How much does it cost to set up a company in Cyprus?

The Registrar charges €165 (or €265 expedited) plus €10 for the name. With the lawyer's fee, the €49 Bar Association stamp, English documents and certificates, most founders pay about €1,900–€2,300 in total.

How long does company formation in Cyprus take?

About 6–10 working days to a registered company, including name approval, if you pay for expedited processing. Getting a bank account, TIN and VAT number usually takes 2–4 weeks in total.

What is the corporate tax rate in Cyprus in 2026?

15%, from 1 January 2026. It was 12.5% until 31 December 2025.

Is there still an annual company levy in Cyprus?

No. The €350 annual levy was abolished from 2024. The recurring costs now are the annual return fee (€20), the audit or review, bookkeeping and the secretary.

Does a Cyprus company need an audit?

Yes. All Cyprus companies need audited accounts, but small companies under the turnover and €500,000 asset limits for two consecutive years can opt for a cheaper review instead.

Does setting up a Cyprus company let me live in Cyprus?

No. A company is not a residence permit. UK-only passport holders need a permit such as an employment permit through a qualifying company, a digital nomad visa or permanent residence. Our entrepreneurs hub explains the options.

Can I form a Cyprus company and still live in the UK?

You can, but the company will probably be treated as UK tax resident if you make its decisions from the UK. That removes the point of the 15% rate. Talk to a UK–Cyprus tax adviser first.

What documents do I need to register a company in Cyprus?

A certified passport copy and proof of address for every director, shareholder and beneficial owner, plus the company name, registered office and a short business description. Your lawyer drafts the Memorandum and Articles and forms HE1, HE2 and HE3 from these, and the bank will later want source-of-funds evidence.

Should I be a sole trader or form a company in Cyprus?

For profits above roughly €30,000, a company usually costs less in tax for a non-dom owner: about 17% in total against about 37% for a sole trader on €60,000 of profit. Below that, the audit and bookkeeping costs of a company eat most of the saving. See the worked example above.

Can I buy a ready-made (shelf) company in Cyprus?

Yes, some corporate service providers sell companies that are already registered, which saves the week or two of name approval and filing. You inherit the company's history, though, and the bank still runs full checks on you. For most UK founders a new company is cleaner.

How can I check a company registered in Cyprus?

Use the Registrar of Companies' free online eSearch of the business registry. It shows the registration number, status, registered office and officers; certified extracts cost extra.

Why do people register a company in Cyprus?

Mainly for the 15% corporate tax, 0% SDC on dividends for non-dom owners, no Cyprus tax on gains from selling shares, and EU membership with the euro. Those benefits only hold if the company is genuinely run from Cyprus.

Company Formation in Cyprus (2026): Costs, Steps, Timeline

Company Formation in Cyprus: How to Register a Limited Company in 2026

A Cyprus private limited company costs €165 in Registrar fees and about €1,900–€2,300 all in once a lawyer is involved. Incorporation takes 6–10 working days, the whole thing can be done from the UK, and profits are taxed at 15% from 1 January 2026. Here is every step, fee and annual filing.

JJason 19 min read Last verified 27 September 2026

Get a Cyprus company set up Check my tax route first

The short version

Registrar fee: €165 to incorporate (standard) or €265 expedited. Name approval is €10 (or €30 expedited).

Only a licensed Cyprus lawyer can prepare and sign the incorporation documents. You cannot do this yourself.

Real total: about €1,900–€2,300 including legal fees, certificates and English documents.

Timeline: 6–10 working days to incorporate; 2–4 weeks until you have a bank account and tax numbers.

Corporate tax is 15% from 1 January 2026 (it was 12.5%). The €350 annual levy was abolished from 2024.

A company does not give you the right to live in Cyprus. UK-only passport holders need a separate residence permit.

Cyprus company formation in numbers

€165

Registrar incorporation fee

Standard; €265 expedited

15%

Corporate tax rate

From 1 Jan 2026

6–10

Working days to incorporate

Including name approval

€15,600

VAT registration threshold

Over any 12 months

What you are actually setting up

Almost every UK founder forms a private limited liability company by shares — a "Ltd". It is the Cyprus equivalent of a UK limited company: one or more shareholders, at least one director, and your personal assets kept separate from the company's debts.

