Cyprus Limited Foundation
Setting up a company in Cyprus offers entrepreneurs numerous advantages such as
- Low corporate taxes
- High income tax allowances
- Flexible residence regulations
Additionally, companies and trusts are required to disclose information about their beneficial owners to the Cyprus Securities and Exchange Commission (CySEC) as part of anti-money laundering efforts. With a Cyprus Limited, you can benefit from the attractive tax framework and successfully set up your company. Below we look at company formation, the various legal entities, costs and follow-up costs, and the advantages of a Limited Liability Company. Find out whether setting up a company abroad in Cyprus makes sense for you. Get in touch with us for more information.
Free Advice on Emigrating to Cyprus With a Foreign Company
Immigrating to Cyprus is a complex process if you don’t have an expert at your side. It doesn’t have to be that way! We offer a free initial consultation if you want to immigrate to Cyprus. We will help you make the best decision for your life. Enjoy our full service for your emigration.
How Does the Company Registration Process in Cyprus Work?
Anyone wishing to set up a company in Cyprus in the European Union, such as Cyprus Ltd, can look forward to a smooth company registration process. The formation is relatively quick and does not necessarily require the personal presence of the founder. Submitting certified copies of identity documents or passports minimizes bureaucratic hurdles. It is crucial to hire a lawyer registered with the Cyprus Bar Association to prepare essential legal documents required under Cypriot law. We usually complete the incorporation of the Cyprus company within 6 working days.
However, it is important to note that the Cyprus Companies Law is outdated and ineffective, necessitating significant reform to adapt to modern business realities. That’s why you should rely on our help.
What Are the Costs Involved in Setting Up a Company and What Are the Follow-Up Costs?
Setting up a company in Cyprus can vary in cost depending on the chosen company structure and additional services. The cost of setting up a company in Cyprus with us is around EUR 1,300 (opening a simple limited company) + EUR 250 (all-inclusive add-on) net, while the average price of an agency for a Cyprus Ltd is around EUR 2,000 (net). We offer you a high-quality service and many years of experience. Setting up a company is an everyday transaction for us, as we have already opened over 500 companies. In addition to these costs, since 2024 there is not even an annual levy fee of EUR 350.
Take a look at our transparent price list for Cyprus! Income, gains, and profits from non-Cyprus sources are exempt from various taxes, including capital gains tax, highlighting the favorable tax regime for non-residents and those engaging in asset management or offshore foundations. Additional costs may arise depending on individual needs and business activities. A careful calculation is therefore essential to avoid any unpleasant surprises later on. Please note that the costs mentioned are only average values. They vary depending on the specific requirements and circumstances.
Find Out Whether Setting Up a Company Abroad in Cyprus Makes Sense for You!
Setting up a company abroad can make sense for certain people and offer various advantages. Cyprus offers attractive tax conditions for companies – particularly regarding the EU Parent-Subsidiary Directive and the minimum shareholding threshold. In addition, opening a company in Cyprus is characterized by a relatively quick and not bureaucratic process with manageable incorporation costs. Last but not least, the non-dom status in conjunction with the 60-day rule in Cyprus is also attractive. This enables foreigners to receive capital gains and dividends tax-free. Cyprus income tax laws impact taxation for beneficiaries based on their residency status, including exemptions from certain taxes for non-Cyprus sources of income and specific conditions for tax residency.
However, find out about all the options and the legal conditions abroad. A foundation, as a distinct legal entity, is created when assets are provided for a specific purpose. Unlike companies, foundations do not have shareholders but possess a separate legal personality, allowing them to manage assets and enter into contracts independently. If necessary, seek expert advice to weigh up the individual suitability. Play it safe with our permanent establishment service if you want to find out about setting up a company in Cyprus and the applicable law! Plan your finances abroad effectively with us! Visit us at our local office or make an appointment online. We can also help you if you want to open a bank account.
What Are the Advantages of Setting Up a Limited Liability Company in Cyprus?
As an entrepreneur, you must be familiar with the legal and tax aspects of setting up a company. One of the options is to set up a Cyprus Limited (Ltd.). This offers a variety of tax advantages that can be very attractive for companies. A notable option is the ‚private company limited by shares‘, which is significant in the local corporate landscape. The most important are:
- Low corporate taxes: In certain countries such as Cyprus, Ltd incorporation allows a low corporate tax rate of 12.5%. This tax concession grants companies the possibility of reducing their tax burden with a Cyprus domicile and thus generating more profits. However, companies should note other factors besides the tax burden that must be considered when choosing a country of incorporation.
