Company Formation in Cyprus

Yes, in Cyprus, the company name must be unique and cannot be confused with existing names. Certain terms that indicate governmental or royal affiliation, or suggest specific activities (such as Bank, Insurance, Trust), require special approvals or are entirely prohibited. The company name must be submitted for approval to the Cypriot company register before registration.

Under Cypriot law, there are various types of trading companies suitable for different business needs and structures. The main types are:

1. Private Limited Company (Ltd): This is the most common form for small to medium-sized businesses. In this company form, the liability of shareholders is limited to the amount they have paid for their shares. A private limited company may have no more than 50 shareholders and cannot publicly offer its shares for sale.
2. Public Limited Company (PLC): This form is suitable for larger companies that want to offer their shares to the public. There is no restriction on the maximum number of shareholders. A PLC must have a minimum capital and meet certain regulatory requirements.
3. General Partnership (OHG): In this company form, all partners have unlimited personal liability for the debts and obligations of the partnership. The partners run the business together under a specified name.
4. Limited Partnership (KG): This form consists of one or more general partners who have unlimited liability, and one or more limited partners whose liability is limited to their contribution to the partnership.
5. Sole Proprietorship: This is the simplest form of business, where one individual is solely responsible for the company, including all debts and obligations. The owner and the company are not legally separate.
6. Branches of Overseas Companies: Foreign companies can register a branch in Cyprus, which operates as part of the parent company but conducts business in Cyprus.
7. European Company (Societas Europaea, SE): An SE is a company form recognized in all EU member states, allowing companies to operate within the EU and hire employees from various member states while benefiting from a single set of rules and a single legal structure.

Each of these company forms has specific features, advantages, and regulatory requirements that must be considered when choosing the most suitable form for a business venture.

For the formation of a Cyprus Ltd, you need:

• Three name proposals (priority 1 to 3) for your new company.
• Copies of the passports of all future owners (shareholders) and managers (directors).
• Copies of the passports of all future owners (shareholders) and directors.
• Information about the business scope and planned activities of the company.

The requirements may vary, but you often need:

• Copies of the passport.
• Proof of current residence, e.g., a recent electricity bill.
• Details of the scope and activities of the Cyprus Ltd.
• A bank reference in English.
• Bank statements from the last six months.
• Information about the expected transactions of the account.
• A corporate account can only be applied for after the formation of the Cyprus Ltd, and any international bank that opens a business account for a Cyprus Ltd can be used.

Yes, for the operation of a Cyprus Ltd, the management and control (Management & Control) must be based in Cyprus. If you cannot assume this role due to your residence outside of Cyprus, the appointment of a nominee director is necessary. This service can be provided by our firm.

Since 2023, it is required that you pay yourself a minimum monthly salary of €940 as the director of your Ltd, on which social contributions amounting to a total of 20.3% (employer’s share 12% plus employee’s share 8.3%) are to be paid.

The entire formation process takes approximately 2 to 4 weeks, depending on the Cypriot authorities and the setting up of a bank account. During the main holiday months of July and August, the process may take longer.