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Set up your company

Part 1 – Company Formation in Cyprus

Cyprus offers a swift and simplified company formation process, with digital submissions and low administrative fees, making it a practical and attractive option for starting or expanding business activities within the European Union. 1. What you need to know Professional support is required to set up a new company. Official information is provided by the Department of the Registrar of Companies and Intellectual Property. Specifically, theThe procedure must be undertaken and signed  Licensed lawyer in Cyprus. Cyprus Bar Association – Local Bar Associations: https://www.cyprusbarassociation.org/index.php/en/local-bar-associations1  Useful information Business Entities, Company, Company Lifecycle, Starting a Company, Understanding Companies, Seeking Professional Advice – Department of Registrar of Companies and Intellectual Property 2. Basic steps to set up a company 2.1 Company name approval You submit an application online via the Companies and Intellectual Property Registrar Department.
  • Cost: €10 per suggested name,
  • Express procedure: additional €20 per name.
Information Choosing a Company Name – Companies Section, Department of Registrar of Companies and Intellectual Property 2.2 Submission of a Recommendation
  • The solicitor prepares and files the HE1 / HE2 / HE3 forms and the Memorandum & Articles of Association (M&AA).
  • End of electronic recommendation: €165
2.3 Receipt of certificates You receive certificates for: 
  • The establishment of the company
  • The directors
  • To the shareholders
  • The registered address
2.4 Taxation, VAT & Social Insurance You must:
  • obtain a Tax Identification Number (TIC),
  • VAT registrants (where applicable threshold applies),
  • Registering as an employer with the Social Insurance Services.
Links: Tax Registration – Direct Taxation: https://taxforall.mof.gov.cy/ VAT Registration: https://www.businessincyprus.gov.cy/el/doing-business-in-cyprus/start-your-business/register-for-vat/ Social Security Services https://www.mlsi.gov.cy/mlsi/sid/sidv2.nsf/index_gr/index_gr?OpenDocument 2.5 Opening a bank account Required:
  • KYC documents
  • Ultimate Beneficial Owner (UBO) details
  • Business profile
What is required for incorporation To move forward:
  • Shareholders and directors (identity or passport & proof of address),
  • compulsory registered address in Cyprus,
  • company secretary (natural or legal person),
  • No minimum share capital is required (common for startups).
Annual obligations. Each year you need to:
  • submit an Annual Report (HE32)
  • you prepare audited financial statements (IFRS)
  • You pay Social Insurance contributions
  • The annual company fee of €350 has been abolished from 2024.

Part 2 – Startups in Cyprus

Cyprus isis evolving into an important  a hub for technology and innovation in the EU, with attractive incentives for startups and R&D companies. Support Research and Innovation Foundation (RIF) Horizon Europe What is considered a startup Your business is considered a startup if:
  • is based on technology or innovation
  • has potential for growth
  • they are usually under 10 years old
  • can receive a certificate of innovative enterprise
Popular startup sectors FinTech • Gaming • SaaS • Energy / Cleantech • BioTech • Digital / Marketing Tech How to start a start-up
  1. You are setting up a company
Private Limited Company (Ltd) You are following the procedure to establish Unit 1
  1. Tax and social security registration
(same links as above)
  1. Innovative Enterprise Certificate
You are submitting an application via Gov.cy: Innovative Enterprise Certificate Issuance – Gov.cy Apply for an Innovative Enterprises Certificate – Gov.cy The certificate provides significant tax relief for investors up to 50% of taxable income (annual limit)

Part 3: Compliance

You must:
  • submit audited financial statements
  • you submit corporate income tax and VAT returns
  • employer contributions
  • You keep accounting records in accordance with IFRS.
Incentives for start-ups Corporation tax rate
  • Corporate tax rate 15%, one of the lowest in the EU
IP Box
  •  80% exemption Discount on eligible profits derived from the exploitation of intellectual property (IP) rights
  • effective tax rate ~3%
Notional Interest Deduction (NID)
  • tax relief for new equity
R&D tax relief?
  • 20% enhanced tax relief for Research & Development expenditure
Other
  • Tax loss carry-forward for 7 years
  • Abolition of stamp duty on documents from January 1, 2026
Funding & grants
  • Funding Programmes Portal – DG Growth
https://www.fundingprogrammesportal.gov.cy 
  • 33East VC: https://www.33east.vc/
A concise guide to entrepreneurship in Cyprus
  • Business Support Centre (BSC) – who it concerns
It concerns Cypriots and foreign investors who wish to establish or expand a business. https://www.businessincyprus.gov.cy/el/business-support-centre/ Provides:
  • guidance on establishment, licences and taxation,
  • coordination with public authorities,
  • support of strategic investments,
  • Registration of Foreign Interest Companies (FIC) https://www.investcyprus.org.cy/ 
FIC Criteria
  • Physical presence / office in Cyprus
  • foreign shareholders ≥ 50% or Cypriot companies operating in: 
  1. Cypriot shipping companies.
  2. Cypriot high-tech/innovation companies*.
  • 3. Cypriot pharmaceutical companies or Cypriot companies operating in the fields of biogenetics and biotechnology.
  • 4. Cypriot Private Tertiary (Higher) Education Institutions licensed by the Ministry of Education, Sport and Youth.
  • minimum investment €200,000
  • real business activity

Part 4: Useful Links

2. Contact & Support 3. Initial information 4. Planning Your Business 5. Starting your business 5.1. Options & basic procedures 5.2. Taxation & Liabilities 5.3. Protection & special options 6. Licences & regulations 7. Running your business
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