Cyprus is one of the most popular and beautiful tourist destinations in Europe. The country has seen a significant increase in the number of businesses being set up in recent years. From the cost of living to a favourable taxation system, the country boasts about being the third largest economy in the European Union with numerous benefits.
Thanks to its strategic location, the island is also a gateway to Europe, Africa and the Middle East. And while English is widely spoken, the country’s official languages are Greek and Turkish.
If you’re thinking of setting up a business in Cyprus, there could not be a better time! While you know the ins and outs of running a business, we will tell you about the company registration process and the costs involved in setting up your business in Cyprus.
The cost of setting up a business in Cyprus
1. The Registration / set up fee
2. The annual company maintenance fee
3. Accounting/auditing fee
4. Expenses of Registrar of Companies
Company registration costs in Cyprus
The registration of a company in Cyprus starts with the submission of an application to the Registrar of Companies. The application must be accompanied by the required documents, which vary depending on the legal structure of the company.
The registration/set-up fee is a one-time payment that is made to the Registrar of Companies in Cyprus. This fee varies according to the service provider where you can find companies that offer services for as low as €500. You can also find Cyprus companies for €1200 to €3000.
Once the application is approved, the company must pay a registration fee and stamp duty. The registration fee for a private limited company is €350 and the stamp duty is €85.
The annual company maintenance fee
Annual fees include the fees for the registered office, the services of nominees, and the directors. The registered office is the address where the public can find your company records and documents. The annual fee for the registered office is €250.
Nominees are individuals or entities that hold shares on behalf of the shareholders. The annual fee for nominees is €250.
The directors of a Cyprus company must be natural persons and they can be of any nationality. The annual fee for directors is €400.
The secretary of a Cyprus company must be a natural person or a corporate body. The annual fee for secretaries is €250.
The registered agent fee is an annual charge that is levied by the government on all companies registered in Cyprus. The current fee is €250.
All companies registered in Cyprus are required to maintain accounting records and prepare financial statements. These documents must be audited by a qualified auditor and filed with the Registrar of Companies every year.
The accounting/auditing fees vary according to the size and complexity of your business. For example, the accounting/auditing fees for a small company with a turnover of less than €1 million and fewer than 10 employees can start from as low as €2000 per year.
Expenses of Registrar of Companies
The Registrar of Companies in Cyprus is responsible for maintaining the Register of Companies and other related records. The Registrar also issues certificates and makes them available to the public.
The Registrar of Companies charges a fee for the search and issue of certificates. The fees vary depending on the type of certificate required. For example, the fee for a Certificate of Incumbency is €125 while the fee for a Certificate of Good Standing is €150.
The set-up costs for a Cyprus company are relatively low when compared to other countries in Europe. And with a favourable taxation system and a strategic location, Cyprus is an ideal destination for setting up your business.
You’ve launched your business, what’s next?
After the company is registered, you will need to obtain a business licence from the Department of Registrar of Companies. The cost of the business licence varies depending on the type of business you are running.
You will also need to open a business account in Cyprus. The best options for business accounts are the
These financial service providers offer a wide range of products and services to meet the needs of businesses of all sizes. They also have a branch network that allows you to easily access your account from anywhere in Cyprus.
There are certain documents that you will need to open a business account. These include:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Passport or ID of the shareholders, directors and company secretary
- Utility bill
- Proof of address
- Business plan
A business in Cyprus offers a number of advantages. These include:
- Lowest taxes in Europe
- Favourable double tax treaties
- Strategic location
- Efficient and modern infrastructure
- Modern financial system
- Highly skilled workforce
- Low set-up costs
- Easy access to European markets
- Attractive incentives for businesses
The process of opening a business account in Cyprus is relatively simple and can be done online with different organisations. Note that, different institutions have different policies and might require different sets of documents. It is possible that your process might take longer than usual with some options due to their multiple requirements and more stringent set of rules.
But there are options like wamo, that make it easier and faster for you to set up your business finances. It offers relatively low set-up costs, fast account opening, and easy access to European markets.