Company Formation
Welcome to Profecys, your trusted partner for seamless Cyprus company incorporation and maintenance.
As a prominent player in the global business landscape, Cyprus offers a strategic location, favorable tax regime, and a robust legal framework that make it an ideal choice for entrepreneurs and investors alike.
With our extensive expertise and comprehensive services, we ensure a smooth and efficient process for incorporating and maintaining your Cyprus company
Incorporation Services
Through our legal partners, we incorporate your business and provide administration services.
Tax Assessment
Assessment and consulting on the tax implications and savings available to Company
Transparency
Complete transparency and assessment of charges for maintaining a Cyprus company.
Substance Services
Consultation and assistance in establishing substance in Cyprus.
Business Assessment
Assessment and consulting on the business structure and operation.
Complete Package
Incorporation, tax/VAT registrations, Social Insurance registration, business consulting and accounting set up.
Tailored Company Incorporation
Our team of experienced professionals is dedicated to providing you with expert consultation to structure the incorporation of your Cyprus company in a way that maximizes the benefits available.
We understand the intricacies of the process and work closely with our legal external partners, who operate under our supervision, to ensure that every aspect of the incorporation aligns with your specific requirements.
Seamless Registration Process
The registration process for your Cyprus company begins with the drafting of the Memorandum and Articles of Association.
These important documents outline the rights and obligations of the shareholders and form the foundation of your company’s operations. Our legal external partners, guided by our team’s expertise, handle the drafting process to ensure accuracy and compliance.
Post-Incorporation Support
In addition, once the company incorporation is complete, our team takes charge of the crucial post-incorporation steps.
This includes facilitating tax and VAT registration, employer registration, accounting planning, and providing comprehensive assistance in setting up the operation of your Cyprus company. Our dedicated support ensures that you are well-equipped to navigate the regulatory landscape and focus on your core business activities.
Simplified Expertise
We understand the importance of a seamless and efficient company incorporation process. When it comes to registering a Cyprus company, we provide you with a hassle-free experience that is both easier and faster compared to many European countries.
Our expert team, in collaboration with our trusted legal external partners, ensures a consistent and high-quality service that takes care of all your registration needs.
Advantages of a Cyprus Company Incorporation
Profits of Cyprus companies who have their residence in Cyprus are subject to a corporate tax rate of 12.5%, one of the lowest tax rates within the European Union (EU).
Incorporation of Cyprus company is possible with 100% foreign ownership with a minimum one shareholder and one director both of which may be other corporations or natural persons.
No withholding tax on dividends, interest and royalties declared by companies to non-resident/domiciled shareholders.
Dividends paid to a Cyprus company are exempt from corporate tax.
Tax exemption on gains from the disposal of shares and other securities.
Beneficial IP regime which covers an 80% exemption on profits from the exploitation or licensing and gains on disposal of Intellectual property
Full capital gains tax exemption on the transfer or sale of shares in a company, except where the company owns immovable property in Cyprus.
Benefit from Double Tax Treaties with more than 55 countries.
Unilateral relief from tax in Cyprus on amounts of tax paid or withheld abroad.
There is no Wealth Tax or Inheritance Tax
COMPANY SETUP
Cyprus Company
Determine Business Structure
Choose the most suitable company structure, such as a private limited company (Ltd), public limited company (PLC), or a branch office, considering your specific needs, goals, and compliance requirements.
Name Reservation
Select a unique and distinctive name for your company and reserve it with the Registrar of Companies in Cyprus. Then, our experienced team can assist in conducting thorough name availability searches and handling the reservation process on your behalf.
Capital and Shareholders
Determine the share capital of your company and identify the shareholders and their respective ownership percentages. Cyprus offers flexibility in capital requirements, allowing for minimal initial share capital.
Company Documentaiton
Prepare the necessary documentation, including the Memorandum and Articles of Association, shareholder agreements, and other relevant legal forms. Our experts ensure accurate and compliant documentation tailored to your business objectives.
Local Registration
Complete the company registration process with the Registrar of Companies in Cyprus. This involves submitting the required forms, supporting documents, and paying the registration fees. At PROFECYS, we handle the entire registration process efficiently, saving you time and effort.
Tax and Legal Compliance
Fulfill the tax and legal obligations applicable to your Cyprus company, such as obtaining a Tax Identification Number (TIN), registering for VAT (if applicable), and complying with reporting requirements. Finally, our dedicated team offers ongoing support to ensure full compliance.
Frequently Asked Questions
Here is a comprehensive and user-friendly FAQ section to guide those interested in incorporating a company in Cyprus.
