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How to set up a company in Cyprus: a plain-English guide (2026)
General information, not tax or legal advice. Company formation in Cyprus must involve a Cyprus lawyer, and tax residency and substance depend on your facts. Always check your own situation with a licensed professional before you set up a company.
1. Steps to register a Cyprus company
Most people set up a private limited company with shares (Ltd). It must have between 1 and 50 members (shareholders), and there is no minimum share capital. Registration is with the Department of Registrar of Companies and Intellectual Property.
- Name approval. Apply online through the Registrar's e-filing system. The fee is €10 per proposed name, plus €20 per name for the fast track.
- Memorandum and articles of association. A Cyprus lawyer prepares them, signed in Greek. You can adopt the standard Table A articles. The lawyer also swears the statutory declaration (form HE1) before the court, so a do-it-yourself filing is not possible.
- Registered office, directors and secretary. The company needs a registered office address in Cyprus (form HE2) and must notify its first directors and secretary (form HE3).
- Incorporation filing. File HE1, HE2, HE3 and the memorandum and articles online or by hand/post. The fee is €165 (€235 for a company without share capital), plus €100 for the fast track. Certified copies of the incorporation certificates cost €120 (€130 if you do not submit a copy of the memorandum and articles).
- Certificate of incorporation is issued by the Registrar once the filing is approved.
2. After incorporation
- Beneficial owners (UBO register): register the company's beneficial owners electronically within 90 days of incorporation, report changes within 45 days, and confirm the details every year between 1 October and 31 December.
- Tax registration: register the company with the Tax Department online through the Tax For All (TFA) portal to get a tax identification number (TIN).
- VAT: registration is compulsory once taxable supplies over the previous 12 months exceed €15,600 (or are expected to exceed it in the next 30 days). Some intra-EU supplies require registration whatever the turnover. You need a TIN first, then file form T.D.1101. VAT returns are quarterly, and the standard rate is 19%.
- Social insurance: a company that pays salaries must register as an employer with Social Insurance Services before taking on staff.
3. Typical timeline
The Registrar offers a paid fast track for both name approval and incorporation, but it does not publish fixed processing times. The total time also depends on how quickly the lawyer prepares the documents and how quickly tax and bank accounts are set up, so the timeline varies. Ask your lawyer for a realistic estimate.
4. Ongoing obligations every year
| Obligation | Detail |
|---|
| Annual levy | €350 by 30 June. Paying by 31 August adds 10%; paying within five months of 30 June adds 30%. |
| Annual return (HE32) | €20, filed online for private companies. Late filing costs up to €150, plus a €20 fee. |
| Audited financial statements | Companies prepare audited accounts, and the tax return is based on them. A review option for some small companies is to confirm with an auditor. |
| Corporate tax return | From tax year 2026, due by 31 January of the second year after the tax year (for example, 2026 by 31 January 2028). The final tax payment is due on the same date. |
| Provisional tax | Two equal instalments on 31 July and 31 December of the tax year. |
| VAT returns | Quarterly, if registered. Payment by the 10th day of the second month after the quarter ends. |
| Beneficial owners | Confirm every year between 1 October and 31 December. |
5. Corporate tax in 2026
- The corporate tax rate is 15% from 1 January 2026 (12.5% up to 31 December 2025).
- No separate reduced rate for small companies was found in our sources.
- Gains on the sale of shares and other "titles" are exempt. Most dividends received from other companies are exempt.
- Tax losses can be carried forward for 7 years (5 years before the reform).
- Large groups with consolidated turnover of at least €750 million are subject to the 15% global minimum tax (Pillar Two).
- Crypto disposal gains of companies are taxed at a flat 8%. See our crypto tax guide.
6. Dividends and deemed dividend distribution after the reform
- Deemed dividend distribution (DDD) has been abolished for profits earned from 1 January 2026. Under the old rule, SDC could be charged on part of the profits a company had not paid out as dividends. Transitional rules still apply to profits of earlier years.
- When a company pays a real dividend to a Cyprus tax resident who is also Cyprus domiciled, SDC is 5% on profits from 2026 onwards (17% on profits of earlier years).
- Non-dom residents and non-residents pay no SDC on dividends. See our moving to Cyprus guide for non-dom status.
- GHS at 2.65% applies to dividends received by Cyprus tax resident individuals.
- A 5% withholding tax applies to dividends paid to companies resident in low-tax jurisdictions.
7. Tax residency and substance
- A company is Cyprus tax resident if it is managed and controlled in Cyprus. From 2026, a company incorporated in Cyprus is also Cyprus tax resident by default, unless a double tax treaty says otherwise.
- Being resident on paper is not always enough. Other countries, treaty tie-breaker rules and anti-avoidance rules look at where real decisions are taken and where the business actually operates. Typical points include where the board meets, where the directors live and whether there are local staff and an office.
- There is no single legal checklist for "substance", so how much your company needs depends on what it does. This is a key point to confirm with a professional.
8. Costs
The official Registrar fees are listed above, starting at €10 for name approval and €165 for incorporation. Lawyer fees for drafting and filing, registered office and secretary services, accounting and audit all vary by provider and by how complex the company is, so ask for written quotes.
Need help with your situation?
Use the enquiry chatbot on our homepage and click "Get matched free" to be matched with an independent licensed professional (lawyer or accountant) who can form and run your company. Cyprus Tax Connect does not give tax or legal advice and does not form companies itself. See our legal disclosure and privacy notice.
Related guides
See also our moving to Cyprus tax guide, the Cyprus income tax calculator 2026, Cyprus property taxes 2026 and Cyprus crypto taxes 2026, or go back to the Cyprus Tax Connect homepage.
Sources
Last reviewed 18 October 2026.