Registration of a company (LLC) in Cyprus

Registering a company in Cyprus has become a popular choice for many entrepreneurs who want to develop their businesses and take advantage of this island.

The main legislative act regulating the activities of enterprises in Cyprus (company registration in Cyprus) is the Law “On Companies” in its current version.

Registration of enterprises in Cyprus is carried out using the following organizational and legal forms:

• Private company limited by shares – closed type limited liability company;
• Public company limited by shares – an open-type limited liability company;
• Exempt private company – a closed type company, exempt from taxation;
• Company limited by guarantee – a company with the liability of participants within the guaranteed amount;
• Partnership – partnership;
• Trust – trust.

The most common and optimal organizational and legal form for conducting business is a Private company limited by shares – an analog of a Ukrainian LLC.

Before considering the process of registering a company in Cyprus, let’s consider some of the advantages that this country provides for entrepreneurs:

• Tax regime: Cyprus is known for its tax policy, which provides for low tax rates on corporate profits and dividends. This makes Cyprus one of the most attractive countries for business in Europe.
• European Union: Cyprus is a member of the European Union, which provides access to the European single market and facilitates international trade.
• Simplified registration procedure: Cyprus offers a fast and efficient company registration procedure, which attracts entrepreneurs from all over the world.
• Stability and trust: Cyprus is known for its political and economic stability, making it a reliable place to do business.
• Possibility of double taxation: Cyprus has a wide network of tax treaties with other countries, which allows companies to avoid double taxation.

Before registering a company in Cyprus, it is important to understand the legal aspects of the process.

Below are the key legal aspects to consider:

Choice of the legal form of the company

The choice of company form depends on your activity and business model.

Registration of the company name

Before registering your company, you need to choose a unique name for your company. The name must be unique and not similar to other registered names in Cyprus.

Registration at the Registrar’s Chamber

Companies in Cyprus must be registered with the Registrar of Companies and Official Receiver. This organization is responsible for the registration and administration of companies.

Contribution of authorized capital

You must contribute authorized capital that meets the requirements for your type of company. The authorized capital can be divided into shares or other shares in the company. Companies are usually registered with a registered capital of 2,000 euros.

Registration for taxes

After registering the company, you will need to register it for taxes. This includes obtaining a tax number and fulfilling tax obligations.

Opening a bank account

To conduct financial activities, your company must open a bank account in Cyprus. It will help you manage your finances and conduct transactions.

In Cyprus, there are some important tax aspects that should be taken into account by entrepreneurs registering companies:

• Corporate Income Tax: Cyprus offers one of the lowest corporate income tax rates in the European Union at 12.5%. This rate makes Cyprus an attractive location for companies looking to minimize their tax costs.
• Tax on dividends: Dividends received from foreign companies may be exempt from taxation in Cyprus. This makes Cyprus attractive for structures with foreign investments.
• Tax on dividends: Dividends received from foreign companies may be exempt from taxation in Cyprus. This makes Cyprus attractive for structures with foreign investments.
• Withholding tax on income: Cyprus has an extensive network of tax treaties that reduce the tax burden on income from foreign sources.
• Value Added Tax (VAT): Cyprus also has a VAT system which is levied on goods and services. Entrepreneurs must register their company for VAT if their volume of operations falls under mandatory registration.

Therefore, registering a company in Cyprus is an attractive opportunity for entrepreneurs who want to expand their business and use the advantages of this country. Cyprus offers a favorable tax regime, access to the single European market, and a stable business environment.

It is important to comply with all registration requirements and regulations, as well as to keep correct financial records and comply with tax laws in order to successfully conduct business in Cyprus.