Why should I open a Limited company in Cyprus?
It is a popular option for foreign businesses due to its favorable tax regime and business-friendly environment. To establish a this, certain prerequisites must be met, such as registering a unique company name with the Registrar of Companies. Once established, the company is subject to corporate income tax on its worldwide income at a flat rate of 12.5%, which is one of the lowest rates in Europe. Additionally, Cyprus has double tax treaties with more than 60 countries, making it an attractive location for international business activities.
Before opening a company in Cyprus, you need to decide which kind of company structure you would like to have.
Among other structures, the most beneficial in combination with the Non-Dom Status (see section “Non-Dom Status and Taxes”) is clearly the foundation of a Limited company in Cyprus, in short LTD.
What is a Limited company in Cyprus?
A Limited company in Cyprus is a company with limited liability, founded by one or more partners (maximum 50 partners).
Each founder of the Limited company can be shareholder, director and secretary of the company, as per the law.
This means that shareholders are only liable for the company’s debts and obligations to the extent of the nominal value of their shares. The company cannot obligate shareholders to pay its debts with their personal funds.
What is needed to open a Limited company in Cyprus?
Opening a limited company in Cyprus requires meeting certain prerequisites, such as applying for a unique company name with the Registrar of Companies. This helps ensure that no other companies are using the same name. The process of obtaining a company name typically takes up to three days.
- The majority of directors need to be Cyprus tax residents. In order to be a Cyprus tax resident, the Yellow Slip (see section “How to immigrate to Cyprus”) and the 60-days tax rule are needed .
- You need to fill out the application documents accurately and have a Cypriot lawyer sign them. These documents must include information about the director, shareholders, and the business purpose of the company.
- The authorities will copy and check your valid personal identification documents, such as an ID card or passport.
- However, other than in other European countries, there is NO requirement to have a specific share capital for your Limited company foundation, meaning that you can start your company with having 1 Euro in your company bank account.
How do I open a Limited company in Cyprus?
- To open a Limited company in Cyprus, you need to fulfill the above mentioned prerequisites and to apply for the company registration at the Cypriot governmental authorities (registrar of companies).
- We are happy to support you during the process which takes our lawyers up to 8-10 working days.
We have extensive experience in supporting our clients throughout the company formation process and are pleased to offer high-quality services at competitive prices. Feel free to contact us for additional information and consultation.