This will provide potential clients with clear and detailed information, making the process easier to understand and navigate.
General
Cyprus offers several advantages, including:
- A low corporate tax rate of 12.5%, one of the lowest in the EU.
- 100% foreign ownership is allowed, with just one shareholder and one director required.
- No withholding taxes on dividends, interest, and royalties to non-resident shareholders.
- Cyprus has over 55 double tax treaties, reducing the tax burden for international companies.
- Beneficial tax exemptions on dividends, disposal of shares, and intellectual property (IP) profits. These benefits, along with a strong legal system and strategic location, make Cyprus a prime destination for international businesses.
The steps include:
- Name approval: The company name must be approved by the Cyprus Registrar of Companies.
- Drafting of the Memorandum and Articles of Association: These documents outline the structure and rules of your company.
- Submission of incorporation documents: The required forms and documents are submitted to the Registrar of Companies.
- Tax, VAT, and Social Insurance registration: After incorporation, you will need to register the company with the relevant authorities. The process typically takes 5-10 working days depending on document processing.
To incorporate a company in Cyprus, you will need:
- At least one shareholder (can be a foreign entity or individual).
- At least one director (can be a foreign resident or corporate entity).
- A company secretary (required by law, and often provided as part of incorporation services).
- A registered office address in Cyprus. You do not need to be a resident of Cyprus to be a shareholder or director of a Cyprus company.
The required documents include:
- Passport copies and proof of address of shareholders and directors.
- A completed application form for name approval.
- Memorandum and Articles of Association. Our legal partners handle the drafting and submission of these documents, ensuring compliance with Cyprus law.
Timeline & Structure
Cyprus offers one of the most favorable tax regimes in Europe:
- Corporate tax rate: 12.5% on company profits.
- Dividends received by a Cyprus company are generally exempt from tax.
- No withholding taxes on dividends, interest, and royalties paid to non-resident shareholders.
- Profits from the sale of shares and other securities are exempt from capital gains tax (except when related to immovable property in Cyprus).
- IP income benefits from an 80% exemption on profits from the exploitation of IP.
Substance refers to the physical and economic presence of a company in Cyprus. Having real substance (such as office premises, local employees, and local management) helps ensure the company benefits from Cyprus tax treaties and avoids challenges from tax authorities in other jurisdictions. It’s particularly important for companies wishing to benefit from the Cyprus tax regime and double tax treaties.
The incorporation process usually takes 5-10 business days. The exact time depends on the speed of document submission and approval by the Registrar of Companies.
No, there are no restrictions. Shareholders and directors can be individuals or corporate entities, and they can be from any country. There is no residency requirement for either shareholders or directors in Cyprus.
Business-related
There is no statutory minimum share capital for a private limited company in Cyprus, but it’s common practice to issue at least €1,000 in shares. The share capital can be issued in any currency, depending on the business requirements.
Our full-service package covers:
- Company incorporation (including legal drafting and registration).
- Tax and VAT registration.
- Social Insurance registration.
- Business consulting on the structure and operation of your company.
- Assistance with establishing economic substance, if needed.
- Accounting setup and ongoing administrative support. We offer comprehensive post-incorporation services to ensure that your company operates smoothly from the start.
Dividends paid to non-residents or non-domiciled shareholders are not subject to withholding tax in Cyprus. Dividends received by a Cyprus company from subsidiaries are typically tax-exempt, making Cyprus an attractive jurisdiction for holding companies.
Cyprus companies must:
- File annual financial statements and tax returns.
- Submit an annual return with the Registrar of Companies.
- Maintain proper accounting records. Our team provides full support for ongoing compliance, ensuring that all legal, tax, and accounting obligations are met.
Yes, it is possible to incorporate a Cyprus company remotely. With the right legal and administrative support, all necessary documentation can be prepared, signed, and submitted without the need for a personal visit. Our team, along with our legal partners, handles everything on your behalf.
Cyprus does not impose withholding taxes on dividends, interest, or royalties paid to non-residents. This makes Cyprus an attractive jurisdiction for companies that distribute profits internationally.
Cyprus has one of the most attractive IP box regimes in Europe, which allows an 80% exemption on profits from the exploitation of IP, including patents, trademarks, and copyrights. This regime is highly beneficial for companies that rely on IP for their business model.
Cyprus has signed Double Tax Treaties with more than 55 countries. These treaties help businesses avoid double taxation on income earned in different countries by providing reduced tax rates or exemptions. They are particularly beneficial for international companies operating in multiple jurisdictions.
No, Cyprus does not impose any Wealth Tax or Inheritance Tax, making it an attractive jurisdiction for long-term wealth planning and estate management.