The Department of Registrar of Companies and Intellectual Property (the Registrar, part of the Ministry of Energy, Commerce and Industry) recognises five company types. Four of them are for specialist cases.

Company type	Minimum share capital	When it makes sense
Private limited by shares (Ltd)	None (most use €1,000)	Trading, consulting, holding — the default
Public limited by shares (plc)	€25,629	Raising money from the public
Limited by guarantee, no share capital	n/a (€235 Registrar fee)	Clubs, charities, associations
Limited by guarantee with share capital	Varies	Rare hybrid structures
Variable capital investment company	Varies	Investment funds

The rest of this guide assumes a private Ltd. If you are weighing Cyprus against another EU base, our Cyprus vs Ireland company comparison runs the numbers side by side.

Who can form a Cyprus company?

Anyone can. There is no nationality or residency requirement to own shares or to be a director, so a UK resident can own 100% of a Cyprus company and be its only director.

A quiet old town street in Paphos on a spring morning with café chairs outside — Ktima, the old town, on a spring morning

That is the legal position. The tax position is different. Since 2023 a Cyprus-incorporated company is Cyprus tax resident by default, and from 2026 that holds unless a tax treaty says otherwise. But if you are the sole director and you live in Manchester, HMRC treats the company as UK resident because it is managed and controlled from the UK. It is then resident in both countries, and the UK–Cyprus treaty makes the two tax authorities agree which one wins, usually on where it is really run. We cover this properly in our company substance guide.

Two other things surprise British founders:

You need a company secretary. Every Cyprus company must appoint one. Your law firm or accountant usually fills the role.
The company does not give you residence. Forming a Cyprus company is not a visa. UK-only passport holders need a separate permit to live here. The usual founder route is a work permit through a company of foreign interests, which needs a €200,000 investment in Cyprus and a salary of at least €2,500 a month for you. Our entrepreneurs hub explains that and the other routes.

Company formation in Cyprus step by step

The whole process runs through your lawyer. Budget 6–10 working days to a registered company and 2–4 weeks until you can trade.

01
1–14 days
Approve the name
Your lawyer applies to the Registrar. €10 standard (up to 2 weeks) or €30 expedited (a few working days). An approved name is held for 6 months. It must end in Ltd or Limited.
02
2–3 days
Prepare the documents
The lawyer drafts the Memorandum and Articles of Association (signed in Greek) and forms HE1 (statutory declaration sworn by the lawyer), HE2 (registered office) and HE3 (first directors and secretary).
03
Same day
File with the Registrar
Filed online (e-filing) or by hand. Fee €165, or €265 with the €100 expedite fee. You do not need to be in Cyprus.
04
2–4 working days
Get the certificates
The Registrar registers the company and issues the Certificate of Incorporation (free in Greek). Order English certified copies for the bank — €20 each (€40 expedited).
05
1–3 weeks
Register for tax and open a bank account
Register the company with the Tax Department for a Tax Identification Number (TIN), then VAT and Social Insurance if needed, and open the corporate bank account.

The steps in more detail

1. Name approval

Your lawyer checks the name against the register and applies. Names that are too close to an existing company get refused, so give them two or three options. Expedited approval is usually worth the extra €20: standard approval can take up to two weeks, and tier-2 law firms quote 1–4 working days for expedited.

The name must end in Ltd or Limited. Cyprus corporate lawyers report that the Registrar refuses words such as National, International, Europe or Euro, Cooperative and Municipal without special justification, and asks for evidence before it accepts regulated words like Bank, Insurance, Trust or Broker. If your UK company's name contains one of these, check it before you promise it to clients.

2. Document preparation

Only a lawyer licensed by the Cyprus Bar Association can prepare and sign the incorporation documents. The HE1 statutory declaration carries a Bar Association stamp of €49 for a standard €1,000 share capital. Government stamp duty itself was abolished from 1 January 2026.

The Memorandum and Articles must be signed in Greek. If you want an English version on the file — and your bank will — the Registrar charges €160 for the translation file.

3. Filing and registration

The lawyer files online or on paper. The Registrar's fee is €165 for a company with share capital; add €100 to expedite. Once filed, approval takes about 2–4 working days.

