Establishing a new corporate entity is a challenge in itself, especially when the jurisdiction is known for its strict legal and financial framework. One of the leading destinations for international business is Cyprus, offering an attractive tax regime, a strategic EU location, and an extensive double tax treaty network. This guide has curated a 7-step actionable checklist for 2026 for those planning to undertake a new corporate venture. When you understand how to set up a Cyprus company, you can also take advantage of the benefits that it encompasses.
Step 1: Secure your company name & define corporate structure
Before you file any official paperwork, secure a unique name for your company.
- Name reservation: Submit the proposed company names (2-3 alternative names) to the Registrar of Companies for approval, provided that these names are non-identical and unique from the existing ones. In most cases, your local legal advisor will handle the name search and reservation digitally.
- Define corporate structure: Since the most common and versatile entity is the Private Company Limited by Shares, there are a few company particulars you must decide on:
- Share capital: Determining the authorised and issued share capital. While private companies are no longer required to adhere to a minimum capital requirement, the standard figure of €1,000 to €5,000 remains common.
- Directors and secretary: Cyprus allows for 100% foreign directorship; however, a private company must have at least one director and a company secretary (either a legal or natural person).
- Shareholders: Must have at least one shareholder, the ultimate beneficial owners (UBOs), whose details will be disclosed to the authorities, but excluded from the public register.
Step 2: Engage a licensed Cyprus lawyer & corporate service provider
Now comes the most critical step to incorporate a company. The Cypriot legal system requires drafting of specific documentation, which must be filed only by licensed professionals. That is why you must partner with a local law firm to ensure legal compliance and also serve as a liaison with all government bodies.
It is the responsibility of your lawyer to draft the company’s constitutional documents, the Memorandum and Articles of Association. These documents contain specific details of the company’s powers, objectives, and internal governance rules. Therefore, ensure to seek reliable professional guidance to avoid significant delays, rejections, and compliance issues down the line.
Step 3: Prepare & file the incorporation documents
Now that your company name is reserved and the corporate structure is defined, the next step is to prepare the incorporation bundle for submission to the Department of Registrar of Companies and the Official Receiver. Your lawyer has to prepare the following essential documents:
- The approved company name.
- The Memorandum and Articles of Association.
- Form HE1: Declaration of Compliance by the company’s initial secretary/subscriber.
- Form HE2: Statement of the company’s registered office address.
- Forms HE3 & HE4: Details of the directors and secretary.
Upon successful review of your submitted documents, the Registrar will issue a Certificate of Incorporation, signaling the official existence of your company as a legal entity.
Step 4: Obtain a Tax Identification Number (T.I.N.) & register for social insurance
Immediately after incorporation, the next step is to register the company with the Tax Department for a Tax Identification Number (TIN). This number is critical for all financial and tax-related activities of the company.
- TIN registration: TIN registration is handled by your corporate service provider, involving opening of separate bank accounts, employing staff, and filing tax returns.
- Social Insurance registration: Registration for Social Insurance Services is a legal requirement if the company will have employees in Cyprus (including non-Cypriot directors receiving remuneration).
Step 5: Register for VAT (If applicable)
When should you register your private company for Value Added Tax (VAT)? VAT registration becomes mandatory if your company’s annual taxable turnover exceeds or is expected to exceed €15,600 threshold. Even if the turnover is below the threshold, voluntary registration can be beneficial when reclaiming input VAT on business expenses.
This process can be complex, so allow your accountant to apply (Form VAT 101) to the VAT Service. Cyprus imposes a standard VAT rate of 19%, with reduced rates of 9% and 5% for specific goods and services (e.g., hospitality, pharmaceuticals).
Step 6: Open a corporate bank account
Every business should maintain a separate corporate bank account to conduct business effectively. While Cyprus has a wide range of local and international banks, each has its own due diligence requirements. With a rigorous process, the documents needed are:
- Certificate of Incorporation.
- Memorandum and Articles of Association.
- Certificate of Registered Office Address and Directors/Shareholders.
- Tax Identification Number (T.I.N.).
- Proof of business activity (business plan, invoices, contracts).
- Detailed information and documentation for all UBOs, directors, and signatories (passports, proof of address, CVs/references).
Banking is a critical process in running a business, and your legal and financial advisors offer strategic guidance tailored to your business profile.
Step 7: Establish a registered office & commence ongoing compliance
Every company incorporated in Cyprus must have a registered office address within the Republic, which serves as the official address for receiving legal and government correspondence. From the moment of incorporation, your company is subject to ongoing obligations:
- Annual levy: A €350 annual fee is payable to the Registrar of Companies.
- Financial statements: Companies are required to prepare and submit audited annual financial statements to the Tax Department and the Registrar of Companies.
- Annual tax returns: Must annually file a Corporation Tax Return (Form TD4), with the current corporate tax rate being 12.5%.
- VAT returns: If registered for VAT, periodic returns (typically quarterly) must be filed.
Failure to meet these obligations can result in penalties, strikes-off, and loss of good standing.
Summing up
Do you want to simplify and streamline this complex administrative journey? Then follow this 7-step process meticulously. Work with experienced local professionals to ensure the establishment and ongoing compliance of your company correctly, allowing you to focus on what you do best. With a fully operational company in Cyprus, you can now capitalize on the opportunities within the European Union and beyond.