- High income tax allowance: Forming an Ltd. can also increase the income tax allowance. In Cyprus, for example, the tax-free allowance is €19,500 per person. This means no income tax has to be paid up to this amount. The maximum rate is 35%. Cyprus is therefore no longer considered to be particularly favorable in this respect. Compared to other EU countries such as Germany (42%), this tax is nevertheless significantly lower. Additionally, no capital investment is needed for a private limited liability company, unlike the higher minimum share capital required for public limited liability and subsidiary companies.
- Flexible residence: Forming a Ltd. often also enables flexible residence in the country of incorporation. In some cases, only a minimum stay of 60 days per year is required to obtain tax residency on the Cypriot island. This offers entrepreneurs the opportunity to conduct their business internationally while benefiting from the tax advantages of the Ltd. This allows you to permanently reduce your operating costs.
- Limited liability: Another advantage of the Ltd. is the limitation of liability. The assets of the company are separated from the personal assets of the shareholders. This means that entrepreneurs are not personally liable for debts or losses. This aspect increases security and minimizes financial risk.
- Simple company formation in Cyprus: Forming an LTD is fast and easy with experts like BS Holding. You don’t even have to be there to register the company name. We take care of everything for you if you provide us with the right documents to open the Cypriot Limited Company.
- No business tax: There is no Cypriot business tax, meaning you do not have to pay this as a managing director with a tax residence in Cyprus. Your limited company thus minimizes your expenses and maximizes profits within the European Union, completely legally with a VAT number.
Support Programs for Company Formation: Cyprus for Companies
If you plan to set up a company in Cyprus, you should expect some costs. However, there are also support and funding programs for your business. The EU offers funding and support through the Recovery and Resilience Facility (NextGeneration EU) and the Horizon Europe program. The aim is to promote the economic development and resilience of its members. Not only trade fairs and congress participation or legal and consultancy costs are supported. Local industry experts can also receive financial support.
The state program ‘Invest Cyprus’ also offers various incentives and support for companies with tax residency on the island of Cyprus. The IP Box is also interesting. The IP Box, also known as the Patent Box, is a tax incentive scheme that encourages companies to invest in research and development. It allows a significant reduction in effective tax rates on income from intellectual property (IP), such as patents, software, and other intangible assets. In Cyprus, the scheme allows an 80% exemption on profits from utilizing such rights.
This results in an effective tax rate of only 2.5% after the establishment of a Cyprus holding company. This makes Cyprus an attractive location for companies investing in innovation and technology.
Tax burden: GmbH and Cyprus Limited in Comparison
When you set up a company, you also need to think about taxation. There are some important differences between a GmbH and a limited company in Cyprus. The latter offers tax advantages, such as a low corporation tax rate of just 12.5 percent. Furthermore, there is no trade tax for this legal form. In addition, a minimum share capital of EUR 1,000 is sufficient for founding a limited company. In Germany, at least €25,000 in share capital must be paid in. Moreover, a German GmbH is taxed at 15% by the tax office after entry into the commercial register.
On top of this, however, there is the solidarity surcharge and around 15 % trade tax. This means you pay more than twice as much in Germany after registering your business! Personal income tax, alongside other taxes such as capital gains tax, should be considered when planning your tax strategy. Another advantage of the Cypriot EU island is its non-dom status. This further minimizes the tax burden. Of course, everything also depends on individual factors – we recommend you seek professional advice and take a close look at the conditions.
This way you will know whether Cyprus or countries like England or Ireland are more suitable. We know the tax regulations inside out and can therefore offer you, as a foreigner, the best advice with precise details and more. Leave nothing to chance and fulfill your tax obligations abroad! The disadvantages of Germany do not await you in some other countries in the world. Foreign companies operating in Cyprus must adhere to specific administrative obligations and legal responsibilities, including accounting standards and notification requirements for terminating business activities.
Can I Set up a Cypriot Company With Residence in Germany?
There is good news for all those who live in Germany or other EU countries but want to set up a company in Cyprus: It’s possible with us! Play it safe with BS Holding! We make sure you fulfill all the requirements and benefit from all the possible advantages. Thorough research into the legal conditions and tax regulations is a good start to putting your own Cypriot company on a secure footing. With the right support, ambitious entrepreneurs can realize their business ideas and expand successfully. You will receive a VAT number recognized by every member of the European Union.
This allows you to pay taxes legally in Europe while reducing expenses in your usual location.
What Is Immigration and Personal Income Tax as an Entrepreneur in Cyprus Like Today?
Immigrating to Cyprus as an entrepreneur still offers several advantages today. The non-dom status allows immigrants to be exempt from taxes on dividends, cryptocurrencies, share gains, and property income for 17 years. Cyprus also offers a low tax rate and attractive tax benefits for foreign companies. For example, you can run your online business in Cyprus as a digital nomad. With the 60-day rule, a stay of 60 (full) days per calendar year in Cyprus is sufficient to achieve personal tax residency.
