Company Structure in Cyprus
Legal basis - Mixed (civil law and common law)
Legal framework - Company law
Company form - Private company limited by shares (Ltd.).
Responsibility - The shareholders' liability for the company is limited to the amount of their respective shareholdings.
Share capital - Cypriot companies have generally authorized and issued a share capital of € 1,000. However, there is no minimum paid-up share capital requirement. It can be denominated in EUR or in any other currency. Bearer shares are not permitted.
Shareholders - Public limited companies can be set up by a shareholder, who can be natural or legal persons, residents or non-residents, without limitation. The contact details of the shareholders are accessible to the public.
Administrators - At least one director, who can be a natural person or a legal person, resident or non-resident. A shareholder can be the entrepreneur. The contact details of the directors are accessible to the public.
Secretary - A secretary is required, who must be a natural person, resident or not, and will ensure compliance with legal and regulatory requirements.
Registered address - Limited liability companies must have a registered office address located in Cyprus, where the company must keep all statutory registers and other documents which must be available for examination.
General assembly - The company must hold an annual general meeting every year. No more than 15 months should elapse between one AGM and the next. The first AGM can take place within 18 months from the incorporation of the company.
Electronic signature - authorized.
Re-domiciliation - Incoming and outgoing redomiciliation is authorized.
Conformity - Limited liability companies are required to include financial statements audited or certified by officially authorized auditors or accountants and a statement in the tax return. These requirements also apply to businesses without taxable income or to dormant businesses.
Public limited companies are required to submit an annual report to the Registrar of Companies each year.
The company must prepare its annual report (HE.32) within 14 days of the Annual General Meeting and within 28 days from that date must submit it to the Registrar of Companies. Indeed, the annual report must be completed and filed with the registrar of companies within 42 days of the annual general meeting of the company.
All registered Cypriot companies are required to pay an annual fee of € 350 in order for the companies to be in good standing and remain registered in the Cypriot Companies Register with the Companies Registrar.
Key figures of companies in Cyprus
|Official name||Republic of Cyprus|
|Proper noun||Κυπριακή Δημοκρατία (el); Kıbrıs Cumhuriyeti (tr)|
|Population||1,219,051 inhabitants (2018)|
|Population growth||1.65 % / year|
|Density||131.78 inhabitants / km²|
|GDP||24.470 billion $USD (2018)|
|GDP / capita||28,159 $USD (2018)|
|GDP growth||3.90 % / year (2018)|
|Life expectancy||80.80 years old (2018)|
|Birth-rate||‰ 10.70 (2017)|
|Fertility rate||1.32 children / woman (2017)|
|Mortality rate||6.90 ‰ (2015)|
|Child mortality rate||1.30 ‰ (2017)|
|Literacy rate||99,86 % (2015)|
|Official languages||Greek, Turkish|
|Change||Euro (€ EUR)|
|HDI||0,873 / 1 (2018)|
|Nature of State||Republic|
|Head of state||President Níkos Anastasiádis|
|National Holiday||October 1 (independence of 1960)|
|Codes ISO||CY, CYP|
|Tourists||3,930,000 people (2018)|
A country cut in two
Cyprus is an island state located in the eastern Mediterranean Sea, in the Levantine basin, south of Turkey and east of Greece. Although Cyprus is geographically closer to the West Asian region, the country is culturally and politically attached to Europe and is a member of the European Union.
The Cypriot Republic is a member of the United Nations (1960), the British Commonwealth, the European Union (2004), the WTO, the OSCE, the Non-Aligned Movement and the International Organization of Francophonie. Cyprus joined the euro zone on 1er January 2008.
Tourism is one of the main components of the economy and accounts for around 13 % of GDP.
Since 1974, the northern part of the island, located beyond the UN-controlled Green Line, has been under Turkish military occupation, and in 1983, this territory proclaimed itself "Turkish Republic of Northern Cyprus" without that it be recognized by the international community, with the exception of Turkey.
Of the total population estimated at 1,219,051 people in 2018, 864,200 people are counted in the part controlled by the Cypriot government (south). The remainder, ie 354,851 inhabitants, is partly Turkish occupied in the north of the island.
The Turkish military occupation of the north of the island is one of the major blocking factors for Turkey's entry into the European Union.
Corporate Taxation in Cyprus
Corporate tax rate (IS)
|Global CIT rate (%)||12,5|
Corporate tax (IS) due dates
|CIT return deadline||March 31 of the second year following the relevant fiscal / calendar year.|
|CIT final payment due date||August 1 of the year following the fiscal / calendar year concerned.|
|Estimated due dates for CIT payments||Two equal installments due on July 31 and December 31 of the relevant tax / calendar year.|
Personal income tax rate (PPI)
|Global PIT rate (%)||35|
Personal income tax (PIT) due dates
|PIT return due date||Varies depending on the profile of the individual taxpayer.|
|IRP final payment due date||August 1 of the year following the fiscal year concerned.|
|PIT estimated due dates||July 31 of the current tax year|
Value added tax (VAT) rate
|Standard VAT rate (%)||19|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||Resident companies: 0/30 (only on “passive” interests) / 0;
Non-resident: 0/0/10 (only if the royalties collected on the rights used in Cyprus)
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||20|
|Tax rate for individual capital gains (%)||20|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||N / A|
|Gift tax rate (%)||Null if up to a third degree relative.|