Offshore Company in Cyprus

While Cyprus presents numerous advantages for offshore companies, cost remains a critical consideration for businesses. Fortunately, the expenses associated with offshore company formation in Cyprus are highly competitive compared to other jurisdictions.

Here’s a detailed breakdown of the costs involved:

1. Registration Fee: Around €400, paid as a one-time fee to the Cyprus Companies Registrar upon registration.
2. Annual License Fee: Approximately €350, payable annually to maintain the company’s good standing with the Registrar of Companies.
3. Professional Fees: Legal and accounting fees vary based on complexity, typically ranging from €1,000 to €2,500 for legal services and €500 to €2,000 annually for accounting. At Lexidy we can help you with all the process, contact us now to get a free consultation on your case.
4. Registered Office Fee: Annual fees vary based on office location and nature, typically ranging from €300 to €1,000.

1. Finding a lawyer

2. Applying for a company name at the registrar of companies (RCOR)

Businesses must file an application for company name approval with the Registrar of Companies and Official Receiver in Cyprus. This can be done directly by the applicants or indirectly through a lawyer or service provider.

However, it’s worth noting that as a customary practice, legal advisors in Cyprus often keep a selection of “shelf names” – company names already sanctioned by the Registrar. These names are provided to clients who prioritize speed over specific name selection. This allows applicants to secure an approved company name promptly.

3. Submission of all relevant document to the RCOR

The involvement of a lawyer or service provider is essential in preparing the necessary forms and facilitating the opening of a bank account based on the applicant’s collected information.

Documents needed from the applicant include:

1. A brief description of the company’s main objectives, unless using standard Memorandum and Articles of Association.
2. Details of nominal share capital and its distribution (with a minimum share capital of €25,629 for public companies).
3. Information on proposed directors and secretary, including names, addresses, and passport details.
4. Proposed registered address of the company.
5. Certified copies of passports of ultimate beneficial owners.
6. Bank or other references attesting to the good standing of ultimate beneficial owners.
7. Ownership chain of the Cyprus Company up to and including ultimate beneficial owners.
8. Any additional information as per KYC requirements, in compliance with Anti-Money Laundering Law and CBA guidelines.

Forms required by the Registrar include:

1. Declaration Form (HE1 form)
2. Declaration Form concerning registered office address (HE2 form)
3. Form detailing Company Directors and Secretary (HE3 form)
4. Original signed Memorandum and Articles of Association, attested by at least one witness for subscriber signatures, and signed by the lawyer who drafted them.

All relevant information and forms can be accessed on the Registrar of Companies website.

4. Incorporation of the company by RCOR

5. Company registration with the tax department and opening of a bank account where necessary

All companies are required to register with the Tax Department to obtain a tax identification number and a VAT registration number, as well as with the Social Insurance Services.

Employers are obligated to contribute to various funds (including Social Insurance, Annual Holidays with Pay, Redundancy, Human Resource Development, and Social Cohesion) for each employee earning at least €200 per week or €700 per month. Contributions, covering both the employer and employee shares, are paid monthly in arrears within one month from the end of each contribution month.

To register as an employer, the application form can be submitted electronically through the Point of Single Contact (PSC) (www.businessincyprus.gov.cy) Cyprus portal or physically to a District Social Insurance Office or Citizens Service Centre. Contact details are available in the relevant documents.

The application should include the following certificates:

• Copy of identity card, passport, or aliens registration certificate of the employer
• Copy of the certificate of incorporation and directors and secretary certificates (for limited companies)
• Copy of partnership certificates and partnership registration certificates (for partnerships)
• Declaration of Employers Registration form for employee recruitment.