Business entities in Cyprus

Business entities in Cyprus

Healy Consultants will assist our Clients with Cyprus company setup. There are several ways of doing business in Cyprus, the most common being the setting up of a limited liability company. Foreign entrepreneurs may also opt to set up a public limited company, or a branch office. LLCs and PLCs in Cyprus are normally good business entities for entrepreneurs who would like to start tax-resident holding companies. If a company is tax resident in Cyprus, it is taxed on worldwide income whereas if the company is not tax resident in Cyprus, it is only subject to tax on income generated in Cyprus.

The Cyprus limited liability company (LLC)

    business entity types in Cyprus
  • The Cyprus LLC requires only 1 director who may also be the sole shareholder and may be of any nationality for the incorporation process to be complete. A company secretary is also required for setting up an LLC in Cyprus. The minimum paid-up capital required is €1;
  • It is not mandatory for a Cyprus LLC to appoint a resident director. However, in order for the LLC to benefit from the 10% corporate tax rate on its worldwide income, the company should have a director who is resident in Cyprus. If required, Healy Consultants will provide these services for our Client;
  • LLCs in Cyprus are not required to submit annual audited financial statements.

The Cyprus public limited company (PLC)

  • A Cyprus PLC is required to appoint a minimum of one director and seven shareholders of any nationality in order to complete the incorporation successfully. The minimum paid-up capital required is a €1 and a company secretary must also be appointed;
  • This business entity must file audited financial statements with the Registrar of Companies within twelve months of the financial year end and therefore must appoint a local Cyprus-approved auditor.

The Cyprus branch of a foreign company (International business branch)

The Cyprus branch is required to appoint at least one corporate agent who should be resident in Cyprus authorized to accept service of any notice on behalf of the company. If the management and control of the business entity is not in Cyprus, which means the company is not tax-resident in Cyprus, the profits of the branch are exempted from all taxes.

Table of comparison between Cyprus entities

 LLCPLCBranch office
Also known asLLCPLCInternational business branch
How long to set the company up?2 weeks3 weeks5 weeks
How long to open company bank account?4 weeks5 weeks6 weeks
Legal liability?LimitedLimitedUnlimited
Wholly foreign owned?YesYesYes
Minimum paid - up share capital?€1€1€1
File annual tax return?YesYesNo
Tax registration certificate required?YesYesNo
Recommended corporate bank account?Standard CharteredHSBCBarclays Bank
Does our Client need to travel?NoNoNo
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum directors allowed?110
Minimum shareholders?171
Tax identification code needed?YesYesNo
Company secretary required?YesYesNo
Corporate agent required?NoNoYes
Corporate shareholders allowed?YesYesYes
Corporate director(s) allowed?YesYesNo
Statutory audit required?NoYesNo
Cyprus corporate tax rate?12.5%12.5%12.5%
Annual financial statements required?YesYesNo
Regulated by?Ministry of Energy, Commerce, Industry and TourismMinistry of Energy, Commerce, Industry and TourismMinistry of Energy, Commerce, Industry and Tourism
Allowed to issue sales invoices?YesYesNo
Allowed to sign contracts?YesYesNo
Allowed to import and export goods?YesYesNo
Can rent an office space in Cyprus?YesYesYes
Can buy Cyprus property?YesYesNo
Total Cyprus business setup costs in yr. 1?€7,535€10,335€9,705
Subsequent annual costs (incl. accounting and tax fee)?€3,400€3,400€3,400
Sample engagement invoice?draft invoice for Cyprusdraft invoice for Cyprusdraft invoice for Cyprus

Frequently asked questions

Contact us

For additional information on our business setup services in Cyprus, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
client relationship officer - Grace
Cyprus chamber of commerce and industry (CCCI) Government web portal of the Republic of Cyprus Cyprus tax department (direct taxation) - Cyprus inland revenue department Cyprus Investment Promotion Agency - invest in Cyprus (CIPA) Cyprus ministry of finance Central bank of Cyprus