# Cyprus Company Cost and Timeline: setup, annual cost, weeks to trade

> What a Cyprus private limited company costs to set up and to run each year, and how many weeks until you can trade. 2026 Registrar fees, mandatory annual filings, a cost calculator and a week-by-week timeline, reviewed by chartered accountants in Nicosia.

Publisher: Aqualis Ltd, Nicosia, CY. Members of ICPAC and ICAEW.
Last reviewed: 2026-09-20. Figures marked "Confirm" await adviser sign-off.
Canonical URL: https://cyprussetupcost.com/

## Short answer

Forming a Cyprus private limited company costs €175 in Registrar fees (€10 name approval, €165 incorporation), or €295 on the accelerated route. There is no capital duty, no minimum share capital, no stamp duty since 2026 and no annual levy since 2024. With professional fees, setup typically comes to €2,000 to €4,500. Running the company usually costs €3,000 to €9,000 a year: registered office, secretary, bookkeeping, accounts, an audit or review, and a €20 annual return. Incorporation takes one to three weeks. The bank account takes four to eight more, and sets the date you can trade. Profits are taxed at 15%.

## Cyprus company formation and annual compliance rules, 2026

- **Registrar fees, standard**: €10 for each name submitted for approval, and €165 to incorporate a private company with share capital (In law)
- **Registrar fees, accelerated**: €30 for accelerated name approval, and €100 on top of the €165 for accelerated incorporation, so €295 in total (In law)
- **Capital duty**: None found. The Registrar's published fee is flat whatever the share capital. We could not find an official statement of repeal, so the adviser should confirm (Confirm)
- **Stamp duty**: Abolished from 1 January 2026 for company documents and most contracts. Limited exceptions remain, such as real estate, banking and insurance (In law)
- **Minimum share capital**: No statutory minimum for a private company. €1,000 is customary, and it need not be paid into a bank before incorporation (In law)
- **Registered office**: Compulsory, and it must be a physical address in Cyprus. The statutory registers are kept there (In law)
- **Directors, shareholders and secretary**: At least one director, one shareholder (up to 50) and a secretary. Any nationality or residence. A sole director can also be secretary only in a single-member company (In law)
- **Corporation tax**: 15% of taxable profit from 1 January 2026, up from 12.5%. Losses carry forward seven years (In law)
- **Tax residence**: From 2026 a company incorporated in Cyprus is Cyprus tax resident by default, unless a double tax treaty provides otherwise. A company managed and controlled in Cyprus is also resident (In law)
- **Annual return, form HE32**: €20 filing fee. First return within 18 months of incorporation, then once every year, filed within 28 days of its made-up date with the financial statements attached (In law)
- **Late annual return**: €50, then €1 a day for the first six months and €2 a day after, capped at €500 per return. One source quotes a lower starting amount. Persistent failure leads to strike-off (Confirm)
- **Annual company levy**: The old €350 levy is abolished for 2024 onwards and has not returned. Levies unpaid for 2023 and earlier remain collectable (In law)
- **Beneficial owner register**: File within 90 days of incorporation, report changes within 45 days, reconfirm every year between 1 October and 31 December. Published penalties differ: €200 plus €100 a day to €20,000, or €100 plus €50 a day to €5,000 (Confirm)
- **Audit or review**: Every company files financial statements. A small private company with turnover under €300,000 (was €200,000) and total assets under €500,000, for two years running, may use a review engagement instead of a full audit, for financial years starting on or after 6 February 2026 (Confirm)
- **Corporate tax return**: For tax year 2026 onwards, due by 31 January of the second year after, so 31 January 2028 for 2026. The 2025 return is due by 31 March 2027. Provisional tax is paid on 31 July and 31 December (In law)
- **VAT and bank account**: VAT registration is compulsory above €15,600 of taxable sales in twelve months. A Cyprus bank account typically takes three to eight weeks, and up to three months for complex ownership (Confirm)

## How to form a Cyprus private limited company

1. **Due diligence and name.** Your adviser verifies every owner and director, as anti-money-laundering law requires, and submits the company name to the Registrar for approval.
2. **Documents and incorporation.** The memorandum and articles are drafted and signed, then filed with forms HE1, HE2 and HE3. The Registrar examines the file and issues the certificate of incorporation.
3. **Certificates, tax number and registers.** Certified copies of the corporate certificates are ordered, the company is registered with the Tax Department for its tax identification number, and the statutory registers are written up.
4. **Bank account and VAT.** The bank application goes in with the full file. VAT registration is filed in parallel if the company needs a number before its first invoice. Trading starts when both are live.

## Free tools on this page

- **Cyprus company setup and annual cost calculator**: Itemises the one-off cost of forming a Cyprus private limited company and the cost of running it each year, from fixed 2026 Registrar fees and editable professional fees. Returns setup cost, annual cost, first-year total, and which items are mandatory and which optional.
- **Cyprus company formation timeline builder**: Builds a week-by-week programme for forming a Cyprus company from a chosen start date: due diligence, name approval, documents, Registrar incorporation, certificates and tax number, bank account and VAT registration. Shows start and end dates for each stage, the critical path and the realistic date trading can start.
- **Cyprus substance self-check**: Scores a Cyprus company out of 100 on ten management and presence factors, including resident directors, board meetings in Cyprus, office, staff, bank account and records. Returns a risk band and the three most valuable gaps to close.

