How to open a company in Cyprus with full legal support

Cyprus has long been a popular choice for entrepreneurs due to the combination of favorable conditions for doing business and convenient infrastructure. Here are the key advantages of the state:

1. Low taxes. one of the lowest tax rates in Europe - the profit tax is only 12.5%. This allows you to optimize tax expenses and direct more funds to business development.

2. Remote management. Most of the procedures related to registering and managing a company can be carried out remotely. This is especially convenient for entrepreneurs from Ukraine who do not need to visit Cyprus.

3. Low maintenance costs. Maintaining a company in Cyprus is significantly cheaper compared to other European countries. This includes legal support, accounting services and annual registration fees.

4. The ability to download a mobile application in the App Store and Google Play. Registering a company in Cyprus provides conditions for downloading paid mobile applications to popular app and game stores.

5. Working with foreign payments. It is easy for a company in Cyprus to set up the acceptance of foreign payments and work with foreign services such as PayPal, Stripe or international banking platforms. This makes it possible to effectively serve customers around the world.

6. Access to the EU market. Cyprus is a member of the European Union, which gives businesses access to all European countries. This simplifies trade, logistics and cooperation with European partners.

7. Cyprus tax system for business

8. The Cyprus tax system is considered one of the most attractive in Europe due to its simplicity and low rates. The main corporate income tax is only 12.5%.

At the same time, companies have access to various benefits: income from dividends, capital gains from the sale of shares and securities, as well as some types of international income can be completely exempt from taxation.

An additional advantage is the absence of capital gains tax on the sale of assets outside of Cyprus and the absence of tax on income from intellectual property registered on the island.

VAT in Cyprus is 19%, but even these taxes can be avoided if the company does not provide services in Cyprus and trades outside or with non-EU countries.

Forms of business in Cyprus

Cyprus offers various forms of business, including Private Limited Company (LTD), Public Limited Company (PLC), partnerships and sole proprietorships. Among them, LTD is the most popular due to its versatility, shareholder protection and ease of management. Its registration requires at least one director, at least one shareholder of any resident status, a licensed local secretary.

To operate in the form of a limited liability company (LTD), the authorized capital is valid from 1000 euros, but it does not need to be paid. The number of shareholders can be any, from 1 to 50 people (or legal entities).

The process of registering a company in Cyprus

Opening a company in Cyprus is a process that includes several stages. Each of them is important to ensure a legal and successful start of the business.

1. Choose a company form

The first step is to determine the legal form. The most popular form is Private Limited Company (LTD), which is suitable for most types of business. However, depending on the company's goals, other forms can be chosen.

2. Choose a name

The company name must be unique and meet the requirements of the Cyprus Registry of Companies. You can check the availability of the name through an online request at the Department of the Registrar of Companies. The name must include an indication of the company form, for example, "LTD". once the name is approved, it is reserved for further registration.

3. Prepare documents

For registration, you will need a set of documents:

• Internal passport,
• International passport,
• Confirmation of registration address or actual residence (utility bills, bank statements, letters from government agencies).

At the same time, you need to obtain a license (if your type of activity requires it), then register with the Cyprus tax authority, translate into English and apostille all corporate documents), make a seal.

4. Open a business account

After registration, you need to open a corporate bank account for the company. This will require a certificate of registration of a legal entity and confirmation of the identity of shareholders and directors. A bank account is required for financial activities, receiving income and paying taxes. In order not to visit a Cyprus bank in person, you can open an account remotely in online banks (Payoneer, Skrill, Wise, etc.).