Quick answer
To set up a private limited company (Ltd) in Cyprus you get the name approved by the Registrar of Companies, have a Cyprus lawyer prepare the Memorandum and Articles of Association, and file forms HE1, HE2 and HE3 with a Cyprus registered office, at least one director and a company secretary. Registrar fees start at about €175 (€10 for the name and €165 for registration), plus certificates and the lawyer's fee, and the company is usually registered within one to three weeks. Afterwards it needs a tax number, its beneficial owners recorded in the UBO register within 90 days, and VAT and social insurance registration when they apply.
- A Cyprus Ltd needs one shareholder, one director, a company secretary and a registered office address in Cyprus; there is no minimum share capital for a private company.
- Only a lawyer licensed by the Cyprus Bar Association can prepare and sign the Memorandum and Articles and the HE1 form.
- Registrar fees: €10 per name (€30 express), €165 to register a company with share capital up to €1,000 (€100 extra for express), and about €120–€130 for certificates.
- Beneficial owners must be entered in the UBO register within 90 days of incorporation and confirmed every year between 1 October and 31 December.
- Since 1 January 2026 company profits are taxed at 15%, and every company incorporated in Cyprus is treated as Cyprus tax resident unless a tax treaty says otherwise.
Cyprus is one of the simplest places in the EU to open a company: the paperwork is short, there is no minimum capital for a private company and the whole process is handled in English. What takes time is everything around it, from choosing the right structure to opening the bank account. This guide walks through each step in order, with the official fees and the deadlines that follow once the company exists.
Good to know: what changed in 2026. Under the tax reform, company profits are taxed at 15% (up from 12.5%), dividends paid to Cyprus-domiciled residents carry 5% defence contribution instead of 17%, deemed dividend distribution no longer applies to new profits and stamp duty has been abolished. Every company incorporated in Cyprus is now treated as Cyprus tax resident, unless a tax treaty makes it resident elsewhere. Our 2026 tax reform explainer covers the personal side.
Is a limited company the right choice?
Before you start, check that you need a company at all. Many freelancers and small businesses start as self-employed (a sole trader), which costs almost nothing to set up and has lighter paperwork. A company makes more sense once profits grow, when you want to protect personal assets, take on partners or employ people. We compare the two, with worked numbers, in sole trader or limited company in Cyprus.
| Self-employed (sole trader) | Private limited company (Ltd) | |
|---|---|---|
| Set-up cost | Close to nothing | About €1,100–€4,000 with lawyer |
| Liability | Personal and unlimited | Limited to the company |
| Tax on profit | Personal income tax, 0% to 35% | 15% corporate tax, then tax on what you take out |
| Yearly accounts | Audit only above €70,000 turnover | Audit (or review) every year |
| Running costs | Low | Accountant, auditor, annual return |
What does a Cyprus Ltd need?
At least one shareholder
A person or a company, of any nationality and living anywhere. A private company can have up to 50 shareholders.
At least one director
Directors do not have to live in Cyprus. For the company to be clearly managed and controlled here, and to open a bank account smoothly, most advisers recommend that the director (or the majority of the board) lives in Cyprus and that board meetings are held here.
A company secretary
Every company needs one. It can be a person or a corporate services firm, and many lawyers offer this as part of their package.
A registered office in Cyprus
A real address in Cyprus where official letters are delivered; a PO Box is not accepted. It appears on the public register, so some owners use their lawyer's or accountant's address instead of their home.
Share capital
There is no legal minimum for a private company. Many owners choose €1,000, because the Registrar's fee rises with the amount of authorised capital above that.
Step by step: registering your company
1. Choose a lawyer
Only a lawyer licensed by the Cyprus Bar Association can prepare and sign the Memorandum and Articles of Association and the HE1 declaration, so this is your first call. Ask for a written quote that lists what is included: name approval, drafting, filing, the company secretary, the registered office for the first year and help with the bank account. The lawyer will also carry out identity checks on every shareholder, director and beneficial owner.
2. Get the company name approved
Your lawyer applies to the Department of the Registrar of Companies with your preferred names; you can list more than one in case the first is taken. Names that are identical or too close to an existing company are refused, and words such as "bank" or "insurance" need special permission. The fee is €10 per name, or €30 for the express service. Approval normally takes about a week.
3. Prepare the documents
Once the name is approved, the lawyer drafts:
- the Memorandum of Association (name, objects and share capital) and the Articles of Association (how the company is run: meetings, voting, dividends, share transfers);
- form HE1, the declaration of compliance signed by the lawyer;
- form HE2, the registered office address;
- form HE3, the directors and company secretary.
You will usually sign the Memorandum and Articles as the first shareholder(s) and provide certified passport copies, proof of address and, for owners from abroad, a bank or professional reference.
4. File and pay the Registrar
The lawyer files everything with the Registrar of Companies. The registration fee is €165 for a company with share capital up to €1,000, with €100 extra for express handling. Registration normally takes about a week, or a few working days on the express service.
5. Receive your certificates
When the company is registered you receive a certificate of incorporation and its registration number, which starts with HE. You will also want certificates of the directors and secretary, the shareholders and the registered office, which banks always ask for. These cost roughly €120–€130 as a set, with an express option.
How much does it cost?
| Item | Typical cost |
|---|---|
| Name approval | €10 (€30 express) |
| Registration (share capital up to €1,000) | €165 (+€100 express) |
| Certificates of the company | About €120–€130 |
| Lawyer (drafting, filing, checks) | About €900–€3,500 |
| Company secretary and registered office | Often included in the first year, then a yearly fee |
| Usual total to get started | About €1,100–€4,000 |
Government fees are those published by the Registrar and quoted by Cyprus law firms in 2026; lawyers' fees vary widely, so compare at least two quotes.
