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 Type | Private LLC (LTD) |
| Country Law | Common and Civil LAw |
| Company Law | Companies Law CAP 113 |
| Registered Office Required | Yes |
| Local Registered Agent Required | No - but recommended for document submission |
| Shelf Companies Permitted | Yes |
| Migration Of Domicile | Yes |
| Average Time To Form Company | 10 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 Directors | 1 |
| Local Director Required | No, ( but advisable for purposes of tax residency if Resident LLC required) |
| Records Public | Yes |
| Board Meeting Location | Anywhere in the World (Unless Resident LLC then in Cyprus) |
| Corporate Directors Permitted | Yes |
| Privacy - Publicly Available Records | Yes - 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 Required | Yes |
| Local or Qualified Position | No - (But recommended for the purposes of taxation) |
| Share Capital | |
| Standard Currency | Euro |
| Permitted Share Currency | Euro |
| Minimum Paid Up Shares | €1708 |
| Usual Authorised | €5000 EUR |
| Bearer Shares Permitted | No |
| No Par Value Shares Permitted | No |
| Shareholders | |
| Minimum Number Of Shareholders | 1 Shareholder |
| Corporate Shareholdes Permitted | Yes |
| Meeting Locations | Can be held anywhere in the world |
| Privacy - Publicly Available Records | Yes |
| Company Accounts | |
| Requirements To Prepare | Yes |
| Audit Required | Yes |
| Keep Financial Records | Yes |
| Requirement To File Accounts | Yes |
| Requirement to File Annual Return | Yes |
| Accounts Publicly Accessible | No |
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 | |
| Location | Island country in the Eastern Mediterranean Sea. |
| Size | Approximate area of 9,251 sq. km |
| Population | Approximately 1,141,166 - Total for the whole Island |
| Languages Spoken | Main and Official Languages: Greek Turkish Although English widely spoken |
| Currency | EURO |
| Politics | Unitary 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.