, the Cypriot economy recorded growth for a second consecutive quarter — a significant development that confirms that the economy is well on the road to recovery as well as its positive prospects. In September 2015, Standard & Poor’s Ratings Services raised its rating on Cyprus by one notch saying the country’s economic and budgetary performance has exceeded its expectations.