However, please note the specific requirements and legal provisions for immigrating to Cyprus. Our relocation service will help you after an inquiry by presenting you with the best options. We offer professional tax advice for your requirements so that relocation stress is no longer an issue. We aim to help our clients feel comfortable and settle in quickly.
Non-dom status: a key to success for company formation - Cyprus
As an economically attractive location, Cyprus has lots to offer, such as non-dom status. This special status allows company founders to remain exempt from taxes on dividends, share profits, and investment income for up to 17 years. For company founders, this aspect can make the difference between successful expansion and restrictions due to high tax burdens. With non-dom status and the favorable limited company as an incentive, Cyprus is a real option, especially for companies with international business activities. Bear in mind, however, that you must fulfill certain requirements due to double taxation agreements with countries such as Germany, Switzerland, or Malta.
Immigration Regulations and Requirements for Setting Up a Company in Cyprus
Cyprus is a beautiful country with many advantages like EU membership for immigrants. However, before you pack your bags and plan to enjoy life on the island, you should be well-informed about the immigration regulations and requirements. Each situation is different. To enter the country as an EU citizen, all you need is an identity card or passport. To set up a Cyprus Limited company, you generally need to have the following documents to hand:
- Proof of identification of the founders and directors: Copies of passports or identity cards.
- Proof of address: A copy of a recent utility bill or bank statement to confirm the address of the founders and directors.
- Memorandum and Articles of Association: A document that sets out the rules and conditions of the company.
- Company Registration Forms: Required forms that must be submitted to the Cyprus Chamber of Commerce.
- Name proposals: At least three proposed names for the limited company to be incorporated.
Additionally, companies must maintain a registered office address in Cyprus, where official correspondence is directed. Note that the exact requirements may vary depending on the specific situation and current legal requirements. Contact a tax advisor in Cyprus or a specialized agency. This will provide you with precise information and support when setting up a Cyprus Limited. If you make an informed decision, you will successfully master the immigration process.
Benefit from the many advantages of living in Cyprus all year round with a Cyprus Ltd. Businesses must also register with social insurance services in addition to the Tax Department to comply with regulatory requirements.
Get In Touch With Us Now: We Can Help You Set up a Cyprus Limited Company
Are you dreaming of your own company and would you like to benefit from the tax advantages of a limited company or an offshore company in Cyprus? Then BS Holding is the right partner for you! Our experienced and competent team will provide you with customized advice. We ensure that your company opening runs smoothly and effectively and that you maximize your income. We understand the complexity of the business environment and offer you the best solutions. As experts in the field of Cyprus Limited company formation, we know the legal requirements and advantages of these types of companies inside out.
We accompany you step by step – from registration to fulfillment of all necessary requirements. Start your own company now and benefit from tax advantages with BS Holding at your side! Our services include
- Customized advice on company formation - Cyprus: We take the time to understand your specific needs and work with you to develop a tailor-made solution for your application. The legal framework established by the Cyprus International Trusts Law of 1992 provides a robust foundation for trust structures, attracting high-net-worth individuals.
- Legal support: We take care of all legal aspects and (if required) accounting, including the complexities of the Companies Law and Income Tax Law that affect limited liability companies during processes like partial division.
- Administrative services: We support you in managing your business or investment and ensure that all necessary legal and administrative requirements are met.
- Tax advice: Our team of tax experts will help you optimize your tax obligations to maximize the benefits.
- Opening an account: We know the benefits of the different banks and help you get access to an account.
Frequently Asked Questions
Why should I set up a company in Cyprus?
There are several reasons why a limited company is more attractive than a normal company or offshore company in Cyprus. The country offers a stable economy, fewer controls, liberal corporate legislation, tax advantages such as tax exemption on dividends and various tax benefits, as well as a simple and unbureaucratic incorporation procedure with relatively low costs. Additionally, starting a private company, such as a private company limited by shares, offers benefits like limited liability and fewer disclosure requirements compared to public companies.
What does an LTD business cost in Cyprus?
The costs for setting up an LTD in Cyprus vary depending on the service provider and are generally between 1,200 and 3,000 euros (net). In addition, there were an annual fees of around €350 for this type of business establishment. It doesn’t exist anymore. Foreign companies operating in Cyprus must also adhere to administrative obligations and legal responsibilities, including accounting standards and notification requirements for terminating business activities.
Company formation Cyprus: Why do I need a full service for the process?
A full service for company formation in Cyprus offers you expert support with legal, tax, and administrative tasks for companies. This saves you time and ensures that all local regulations are complied with. This is particularly important if you are unfamiliar with Cypriot business practices and want to start trading straight away without any problems.