Cyprus Company Formation Requirements for Foreigners
Cyprus has emerged as a premier destination for international entrepreneurs and companies, offering a business-friendly environment and a favorable tax system. For a foreigner, the process of forming a company is straightforward and efficient, provided you understand the legal and administrative requirements. This comprehensive guide will walk you through the essential steps, from choosing a legal structure to gathering all the necessary documents, ensuring a smooth and successful company formation in 2025. For a broader overview of starting a business on the island, you can read our ultimate checklist on The Ultimate Checklist for Starting a Business in Cyprus.
1. Choosing the Right Legal Structure
The first step for any foreigner looking to set up a business in Cyprus is to choose the appropriate legal structure. The most common type of company is a Limited Liability Company (LLC), which is the most popular choice for international ventures due to its flexibility and limited liability for shareholders. The company can be 100% owned by foreigners, and there is no minimum share capital requirement. You can find more information about this in our guide on Cyprus Company Registration: A Step-by-Step Guide 2025.
2. Key Requirements for Company Formation
To register a company in Cyprus, you will need to meet a number of legal requirements. It is highly recommended to engage a professional corporate services provider or a lawyer to assist you with the process, as they will ensure that all the documents are in order and that the process is legally compliant. You can find a professional to help with this in our directory of Professional Corporate Services.
Company Name
The proposed company name must be unique and not be identical or too similar to an existing company name. It is recommended to submit a few alternative names in order of preference to the Registrar of Companies to avoid any delays. The name must also not be offensive or misleading. Our guide on Choosing Your Cyprus Company Name provides more detail.
Directors and Company Secretary
A Cyprus company must have at least one director and a company secretary. The director can be a natural person or a legal entity. It is not mandatory for the director to be a resident of Cyprus, but it is highly recommended to have a local director to ensure that the company is managed and controlled from the island, which is important for tax residency. The company secretary is responsible for the administration and compliance of the company and must be a resident of Cyprus. You can explore our directory of all businesses on the island to find a good partner.
Registered Office and Shareholders
A company in Cyprus must have a registered office on the island. The registered office is the official address of the company and is used for all legal and administrative purposes. The company must also have at least one shareholder, and there is no minimum share capital requirement. You can find more information about this in our finance, banking, and investment section.
3. Required Documents for Foreigners
To register a company in Cyprus, you will need to provide a number of documents. The documents must be prepared by a professional corporate services provider or a lawyer. For more on the local business environment, you can check out our guide on The AI-Powered Marketer: Business Adviser.
Documents for Directors and Shareholders
- Passport: A certified copy of the passport of all directors and shareholders.
- Proof of Address: A certified copy of a utility bill or a bank statement that shows the address of all directors and shareholders.
- Bank Reference Letter: A reference letter from a reputable bank for all directors and shareholders.
- Curriculum Vitae (CV): A CV of all directors and shareholders.
Company Documents
- Memorandum and Articles of Association: These documents outline the company's purpose, share capital, and internal rules.
- Form HE1, HE2, and HE3: These are the official forms for company registration that are submitted to the Registrar of Companies.
- Proof of Registered Office: A document that shows the address of the company's registered office in Cyprus. You can also explore our guide on Cyprus Shelf Companies.
4. The Registration Process and Timeline
The process of company registration in Cyprus typically takes around two to four weeks, provided that all the necessary documents are in order. The name approval process takes a few business days, and the rest of the process takes a few weeks. It is always best to work with a professional to ensure a smooth and efficient process. For more on the local business environment, you can check out our guide on Costs to Set Up a Limited Company in Cyprus.
