Incorporating a Company in Cyprus
How to set up a Cyprus private company: the steps, what we need from you, your obligations after incorporation and the common pitfalls to avoid.
(A) At a glance
- A private company limited by shares under the Companies Law, Cap. 113 (the "Companies Law") can usually be set up within 1 to 2 weeks with a single shareholder and a single director of any nationality, provided it has a company secretary and a registered office in Cyprus.
| Item | Position |
|---|---|
| Legal form | Private company limited by shares under the Companies Law |
| Shareholders | 1 to 50, not counting employee shareholders, of any nationality; 100% foreign ownership is allowed |
| Directors | At least 1, with no residence requirement |
| Secretary | Required; a sole director can also be the secretary only where the company has a single shareholder |
| Share capital | No legal minimum; €1,000 is common |
| Registered office | Must be in Cyprus |
| Timing | Usually 5–10 working days once the name is approved and the documents are signed |
| Corporate tax | 15% from 1 January 2026 |
(B) The steps
- We handle most of the incorporation process for you once we have your instructions and identification documents, and it runs in the following order.
Approve the name
- We apply online to the Registrar of Companies for 1 or more proposed names, which must end in "Limited" or "Ltd", and an approved name is reserved for 6 months.
Complete client due diligence
- Before acting we verify the identity of the shareholders, directors and beneficial owners and the source of funds, as the Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007 (the "AML Law") requires.
Prepare the memorandum and articles
- We draft the company's constitution to reflect how you want it run, including share classes, transfer restrictions and decision-making, and the subscribers sign it.
File with the Registrar
- We file the memorandum and articles with the statutory declaration of compliance and the details of the registered office, directors and secretary.
Receive the certificates
- The Registrar issues the certificate of incorporation and, on request, certificates of shareholders, directors and secretary, and registered office, together with certified copies of the memorandum and articles.
Complete the post-incorporation registrations
- The company registers with the Tax Department, files its beneficial owners in the UBO Register, opens a bank account and, where needed, registers for VAT and social insurance.
(C) What we need from you
- We can start as soon as we have the following, most of which can be sent electronically without visiting Cyprus:
(a) 2 or 3 proposed company names, in order of preference;
(b) a short description of the business the company will carry on;
(c) for each shareholder, director and beneficial owner, a passport copy and a recent proof of residential address;
(d) for a corporate shareholder, its certificate of incorporation, registers of directors and shareholders, a certificate of good standing and an ownership chart up to the individuals at the top;
(e) the share capital and how the shares are to be divided;
(f) information on the source of funds for the investment; and
(g) whether you will use our registered office and company secretary services or your own.
(D) After incorporation
- A new company has a short list of deadlines in its first months and a regular yearly cycle after that, which our secretarial team can track for you.
| Obligation | When |
|---|---|
| Register with the Tax Department | Within 60 days of incorporation |
| File beneficial owners in the UBO Register | Within 90 days of incorporation; changes within 45 days; confirmation every year between 1 October and 31 December |
| Register for VAT | Within 30 days from the end of the month in which taxable supplies over the past 12 months exceed €15,600, or before the end of any 30-day period in which they are expected to |
| Register as an employer for social insurance | Before the first employee starts |
| Annual return | First made up to 18 months after incorporation, then yearly; filed within 28 days |
| Audited financial statements | Every year, filed with the annual return |
| Provisional tax | 2 instalments, by 31 July and 31 December |
| Corporate tax return | From the 2026 tax year, by 31 January of the second year after the year end (the 2026 return by 31 January 2028) |
| Statutory registers | Members, directors and beneficial owners kept up to date at the registered office |
(E) Common pitfalls
- Most problems we see arise after incorporation rather than during it, and each of them is easy to avoid with a little planning.
Acting as your own secretary
- Where a director or shareholder takes on the secretary's role instead of appointing a professional company secretary, UBO filings, annual returns and the statutory registers and records are often missed or not kept, leaving the company compliant on paper only and exposed to fines.
- A sole director also cannot act as secretary once the company has more than 1 shareholder, under sections 170 and 171 of the Companies Law.
Missed UBO deadline
- Late filing in the UBO Register attracts a fine under the AML Law of €100 plus €50 a day, up to €5,000, and directors can be held liable.
Relying on incorporation alone for tax residence
- Since 1 January 2026, under the Income Tax Law 118(I)/2002 as amended by Law 244(I)/2025, a company is tax resident if it is managed and controlled in Cyprus or incorporated here, unless a double tax treaty provides otherwise.
- Where a treaty applies, residence usually turns on where the company is actually managed, so the board should have a Cyprus-resident majority, meet in Cyprus, and take and record its key decisions here.
Late bank planning
- Local banks can take 1 to 2 months to open an account, so the due diligence file should be ready from the outset.
Standard articles only
- Template articles rarely reflect what the shareholders agreed on exits, deadlock or new investors, which a tailored constitution or a shareholders' agreement should cover.
Out-of-date guides
- The €350 annual levy and the 12.5% tax rate no longer apply, and stamp duty was abolished on 1 January 2026.
(F) FAQs
How long does it take to incorporate a company in Cyprus?
Registration usually takes 5–10 working days once the name is approved and the documents are signed, and the Registrar's fast-track service can shorten this.
Do I need to come to Cyprus?
Incorporation can usually be completed without visiting Cyprus, since documents can be signed abroad and identity checks done remotely, although some banks ask to meet the directors or hold a video call.
Can a non-resident own 100% of the company and be its only director?
The Companies Law sets no nationality or residence condition, so a non-resident can own all the shares and act as sole director, but the company still needs a separate secretary if it has more than 1 shareholder, and a Cyprus-based board supports its tax residence.
What is the minimum share capital?
There is no legal minimum for a private company, and €1,000 is a common starting figure that can be increased later.
Does the company need an office in Cyprus?
The company must have a registered office address in Cyprus, which we can provide, while whether it needs its own premises depends on the business and on the substance it needs for tax and banking purposes.
Is there still an annual government levy?
The €350 annual levy was abolished from 2024 by Law 25(I)/2024, although levies for earlier years remain payable and companies with unpaid levies face strike-off.
What tax will the company pay?
Corporate income tax is 15% on taxable profit from 1 January 2026, and our Cyprus tax guide explains the main exemptions and the position on dividends.
(G) How we can help
Lytras & Associates LLC handles the whole process for you, from name approval and the memorandum and articles to filing, UBO registration, tax registration and bank account support, and can act as the company's registered office and secretary afterwards.
Talk to our corporate team
- Call +357 22 264726
- Email info@lytrasllc.com
We reply within 1 working day.
This guide is general information on Cyprus law as at October 2026 and is not legal advice.