4. Certificates

The Certificate of Incorporation is free in Greek. Banks want certified English copies of four certificates: incorporation, directors and secretary, shareholders, and registered office. That is €80 standard or €160 expedited.

A Cyprus company must register with the Tax Department online through the Tax For All (TFA) portal to get its TIN. VAT registration comes after that, on form T.D. 1101. If the company pays anyone a salary — including you — it must also register as an employer with Social Insurance Services.

The shaded courtyard of a converted limestone office building in Paphos — A converted townhouse office in old town Paphos

Apostilles and UK paperwork

If a UK bank, HMRC or Companies House (for example, when your Cyprus company becomes a shareholder of a UK one) needs to see the certificates, ask your lawyer for apostilled certified copies at the same time. Ordering them later adds another round trip.

From experience

What the timeline looked like in practice

Setting up a company here took me about three weeks from the first call with a lawyer to a live bank account. The incorporation itself was the quick part. The bank's compliance questions took the longest, so have your source-of-funds paperwork ready before you start.

— Jason

How much does company formation in Cyprus cost?

The Registrar's fees are small. The lawyer's fee is most of the bill.

Item	Standard	Expedited
Name approval (Registrar)	€10	€30
Incorporation forms HE1, HE2, HE3 (Registrar)	€165	€265
HE1 stamp (Cyprus Bar Association)	€49	€49
English Memorandum and Articles file (Registrar)	€160	€160
4 certified certificates in English	€80	€160
Government and stamp costs	€464	€664
Lawyer's fee (typical, before 19% VAT)	€1,200–€1,500	€1,200–€1,500
Realistic all-in total	about €1,900–€2,300	about €2,100–€2,500

Registrar fees from companies.gov.cy (checked September 2026). Lawyer fees and certificate prices are ranges quoted by Cyprus law firms and corporate service providers in 2026; get a fixed written quote. The €350 annual company levy was abolished from 2024.

Directors. You need at least one. A director can be an individual or a company and does not have to own shares. There is no residency rule, but for tax purposes at least one director who genuinely makes decisions in Cyprus is what keeps the company Cyprus-resident. If you live in Paphos and run the company yourself, you are that director.

A small meeting room in a restored stone townhouse in Paphos with afternoon light — A board meeting room in a restored Paphos townhouse

Secretary. Mandatory. The secretary files the annual return, keeps the statutory registers and notifies the Registrar of changes. A law firm or accountant typically charges for this as part of an annual package.

Shareholders. One is enough, of any nationality. Every company must also record its beneficial owners (anyone holding over 25%) in the Registrar's beneficial ownership register.

Share capital. There is no minimum for a private company. The usual set-up is 1,000 shares of €1, which your bank will expect to see paid in.

Registered office. Every company needs a Cyprus address for official post. It does not have to be where you work, and changing it later costs €20 (form HE2). If you want the company to hold up on substance, a real office or a home office in Cyprus is better than an address-only service.

Free introduction

Want the company set up properly first time?

We introduce you to a vetted Cyprus corporate lawyer who handles the name, documents, filing, TIN and bank application, and co-ordinates with your accountant. The introduction is free; the lawyer quotes you a fixed fee.

Fixed-fee quotes from lawyers who form companies for UK clients
Bank account and VAT registration handled in the same process
Advice on directors and substance before you sign anything

Founder-led. Replies within one working day.

Corporate tax after the 2026 reform

Cyprus corporate income tax is 15% from 1 January 2026. It was 12.5% up to 31 December 2025. The change came in the tax reform law published on 31 December 2025, which PwC and KPMG both confirm.

What else a founder should know about the company's tax:

Tax year is the calendar year. The company pays provisional tax in two instalments, on 31 July and 31 December, based on an estimate of that year's profit.
Tax return (TD4). From the 2026 tax year the return is due by 31 January of the second year after the tax year (so 31 January 2028 for 2026). It was 31 March before. Any balance of tax is now due on the same date, instead of 1 August of the following year.
Audited or reviewed accounts are the basis of the return.
Dividends to non-resident shareholders carry no Cyprus withholding tax in most cases.
Gains on shares and securities are exempt from corporate tax.
Losses can be carried forward against future profits. PwC gives 7 years; KPMG reports the reform extended it from 5 to up to 10 years. Confirm the period with your accountant before you rely on it.
Deemed dividend distribution — the old rule that taxed you as if the company had paid out 70% of its profits — is abolished for profits from 2026 onwards. Profits up to 2025 stay under the old rules.

