Cyprus Private Limited Liability Company (LTD) Formation

Cyprus is the third largest island in the Mediterranean. Positioned as a crossroads linking Europe, Asia and Africa. Greek and Turkish are the official languages, however English is widely spoke and understood, especially in commercial and government sectors.

Since joining the European Union, Cyprus is no longer able to offer offshore company formations, instead, there is the option of either a Resident Limited Liability Company or a Non-resident Limited Liability Company, the non-resident LLC is not required to pay local corporate taxes.

The non-resident LLC is much like the former offshore companies, in that its shares are held outside of the country by non-residents and it avoids local taxes by conducting all business outside of the country.

If wishing to establish a Forex Company, CySec Authorisation cannot be achieved with a non-resident LLC as at least one Director needs to be present on the Island.

  • EU Member State
  • Access to EU Conventions and Agreements
  • Single Member Ownership permitted
  • 0% Tax for non-resident companies
  • Proximity to Europe, Middle East (Asia) and Africa
  • Nominee Services Available
  • Companies Act Modelled after UK provisions
  • New Migration and domicile laws
  • No Nationality or resident requirements if forming a non-resident LLC
  • English widely spoken
  • International Investment Company
  • Holding Company
  • Trading Company
  • Tax Planning
  • Consultancy
  • Professional Services
  • Copyright and Property Holding
  • E-Commerce
  • Forex Brokerage (For Resident LLC)

A Private Non-resident LLC, which does business within Cyprus is liable for tax on all income locally sourced. The non-resident LLC cannot enter into pre-incorporation agreements neither can it remit any income back to Cyprus.

A Private Non-resident LLC many not conduct business in banking, insurance, assurance, reinsurance or other financial services.

A Private Resident LLC, with at least one Director being resident in Cyprus, requires licensing or authorisation from CySec before undertaking any banking, insurance, assurance, reinsurance, fund management or collective investment schemes.

To form a LLC in Cyprus, a few of the requirements are the Name of the company to be incorporated (approval is required before proceeding). Details of all beneficial owners and Company Directors are required such as, a physical address (proof of residential address), personal contact details and certified copies of valid passports, these need to be certified by either a Notary Public, Bank or by the issuing country’s Embassy if a foreign document. A Bank Reference letter is also required.

Once the company name has been approved, all forms and the company’s Memorandum and Articles of Association, is submitted to the Registrar of Companies, along with an affidavit before a Court and the appropriate fee. All objectives and powers of the Cyprus LLC should be contained with the Memorandum and Articles of Association and have to be company specific.

Overview
Company TypePrivate LLC (LTD)
Country LawCommon and Civil LAw
Company Law

Companies Law CAP 113

Registered Office RequiredYes
Local Registered Agent RequiredNo - but recommended for document submission
Shelf Companies PermittedYes
Migration Of DomicileYes
Average Time To Form Company10 to 12 Business Working Days
Government Fees
Minimum Government Formation Charge€400 EUR
Recurring Minimum Annual Company License Fee€350 EUR
Annual Return Filing Fee€60 EUR
Corporate Tax
Corporation Tax

No - For Non-Resident LLC

Yes - for Resident LLC - tax 12.5%

Access to Double Taxation Treaties

No - For Non-Resident LLC

Yes - For Resident LLC - over 40 agreements

All NON-RESIDENT LLCs in Cyprus are exempt from taxes.

RESIDENT LLCs are subject to tax at 12.5% but have access to Double Taxation Treaties.

Directors
Minimum Required Directors1
Local Director RequiredNo, ( but advisable for purposes of tax residency if Resident LLC required)
Records PublicYes
Board Meeting LocationAnywhere in the World (Unless Resident LLC then in Cyprus)
Corporate Directors PermittedYes
Privacy - Publicly Available RecordsYes - Full Disclosure

There is a minimum requirement of one Director, of which may be the only shareholder. Directors can be either individuals or corporate bodies of any nationality and resident of any country.

For the purpose of a Resident LLC in Cyprus, at least one Director needs to be resident in Cyprus.

Company Secretary
Secretary RequiredYes
Local or Qualified PositionNo - (But recommended for the purposes of taxation)
Share Capital
Standard CurrencyEuro
Permitted Share CurrencyEuro
Minimum Paid Up Shares€1708
Usual Authorised€5000 EUR
Bearer Shares PermittedNo
No Par Value Shares PermittedNo
Shareholders
Minimum Number Of Shareholders1 Shareholder
Corporate Shareholdes PermittedYes
Meeting LocationsCan be held anywhere in the world
Privacy - Publicly Available RecordsYes
Company Accounts
Requirements To PrepareYes
Audit RequiredYes
Keep Financial RecordsYes
Requirement To File AccountsYes
Requirement to File Annual ReturnYes
Accounts Publicly AccessibleNo

All NON-RESIDENT LLCs in Cyprus are exempt from taxes.

RESIDENT LLCs are subject to tax at 12.5% but have access to Double Taxation Treaties – Tax losses may be carried forward indefinitely.

Cyprus Facts
LocationIsland country in the Eastern Mediterranean Sea.
SizeApproximate area of 9,251 sq. km
PopulationApproximately 1,141,166 - Total for the whole Island
Languages Spoken

Main and Official Languages:

Greek

Turkish

Although English widely spoken

CurrencyEURO
PoliticsUnitary Presidential Constitutional Republic
Economy

Main Industries:

Tourism

Financial Services

Ship Management

Transport

Air

Road - Driving on the Left

Boat

Time Zone

EET (UTC+2)

Summer (DST) EEST (UTC+3)

International Dialling Code+357
Internet TLD.cy

Contact us today to enquire about the Cost of Formation or if you have further questions regarding the application process.

Cyprus Limited Liability Company (LLC - LTD) Formation Enquiry

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