After registration: the steps that follow
The certificate of incorporation is only the start. These registrations come next.
| Step | Where | When |
|---|---|---|
| Company tax number (TIN) | Tax Department, online through Tax For All | Straight away; you need it for the bank and invoices |
| Beneficial owners (UBO register) | Registrar of Companies, online | Within 90 days of incorporation |
| VAT | Tax Department | Within 30 days of passing €15,600 of taxable turnover in 12 months (or earlier, voluntarily) |
| Employer registration | Social Insurance Services | Before your first employee starts, including a salaried director |
| Bank account | A Cyprus or EU bank or payment institution | As soon as you have the certificates |
Tax number
The company is registered for tax online through the Tax For All portal, the same system individuals use (see our TIN guide). Your accountant usually handles it.
UBO register
The company must record its ultimate beneficial owners (the people who own or control 25% or more, directly or indirectly) within 90 days of incorporation, report any change within 45 days, and confirm the details every year between 1 October and 31 December, even when nothing has changed. Fines start at €100 and rise by €50 a day, up to €5,000.
VAT
Registration is compulsory once taxable turnover passes €15,600 in any 12 months, or when you expect to pass it within the next 30 days. The standard rate is 19%. Talk to your accountant early if you will sell services to businesses in other EU countries or buy services from abroad, as these can bring separate VAT obligations.
Social insurance and payroll
If the company pays anyone, including you as a salaried director, it must register as an employer before the first payment. In 2026 the employer pays 8.8% social insurance plus 1.2% to the Redundancy Fund, 0.5% to the Human Resource Development Fund, 2% to the Social Cohesion Fund and 2.9% for GESY, and the employee pays 8.8% plus 2.65% GESY, on salaries up to €68,904 a year. New staff must be declared online through the ERGANI system before they start. See our guide to social insurance numbers.
Bank account
Expect this to be the slowest part. Banks ask for the company certificates, the Memorandum and Articles, ID and proof of address for directors and owners, a short business plan and details of expected clients and payments. Approval can take from a few days to several weeks. Many new companies also open an account with an EU payment institution while they wait.
Taxes in brief
| Tax | 2026 rate |
|---|---|
| Corporate income tax | 15% of taxable profit |
| Dividends to a Cyprus-domiciled resident | 5% defence contribution (on profits from 2026) plus 2.65% GESY |
| Dividends to a non-domiciled resident | No defence contribution; 2.65% GESY |
| Dividends to non-residents | Generally 0% (higher rates apply for certain low-tax and blacklisted countries) |
| VAT | 19% standard rate, above €15,600 turnover |
| Stamp duty | Abolished from 1 January 2026 |
Tax losses can now be carried forward for seven years instead of five. Non-dom status can be very valuable for company owners; read our non-dom guide to see if you qualify.
Moving from outside the EU?
EU citizens can live in Cyprus and run their company freely. For most non-EU nationals, owning a company is not enough to live or work here: you need a residence and work permit. The usual routes are a permit through a qualifying foreign-interest company, the digital nomad visa if your clients are outside Cyprus, or a startup visa. Start with our guide to work permits for non-EU citizens and the digital nomad visa.
Common mistakes to avoid
- Choosing a structure only for the tax rate: the yearly audit, accountant and payroll costs can outweigh the savings for a small business.
- A director abroad with no local presence: it can make banking harder and raise questions about where the company is managed.
- Forgetting the UBO deadline: 90 days goes quickly while you wait for the bank.
- Mixing personal and company money: pay yourself a salary or dividends properly and keep receipts for every expense.
- No accountant from day one: books, VAT and provisional tax start immediately, not at the end of the first year.
What to do next
- Decide between self-employed and a limited company.
- Get quotes from two or three lawyers and agree what is included.
- Line up an accountant and auditor before you start trading.
- Read what a Cyprus Ltd must do every year so nothing is missed.
- Find lawyers and accountants in our business directory.
This guide is general information, not legal or tax advice. Check your own situation with a Cyprus lawyer or accountant.
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Frequently asked questions
How long does it take to register a company in Cyprus?
Usually one to three weeks: around a week for the name approval and another week or so for registration, faster if you pay the express fees. Opening the bank account often takes longer than the company registration itself.
How much does it cost to open a company in Cyprus?
The Registrar's own fees start at about €175 (€10 for the name and €165 for registration), plus roughly €120–€130 for certificates. The lawyer's fee is the larger part and commonly runs from about €900 to €3,500, depending on the firm and what is included.
Can a foreigner own a company in Cyprus?
Yes. There are no nationality restrictions on shareholders or directors. Owning a company does not by itself give a non-EU national the right to live or work in Cyprus, which needs a separate permit.
Do I need a lawyer to set up a Cyprus company?
Yes. The Memorandum and Articles of Association and the HE1 declaration must be prepared and signed by a lawyer licensed by the Cyprus Bar Association.
Is there a minimum share capital for a Cyprus Ltd?
No minimum applies to a private company; many are set up with €1,000 of share capital, which keeps the Registrar fee at €165. Public companies need at least €25,629.
Do Cyprus companies still pay the €350 annual levy?
No. The annual company levy was abolished from 2024. Companies still pay €20 to file their annual return (HE32).
Useful resources
- Invest Cyprus – Establishing a company
- Koufettas Law – Cyprus company formation costs and Registrar fees
- Constantinos Markou & Co – 2026 Cyprus tax reform: key changes for companies
- Nikita & Partners – Cyprus corporate tax 2026 FAQs
- IBCCS – Cyprus UBO register: deadlines and penalties
- Business in Cyprus (gov.cy) – Social insurance registration and contributions
