Supporting business expansion to Cyprus

How to open a company in Cyprus: 5 basic steps 

If you want to open a company in Cyprus and employ non-EU employees, you need to go through the following steps:  

1. Registering the company.
2. Opening an account for the company (it is important to choose the bank carefully, as some banks may refuse to consider the application from companies with beneficiaries from CIS without EU residence permit).
3. Submitting an application for foreign company status (this status is required to attract non-EU foreigners for employment). Since 2022 this procedure has been simplified.
4. Hiring employees.
5. If applicable - obtaining IP-box.
   • IP-box regime is a preferential tax regime for companies used to stimulate research and development activities. It also applies to companies which create computer programs.

Simplification of rules to obtain foreign status for companies in Cyprus

• Shareholders of the company are foreigners with more than 50% participation.
• The company must have leased office space (not a nominal office), preferably for at least 1 year period.
• At least 30% of key employees come from the EU.
• Other requirements - mostly organizational (for example, if the company is not the first year in operation, it is required to have an audit report, Tax Clearance Certificate, etc.).

Our services 

1. Opening of a company.
   The package of services to open a company without the status of a foreign company includes:
   • registration of the company.
   • a full package of constituent (foundation) documents.
   • nominal services (director, secretary, registration office (not for rent), if necessary - a nominal shareholder of the company).
   • if necessary - power of attorney to the ultimate beneficial owner.
2. Support of account opening.
   • We will assist you with the opening of an account in a bank, we will advise on available options, including the emerging restrictions for the beneficiaries from Belarus in consideration.
     The procedure may take 1-3 months (the final term will depend on the banks compliance procedure).
3. Support in obtaining foreign company status (for hiring foreigners).
   • We undertake the responsibility for preparation of basic documents, applications, communication with the state authorities.
     In addition, on request our Cypriot lawyers can undertake the work on the lease of office premises.
4. Support of employees’ recruitment for a foreign company.
   • Our services include collection and preparation of documents, applications, support of other recruitment issues.
     The term of registration of one employee is 1-2 weeks + preparatory activities (can be longer because of COVID).
5. Advising on the application of IP-box, support of the application for IP-box.
6. Advising on VAT issues and peculiarities.
7. Advising on currency regulation issues.
8. Drafting of agreements for the assignment or granting of intellectual property rights, software development agreements by the Cyprus office specialists. Preparation of other contracts with customers/contractors.