Business Structures in Cyprus
Establishing Your Business with Legal Confidence
Cyprus has evolved into a leading international business hub, hosting thousands of foreign-owned and multinational companies.
Its favorable tax regime, strategic location, and EU-compliant legal system make it one of the most attractive jurisdictions for establishing and managing international business operations.
The Law Office of George C. Stylianou provides comprehensive legal and corporate services to assist clients in selecting and forming the most suitable business structure for their activities in Cyprus — ensuring full compliance, efficiency, and strategic advantage.
🇨🇾 Cyprus — An International Business Hub
Cyprus offers an ideal environment for:
- Headquarters establishment for multinational corporations
- Investment holding and management structures
- Financial, shipping, and technology companies
- Regional offices serving Europe, the Middle East, and Asia
Through strategic incorporation and professional management of Cypriot entities, investors enjoy:
- Legal certainty under Common Law
- Low and transparent taxation
- Access to EU markets and Double Tax Treaties
- Efficient corporate setup procedures
- Full foreign ownership and repatriation of profits
🏢 1. Private Limited Liability Company (Ltd)
The Private Limited Liability Company (Ltd) is the most common and flexible form of business entity in Cyprus. It is suitable for both local entrepreneurs and foreign investors.
Key Features
- Legal personality separate from its shareholders
- Liability of shareholders limited to their investment
- Minimum one shareholder and one director (individual or corporate)
- Share capital can start from €1,000
- 100% foreign ownership permitted
- Annual audited financial statements required
- Taxed at 12.5% corporate tax on worldwide income (if managed in Cyprus)
Advantages
- Ideal for trading, consulting, investment, or holding activities
- Can own assets, property, and bank accounts globally
- Can be structured as a subsidiary or holding vehicle
- Eligible for EU directives and tax treaties
Our firm assists with incorporation, drafting of the Memorandum & Articles of Association, director and shareholder appointments, and all post-registration filings.
🏦 2. Cyprus Holding Company
A Cyprus Holding Company is widely used for international tax planning and asset management. It acts as a parent company holding shares in foreign subsidiaries or assets.
Tax and Legal Advantages
- No withholding tax on dividends received from abroad (subject to conditions)
- No tax on dividend distribution to non-resident shareholders
- No capital gains tax on disposal of shares or subsidiaries
- Access to over 60 Double Tax Treaties
- Participation exemption on profits from qualifying foreign entities
- Substance-based planning to meet international standards
Cyprus holding companies are often used for cross-border structuring, group consolidation, and profit repatriation.
Our firm provides full legal, tax, and corporate advisory for setting up and managing Cyprus holding entities.
🌍 3. Cyprus Company with Foreign Interest
A Cyprus Company of Foreign Interest is a limited liability company in which more than 50% of the shares are owned by non-Cypriot nationals or foreign legal entities.
Benefits
- Eligible to employ third-country nationals under fast-track immigration procedures
- Full foreign ownership and EU law protection
- Access to low tax rates and international banking
- Recognition as a bona fide international business by Cypriot authorities
To qualify, the company must maintain:
- Physical office premises in Cyprus
- A minimum investment of €200,000 in local operations
- Genuine economic substance and activities in Cyprus
Our firm provides turnkey assistance — from company incorporation to registration with the Civil Registry and Migration Department and work permit applications for foreign employees.
🛳️ 4. Shipping and Maritime Companies
Cyprus is one of the world’s top ship management and registration centers.
A Cyprus Shipping Company may be incorporated under the Merchant Shipping (Registration of Ships, Sales, and Mortgages) Law, allowing for the registration of vessels under the Cyprus flag.
Advantages
- EU-approved Tonnage Tax System (TTS)
- No tax on profits from ship operations or dividends paid from such profits
- One of the largest EU ship registries
- Recognized maritime jurisdiction with advanced infrastructure
Our firm provides legal support for ship registration, mortgage, ownership structuring, and compliance with maritime regulations.
🧠 5. Intellectual Property (IP) Holding Company
Cyprus offers one of the most favorable Intellectual Property (IP) regimes in Europe.
An IP Holding Company can be used to own, manage, and license intellectual property rights (trademarks, patents, copyrights, software, etc.).
Tax Advantages
- 80% of qualifying IP profits are exempt from tax under the Cyprus IP Box Regime
- Effective tax rate as low as 2.5% on IP-related income
- Full compliance with OECD’s Nexus approach
Our firm assists with IP registration, legal protection, licensing agreements, and IP tax optimization through properly structured Cyprus entities.
📑 Our Services Include
- Legal advice on entity selection and structure optimization
- Company incorporation and registration with authorities
- Preparation of corporate documents (Memorandum, Articles, Resolutions)
- Tax and VAT registration and ongoing compliance
- Bank account opening and financial administration
- Provision of Registered Office, Nominee Directors, and Shareholders
- Corporate secretarial and accounting services
- Legal assistance in re-domiciliation and cross-border mergers
- Ongoing legal support and representation for operations in Cyprus
Our multidisciplinary team ensures your business is properly structured, compliant, and efficient — from setup to expansion.
⚖️ Why Choose the Law Office of George C. Stylianou
- Over 35 years of experience in corporate and investment law
- Deep expertise in Cyprus company formation and management
- Trusted by international investors, family offices, and corporations
- Integrated legal, tax, and administrative support
- Commitment to confidentiality, professionalism, and accuracy
We provide end-to-end solutions that combine legal security, strategic tax planning, and efficient corporate administration.
📞 Contact Us
For professional legal advice on establishing your business or corporate structure in Cyprus, contact:
The Law Office of George C. Stylianou
📍 56 John Kennedy Avenue, Flat 7, Nicosia 1076, Cyprus
📞 +357 99 620396 | +357 22 421173
📠 +357 22 426390
📧 stilianou.y@cytanet.com.cy
🌐 www.visit-invest-cyprus.com
Your trusted legal advisor for company formation, investment, and international business operations in Cyprus.
GEORGE C. STYLIANOU LAW OFFICE 