Company registration in Cyprus

Cyprus company formation is a popular option for businesses due to its favorable tax regime, simple registration procedure and access to EU markets. The most common form is the Private Limited Company (Ltd), which limits the liability of the owners and is suitable for international business. First, a unique company name is chosen and a request is submitted to the Registrar of Companies, after which the necessary documents are prepared, including the company’s articles of association and details of the founders and directors, as well as a legal address in Cyprus. After that, the company is registered with state authorities, receives a tax number and, if necessary, is registered with the social security system if it plans to hire employees. To conduct business, it is mandatory to open a corporate bank account in Cyprus, where the authorized capital is deposited. In the case of conducting regulated activities, such as finance or gambling, the company receives the necessary licenses from the relevant authorities. The advantages of opening a company in Cyprus include a low corporate tax rate of 12.5%, no dividend tax for non-residents in most cases, stable legislation and transparent business rules. Among the limitations, it is worth considering the need for a local legal address, thorough banking procedures through KYC/AML checks and the obligation to maintain accounting records and submit annual financial statements.