How much you personally pay when you take money out depends on your own residence and domicile. For a UK founder who becomes Cyprus tax resident and non-domiciled, dividends carry 0% Special Defence Contribution and only the 2.65% GeSY health contribution. See our non-dom guide and the 60-day rule.

Watch out

The 15% only works if the company is really run from Cyprus

A Cyprus-incorporated company is Cyprus resident by default, but if the real decisions are made in the UK, HMRC treats it as UK resident too and can tax it at up to 25%. The UK–Cyprus treaty then decides which country wins, and a company run from a UK kitchen table usually loses. Read what counts as substance and the risks of running a company from the wrong country before you form anything.

Sole trader or limited company in Cyprus?

You don't need a company to work for yourself in Cyprus. You can register as self-employed with the Tax Department and Social Insurance Services instead. The difference is how the profit is taxed. If you already own a UK company, weigh up the options for running a UK business from abroad before you form a new one.

Cypriot coffee and a closed notebook on a mosaic table in a Paphos courtyard — Cypriot coffee always comes with a glass of water

As a sole trader, your profit is taxed at personal income tax rates: 0% up to €22,000, then 20%, 25%, 30% and 35% above €72,000 (the 2026 bands). You also pay 16.6% social insurance, up to the €68,904 earnings ceiling, and 4% GeSY. You only need audited accounts once your income passes €70,000 a year.

Through a company, the profit pays 15% corporate tax. If you're a Cyprus tax resident who is non-domiciled, the dividend you take out carries 0% Special Defence Contribution and only the 2.65% GeSY contribution. Cyprus-domiciled owners pay 5% SDC on dividends from 2026 profits.

Worked example: €60,000 of profit in 2026

	Sole trader	Company, all paid as a dividend (non-dom owner)
Income tax / corporate tax	€9,900	€9,000 (15%)
Social insurance	€9,960 (16.6%)	€0 on dividends
GeSY	€2,400 (4%)	€1,352 (2.65% of €51,000)
Total tax and contributions	€22,260 (37%)	€10,352 (17%)
Extra running costs	Low	€2,000–€3,800 a year (bookkeeping, audit or review)

This is our own illustration, before allowances and deductions, using PwC's 2026 rates. It leaves out two things that narrow the gap. Social insurance buys you a Cyprus state pension, and dividends don't. And most founders who need a work permit must pay themselves a salary of at least €2,500 a month, which is taxed like the sole trader's income.

The bottom line: below roughly €30,000 of profit, the company's running costs eat most of the saving. Above that, a company usually wins for a non-dom, as long as it is really run from Cyprus.

VAT registration

A Cyprus company must register for VAT when its taxable supplies over the previous 12 months exceed €15,600, or are expected to exceed €15,600 in the next 30 days. That is far lower than the UK's £90,000 threshold, so many one-person consultancies cross it in their first year.

A palm-lined avenue of glass office buildings in Limassol on a sunny morning — Limassol's business district

The standard rate is 19%, with reduced rates of 9%, 5%, 3% and 0% for specific goods and services. Returns are quarterly and the VAT is due by the 10th day of the second month after the quarter ends.

Selling services to businesses in other EU countries usually needs a VAT number from the start, because those supplies are reported under the reverse charge. The common traps are in our Cyprus VAT mistakes article.

Annual obligations once the company exists

The €350 annual levy is gone, but a Cyprus company still has more paperwork than a UK one — mainly because of the audit.

Obligation	Who you deal with	When	Typical cost
Annual return (form HE32) with financial statements	Registrar of Companies	Within 28 days of the return date	€20 filing fee; late filing €50 + €1 a day (max €150) + €20
Audit, or review for small companies	Licensed Cyprus auditor	Before the tax return	€1,000–€2,000 for a small company
Provisional tax (2 instalments)	Tax Department	31 July and 31 December	Based on estimated profit
Corporate tax return (TD4)	Tax Department	31 January, second year after the tax year	Usually in the accountant's fee
VAT returns (if registered)	Tax Department	Quarterly, by the 10th of the second month	€100–€200 per return
Payroll and Social Insurance (if paying salaries)	Social Insurance Services	Monthly	€20–€50 per employee per month
Bookkeeping	Your accountant	Monthly or quarterly	€80–€150 a month
Company secretary and registered office	Law firm or accountant	Annual	Quoted by the provider

Fees from the Registrar of Companies and PwC Worldwide Tax Summaries; professional fee ranges from Cyprus corporate service providers (2026). Our accountant introductions are on the accounting services page.

