Business Structures for Foreign Investment in Cyprus (2025)

Common Legal Entities:

• Private Companies (Limited Liability Companies): This remains the most popular choice for foreign investors due to its flexibility and relatively simple setup.
• Public Companies (Limited Liability Companies): Public companies are suitable for larger businesses that may seek to raise capital from the public. They have more stringent regulatory requirements.  
• European Companies (SE): An SE is a legal form for public companies in the European Union, allowing them to operate across borders with a single registration.  
• Partnerships (General or Limited): Partnerships are less common for larger-scale foreign investments but may be suitable for specific ventures.
• Branches: Foreign companies can establish a branch in Cyprus, but this structure has certain limitations and is less common than incorporating a subsidiary.  

Company Formation Process:

• Name Approval: Obtaining approval for the company's name from the Registrar of Companies.  
• Filing Documents: Submitting the company's Memorandum and Articles of Association, along with other required documents, to the Registrar of Companies.  
  
  
  

  Key Features of Cyprus Private Limited Liability Companies:

  • Shareholders: One shareholder is sufficient to form a company.
    Shareholders can be individuals or legal entities of any nationality.  
  • Limited Liability: Shareholders' liability is limited to the amount of their invested capital.
  • Maximum Number of Shareholders: The maximum number of shareholders for a private company is generally 50.  
  • Minimum Share Capital: The minimum share capital requirement has changed and should be confirmed with the Registrar of Companies.
    Shares can be denominated in Euros.
  • Nominee Shareholders: Nominee shareholders are permitted.  
  • Directors: At least one director is required.
    The director can be a foreign resident or a legal entity.
  • Secretary: A company secretary is required.
    The secretary can be a non-resident, but a resident secretary is often preferred for companies with management and control in Cyprus.  
  • Registered Office: Each company must have a registered office in Cyprus.  
  • Registration Time: The company registration process typically takes a few days.
    "Shelf companies" (ready-made companies) are also available for immediate purchase.  
  
  
  
  
  

  Advantages of Cyprus for Foreign Investors:

  • Corporate Tax Rate: Cyprus has a competitive corporate income tax rate.
    
  • Tax Benefits: Cyprus offers various tax advantages, including exemptions on dividend payments and capital gains in certain circumstances.
    It is important to consult with a tax advisor for the most up-to-date information.  
  • EU Membership: Cyprus's membership in the EU provides access to the single market and other benefits.  
  • Double Tax Treaties: Cyprus has an extensive network of double tax treaties, which can reduce withholding taxes on cross-border payments.  
  • Developed Infrastructure: Cyprus has a well-developed financial and telecommunications infrastructure.  
  • Skilled Workforce: Cyprus has a pool of English-speaking professionals.
  
  
  

  Key Updates and Considerations:

  • Regulations are Subject to Change: Cypriot company law and tax regulations are subject to change, so it's essential to stay updated.
  • Due Diligence: Thorough due diligence is crucial before making any investment in Cyprus.
  • Professional Advice: It is highly recommended to seek professional advice from lawyers, accountants, and consultants specializing in Cypriot company law and taxation.