A company name can be in any language, provided it is expressed in Roman characters, and must end in "Limited" or "Ltd." The company must maintain a registered office in Cyprus. The share capital can be denominated in any currency, with at least one share issued upon incorporation. A minimum of one shareholder is required, who can be either a natural person or a corporate entity, and nominee shareholders are permitted. Similarly, at least one director is required, who may be an individual or a corporation, and can reside anywhere in the world—though resident directors are necessary for tax treaty access. A director may also be a shareholder.
Shareholder and director meetings may be held anywhere, either in person or virtually, with an annual general meeting of shareholders required. A company secretary must be appointed upon incorporation. Financial statements must be audited by a registered auditor based in Cyprus. Annual filing requirements include submitting an annual return and financial statements to the Registrar of Companies, as well as a tax return to the Tax Department.
Cyprus tax resident companies are subject to a 12.5% income tax on worldwide taxable income, though certain income types—such as dividends and profits from share sales—are exempt. Capital gains are only taxed if derived from the sale of Cypriot real estate. Companies engaged in R&D for intellectual property may qualify for an 80% tax exemption, reducing the effective tax rate to 2.5%. Cyprus’s extensive double tax treaty network is accessible to tax-resident companies, and no withholding tax applies to dividends paid to non-resident shareholders.
VAT registration is required if the company’s annual turnover exceeds €12,000, with a standard rate of 19%. Regarding foreign staff, companies majority-owned by non-EU citizens may apply for residence permits for their non-EU employees and families, provided certain conditions are met. The company must maintain a physical office in Cyprus, and non-EU shareholders must invest at least €200,000. Permits can be obtained for up to 5 directors and 10 middle-management executives, with additional non-EU hires possible under specific circumstances.