Incorporate a Company in Cyprus: Administrative Procedures

Published on October 2, 2025 and written by Cyril Jarnias

Cyprus, a Mediterranean island at the crossroads of Europe, Asia, and Africa, is increasingly attracting international entrepreneurs thanks to its favorable tax environment and business-friendly regulatory framework. In 2025, establishing a company in Cyprus remains an appealing option for investors seeking to optimize their corporate structure. This article will guide you through the key steps and administrative requirements for setting up your company on the island.

Why Choose Cyprus for Your Company?

Before diving into the administrative details, it’s important to understand the benefits that make Cyprus a sought-after destination for company formation:

Attractive Taxation: With a corporate tax rate of only 12.5%, one of the lowest in the European Union, Cyprus offers a competitive tax environment. Additionally, the country has an extensive network of tax treaties, allowing for double taxation avoidance with many countries.

Economic and Political Stability: A member of the European Union since 2004 and the Eurozone since 2008, Cyprus benefits from a stable legal and economic framework, inspiring confidence among international investors.

Modern Infrastructure: The island has quality infrastructure, particularly in telecommunications and transportation, facilitating international business operations.

Skilled Workforce: Cyprus has a well-trained workforce with a high level of English proficiency, which facilitates international business exchanges.

Key Steps to Create Your Cypriot Company

1. Choose the Appropriate Legal Structure

The first crucial decision is to select the most suitable legal form for your business. In Cyprus, the most common structures for foreign investors are:

• Limited Liability Company (Ltd)
• Public Limited Company (PLC)
• Branch of a Foreign Company

The Limited Liability Company (Ltd) remains the most popular choice in 2025, offering a good balance between operational flexibility and protection of shareholders’ personal assets.

2. Reserve Your Company Name

Once the structure is chosen, you must submit a name reservation application to the Cyprus Companies Registry. This step is crucial as it ensures the uniqueness of your company name. The process unfolds as follows:

Application Submission: Propose several names in order of preference. Verification: The Registry checks the availability and compliance of the proposed names. Approval: Once approved, the name is reserved for a period of 6 months.

In 2025, this process is fully digitized, allowing for a quick response, typically within 2 to 3 business days.

3. Prepare and Submit the Incorporation Documents

The formal incorporation of your company requires the preparation and submission of several key documents to the Companies Registry. The required documents vary slightly depending on the chosen structure but generally include:

• Company Statutes (Memorandum and Articles of Association)
• Form HE1 (company registration application)
• Declaration of Compliance signed by a Cypriot lawyer
• Information on directors, shareholders, and ultimate beneficial owners

Specificity for 2025: The Cypriot government has implemented a secure online portal for the electronic submission of these documents, significantly reducing processing times.

4. Obtain the Certificate of Incorporation

Once the documents are reviewed and approved by the Companies Registry, it issues the Certificate of Incorporation. This official document marks the legal birth of your company and includes:

• The company’s unique registration number
• The official date of incorporation
• Confirmation of the company’s legal status

In 2025, the average time to obtain this certificate is 5 to 7 business days after the complete submission of documents, thanks to the increased efficiency of administrative processes.

Required Documents by Legal Structure

For a Limited Liability Company (Ltd)

The Ltd remains the most popular legal form in Cyprus in 2025, offering an excellent compromise between personal asset protection and operational flexibility. The specific documents required for its formation include:

• Company Statutes detailing the capital structure, shareholder rights, and governance rules
• Duly completed Form HE1, indicating company, director, and shareholder details
• Certified copies of passports of directors and shareholders
• Recent proof of address for directors and shareholders
• CVs of directors demonstrating their professional experience
• Ultimate Beneficial Owner declaration, in accordance with EU anti-money laundering regulations

2025 Update: Cypriot authorities have introduced an ESG (Environmental, Social, Governance) compliance declaration form for new companies, reflecting the growing commitment to corporate sustainability.

For a Public Limited Company (PLC)

Although less common for small and medium-sized enterprises, the PLC can be advantageous for larger projects or those requiring a more complex capital structure. In addition to the documents required for an Ltd, you will need to provide:

• A detailed prospectus if the company plans a public offering of shares
• Proof of the minimum paid-up capital, generally higher than for an Ltd
• Appointment of an approved auditor
• A more detailed business plan, demonstrating the long-term viability of the project

For a Branch of a Foreign Company

Establishing a branch can be an interesting option for foreign companies wishing to have a presence in Cyprus without creating a separate legal entity. The specific documents include:

• Certified copy of the parent company’s statutes
• Resolution from the parent company’s board of directors authorizing the establishment of the branch
• Appointment of a legal representative in Cyprus
• Recent financial statements of the parent company
• Adapted Form HE1 for branch registration

Essential Post-Incorporation Procedures

Once your company is officially incorporated, several crucial administrative procedures must be undertaken to ensure its compliance and operational readiness:

1. Tax Registration and VAT Number Acquisition

Registration with the Cypriot tax authorities is a mandatory step. You will need to:

• Obtain a Tax Identification Code (TIC)
• Register for VAT if your turnover exceeds the set threshold (€15,600 in 2025)

Timeline: Generally 1 to 2 weeks after submission of the required documents.

2. Opening a Bank Account

Choosing a Cypriot bank or an international bank with a presence in Cyprus is crucial for your operations. The documents generally required include:

• The Certificate of Incorporation
• The Company Statutes
• Proof of identity and residence for directors and shareholders
• A detailed business plan

2025 Tip: Some Cypriot banks now offer fully online account opening processes for newly formed companies, significantly speeding up this step.

3. Social Security Registration

If you plan to hire employees in Cyprus, registration with the social security system is mandatory. You will need to:

• Obtain an employer number
• Register each new employee
• Set up a system for paying social security contributions

4. Obtaining Specific Licenses

Depending on your industry, additional licenses or permits may be required. For example:

• Investment license for financial companies
• Environmental permit for certain industrial activities
• Tourism license for businesses in the hospitality sector

2025 Update: Cyprus has introduced a digital one-stop shop to facilitate obtaining these sector-specific licenses, significantly reducing delays and administrative complexity.

Costs and Timelines to Expect

Setting up a company in Cyprus involves various administrative and professional fees that should be anticipated:

• Name reservation: approximately €40
• Registration fees: starting from €165 for a standard Ltd
• Minimum share capital: €1,000 for an Ltd (although this amount does not necessarily need to be paid immediately)
• Professional fees (lawyer, accountant): variable, generally between €1,500 and €3,000 for a simple structure

Overall Timeline: From name reservation to obtaining the Certificate of Incorporation, allow approximately 2 to 3 weeks. Post-incorporation procedures can add an additional 2 to 4 weeks before your company is fully operational.

Tips for a Successful Formation

• Tax Planning: Consult a tax expert to optimize your company’s structure based on your activities and objectives.
• Bank Due Diligence: Carefully prepare your bank file, as Cypriot banks have strengthened their verification procedures.
• Local Presence: Although not mandatory, having a physical presence in Cyprus can facilitate many procedures and strengthen the credibility of your structure.
• Ongoing Compliance: Ensure you understand and comply with annual reporting obligations to maintain your company’s good standing.