Audit: the cost UK founders don't expect

Every Cyprus company must have its financial statements checked by a licensed auditor, even a one-person consultancy. There is no UK-style small company audit exemption.

Small companies can opt for a cheaper review engagement instead of a full audit if they stay under a turnover limit and €500,000 of total assets for two consecutive years. Sources differ on the turnover limit: it was €200,000, and several Cyprus accounting firms report it rose to €300,000 for financial years starting on or after 6 February 2026. Ask your auditor which applies to you.

Budget €1,000–€2,000 a year for the audit or review of a small company, on top of bookkeeping. That is why a good Cyprus accountant matters from day one.

Opening the company bank account

The bank account is the slowest part of company formation in Cyprus. Expect 3–6 weeks from a complete application, and expect the bank to ask where the money comes from.

Yachts in Limassol marina at golden hour with city towers behind — Limassol marina at golden hour

A typical bank pack includes: certified English certificates, the Memorandum and Articles, a board resolution to open the account, passports and proof of address for every director and 25%+ shareholder, a business plan, and evidence of your source of funds (UK bank statements, tax returns, sale documents). Bank of Cyprus and Eurobank (which absorbed Hellenic Bank in 2025) are the two largest banks.

Most founders need to meet the bank at least once in person or by video. Our company bank account service covers the bank introduction and document pack.

Frequently asked questions

Yes. There is no nationality or residency requirement to own shares or act as a director, and a Cyprus lawyer can handle the whole formation remotely. For the tax benefits to hold, though, it has to be managed and controlled from Cyprus; a company run from the UK is also UK resident.

Next step

Ready to register your Cyprus company?

Tell us what the company will do and where you will live. We introduce you to a vetted Cyprus corporate lawyer and accountant, and we check the tax side with you first.

Get my company set up Start my relocation plan

Sources checked for this page

1.Registrar of Companies — Applying to incorporate a companyGovernment
2.Registrar of Companies — Forms & feesGovernment
3.Registrar of Companies — Types of companiesGovernment
4.Registrar of Companies — Late filing of annual returnsGovernment
5.businessincyprus.gov.cy — Start your businessGovernment
6.businessincyprus.gov.cy — Registering for income tax and VATGovernment
7.Cyprus Tax Department — Tax reform 2026 (Greek)Government
8.PwC Worldwide Tax Summaries — Cyprus, taxes on corporate incomeProfessional
9.PwC Worldwide Tax Summaries — Cyprus, tax administrationProfessional
10.PwC Worldwide Tax Summaries — Cyprus, other taxes (VAT, social insurance)Professional
11.PwC Worldwide Tax Summaries — Cyprus, deductionsProfessional
12.KPMG — Cyprus tax reform enacted, effective 1 January 2026Professional
13.Central Bank of Cyprus — Register of credit institutionsGovernment
14.PwC Worldwide Tax Summaries — Cyprus, corporate residenceProfessional
15.PwC Worldwide Tax Summaries — Cyprus, taxes on personal incomeProfessional
16.PwC Worldwide Tax Summaries — Cyprus, individual other taxes (social insurance, GeSY)Professional
17.Registrar of Companies — eSearch in the Business Entities RegistryGovernment

Written by

Jason

Founder, Paphos Advisor

British founder who moved his family from the UK to Paphos in 2025. I write down what I learned doing it properly — the tax, the residency and the living-here detail — and introduce people to the specialists I’d use myself.

How I research and fact-check

Company Formation in Cyprus: How to Register a Limited Company in 2026

Cyprus company formation in numbers

What you are actually setting up

Who can form a Cyprus company?

Company formation in Cyprus step by step

Approve the name

Prepare the documents

File with the Registrar

Get the certificates

Register for tax and open a bank account