## Questions and answers

### What is the minimum share capital for a Cyprus company?

There is none for a private limited company. Most are formed with €1,000 divided into €1 shares, and the money does not need to be deposited before incorporation. There is no capital duty on it. A public company is different and needs at least €25,629.

### Can I be the only director and shareholder of a Cyprus company?

Yes. One person can be the sole shareholder and sole director, whatever their nationality or country of residence. In a single-member company the sole director may also act as secretary. In practice most foreign founders appoint their service provider as secretary, because the secretary has to deal with the Registrar in Cyprus.

### Do I need to visit Cyprus to set up a company?

Not to incorporate. Documents can be signed abroad and couriered, and identity is verified from certified copies or by video. The bank is the exception: some Cyprus banks want to meet the signatories or the main owner, so ask before you choose one. If you want the company to have real substance, you will be in Cyprus regularly anyway.

### What do nominee directors and shareholders in Cyprus actually do, and what are the limits?

A nominee shareholder holds shares on trust for you, which keeps your name off the public share register. It does not hide you from the beneficial owner register, the bank or the tax authorities. A nominee director sits on the board. If that person only signs what you send, foreign tax authorities will look through the arrangement. Nominees are optional, they cost €2,000 to €3,500 a year for a director, and they are not a substitute for real management in Cyprus.

### Is it faster to buy a Cyprus shelf company?

Only by a few days. You get a company number immediately, but the transfer of shares, the change of officers and the new beneficial owner filings still take time and money. The bank checks the new owners exactly as it would for a new company, so the date you can trade hardly moves. With accelerated incorporation taking about a week, a new company is usually the better choice.

### How long does it take to open a Cyprus business bank account?

Three to four weeks for a simple company owned by one or two individuals with a clear source of funds. Six to eight weeks where a shareholder is a company or the business is in a sector banks treat as higher risk. Three months is not unknown. The clock only starts once the company exists and its certificates are issued.

### Do all Cyprus companies need an audit?

Every Cyprus company must prepare financial statements and have them examined by a licensed auditor, including dormant ones. A small private company can use a lighter review engagement instead of a full audit if its turnover is under €300,000 and its total assets are under €500,000 for two consecutive years. The €300,000 figure applies to financial years starting on or after 6 February 2026, and was €200,000 before. Companies that must prepare consolidated accounts, and regulated businesses, cannot use the review option.

### What is the penalty for filing a Cyprus annual return late?

The annual return, form HE32, costs €20 to file. Late filing brings a penalty that starts at about €50 and grows by €1 a day for six months, then €2 a day, up to €500 for each return. The larger risk is that the Registrar strikes off a company that ignores its returns. Reinstating it afterwards needs a court order or an administrative application, and costs far more than the filings would have.

### How do I close a Cyprus company, and what does it cost?

There are two routes. Strike-off is for a company with no assets or debts. The directors apply to the Registrar, tax clearance is obtained, and the company is removed after about six to twelve months. Firms typically charge around €1,500 to €2,000. A members' voluntary liquidation uses a licensed liquidator, takes a year or more, and typically costs €3,500 upwards. Liquidation is final. A struck-off company can be restored by court order, which matters if a forgotten asset or creditor appears. All returns and accounts must be up to date first.

### Can I move my existing company to Cyprus instead of forming a new one?

Often, yes. Cyprus allows a foreign company to transfer its registered office here and continue as the same legal entity, keeping its contracts, history and bank relationships, provided the law of the country it is leaving allows it. It usually takes several months and needs solvency statements and creditor notices. It suits companies with valuable contracts or licences. For a young business, a new Cyprus company and a transfer of the trade is usually quicker.

### Is 15% the real tax rate for a Cyprus company?

It is the headline rate on taxable profit from 1 January 2026. The effective rate is often lower. Dividends received and gains on selling shares are generally exempt, which is why holding companies pay little. Qualifying intellectual property income can benefit from an 80% deduction. Dividends paid to non-resident shareholders carry no withholding tax in most cases. What you pay personally depends on where you live, not where the company is.

### What hidden costs do people miss when setting up a Cyprus company?

Six come up again and again. The audit or review, which many founders from the UK or the US do not expect for a small company. Certified and apostilled documents for every owner. Bank charges and minimum balances. 19% VAT on professional fees, which a holding company cannot recover. Employer social insurance of roughly 15% on top of any salary. And the cost of real substance, such as an office and a resident director, if your home tax authority is likely to ask.

### Does a Cyprus company have to register for VAT straight away?

No. Registration is compulsory once taxable sales pass €15,600 in twelve months, or from the first invoice if you supply services to businesses in other EU countries. Many trading companies register voluntarily at the start so that they can recover VAT on setup costs. A pure holding company that only receives dividends cannot register at all.

## Contact

Aqualis Ltd, https://www.aqualis.com.cy