Cyprus is one of the few EU countries where you can incorporate a company entirely in English, under a legal system derived from English common law. The result is a structure most international founders find familiar — the private limited company, known as a Cyprus LTD — combined with a 12.5% corporate tax rate and full EU market access. This guide covers the steps from name reservation to opening your doors.
LTD or self-employed?
| Cyprus LTD | Self-employed | |
|---|---|---|
| Limited liability | Yes | No |
| Minimum capital | None required | None |
| Corporate tax rate | 12.5% on net profit | Personal income tax rates |
| Setup via | Registrar of Companies | Tax Department |
| Registration time | 5–10 days (1–2 expedited) | 1–3 days |
A Cyprus LTD makes sense if you want liability protection, a professional corporate structure, or access to Cyprus’s extensive double-tax treaty network. Self-employed registration is simpler and suits sole traders or those testing a business idea before committing to a corporate structure.
Step 1 — Reserve your company name
Submit a name reservation request (Form HE1) to the Department of Registrar of Companies and Official Receiver (DRCOR). This can be done through a Cypriot lawyer, a formation agent, or directly via the DRCOR e-filing portal.
Name approval typically takes 3–5 working days. You can suggest up to three names in priority order. The name must be unique and not misleading — DRCOR checks against existing registrations automatically.
Step 2 — File incorporation documents
Once the name is approved, prepare and file the following with DRCOR:
- Memorandum and Articles of Association — the company’s constitutional documents, typically drafted by a Cypriot lawyer using standard templates
- Form HE1 — your approved name reservation
- Form HE4 — declaration of the company’s registered office address in Cyprus (a physical address, not a PO box)
A company secretary is a legal requirement. Under Cyprus Companies Law, Cap. 113, every private company must appoint a secretary. The secretary must be resident in Cyprus or a registered legal entity there. Most founders use the same law firm or formation agent that drafted the documents.
Registration fees are calculated on nominal share capital. For €1,000 in share capital — the most common starting point — the fee is approximately €105. Expedited processing (1–2 working days) costs an additional ~€105.
After filing, DRCOR issues a Certificate of Incorporation and assigns your company registration number. Standard processing takes 5–10 working days.
Step 3 — Get your Tax Identification Code (TIC)
Every company in Cyprus needs a Tax Identification Code (TIC) from the Tax Department. Register online via the Cyprus Tax Department portal (taxisnet.mof.gov.cy) or through a tax representative.
You will need:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Details of directors and shareholders
The TIC is a 9-digit number and serves as your company’s primary identifier for all tax filings. Cyprus’s corporate income tax rate is 12.5%, applied to net profits after allowable deductions.
Step 4 — Register for VAT (if applicable)
VAT registration in Cyprus is mandatory when your taxable annual turnover exceeds €15,600. You can also register voluntarily below this threshold.
Register with the VAT Service (part of the Tax Department) via the Taxisnet portal. Your Cyprus VAT number takes the format CY + 8 digits + one letter — for example, CY12345678L.
If you provide services to VAT-registered businesses in other EU countries, you need a VAT number regardless of your local turnover — for reverse-charge invoicing under EU VAT rules.
Step 5 — Open a business bank account
Cyprus banks require proof of beneficial ownership, director identity documents, and a description of your business activity. Due to enhanced AML requirements introduced over the past few years, corporate account opening is more thorough than in most other EU countries — expect the process to take 1–4 weeks at established banks.
Local banks: Bank of Cyprus, Hellenic Bank, Eurobank Cyprus.
Neobank alternatives: Revolut Business and Wise Business are widely used by Cyprus-registered companies and open significantly faster. Confirm your specific business type is supported before relying on them as your primary account.
Step 6 — Register with Social Insurance Services
If you draw a salary as a director, or if the company employs anyone, you must register with the Social Insurance Services (SIS).
- Employee contribution: 8.3% of gross salary
- Employer contribution: 8.3% of gross salary
- Additional contributions apply to the Redundancy Fund, Human Resource Development Authority, and Social Cohesion Fund — check current rates with the SIS
Both the employee and employer contributions are capped at a maximum earnings ceiling that the SIS adjusts annually.
For self-employed individuals not operating through a company, SIS registration is done directly — and contributions are calculated on declared income rather than payroll.
Annual obligations
Once incorporated, a Cyprus LTD has recurring requirements:
| Obligation | Deadline | Notes |
|---|---|---|
| Annual levy | By 30 June each year | €350 payable to DRCOR — non-payment for two years risks striking off |
| Annual return (HE32) | Within 28 days of the AGM | Filed with DRCOR |
| Corporate tax return | By 31 March (following year) | Provisional tax payments due in August and December |
| Audited financial statements | Annually | Required for most companies |
The €350 annual levy is the most critical deadline to track. Missing it for two consecutive years can result in the company being struck off the register.
Timeline overview
| Step | Typical duration |
|---|---|
| Name reservation (HE1) | 3–5 days |
| Prepare incorporation documents | 2–5 days (lawyer dependent) |
| DRCOR registration | 5–10 days (1–2 expedited) |
| Tax registration (TIC) | 2–5 days |
| VAT registration | 3–10 days |
| Open bank account | 5–20 days |
| Total | 3–6 weeks |
In Billino
Once you have your TIC — and your VAT number if applicable — add them to your sender profile in Billino. Both appear on every invoice you send, as required under Cyprus law.
