• About Cyprus
• Company Formation
  Steps to Form a Company Company Tax Law Costs and Legal Fees
• Cyrpus for Expats
• Domicile and Tax Residency

Cyprus is an attractive destination for entrepreneurs looking to set up a business due to its favorable tax environment, strategic location, and simple incorporation process. Whether you're establishing a small startup or an international branch, understanding the costs and legal fees involved is essential to make informed decisions. The costs to setup a Limited Company in Cyprus in 2025 involves annual service fees for maintaining the company, accounting fees, annual government levy and fees for filing the annual return. Our team will help you in all aspects of your Cyprus company formation process. The company will be incorporated within 7-10 days.

1. Initial Setup Costs

- Company Registration Fees: The basic cost to register a company in Cyprus includes the payment of government fees. These fees are set at €500 for the registration of a limited liability company (Ltd), which is the most common type of business entity.

- Company Name Reservation: Before registering a company, you must reserve your company name with the Registrar of Companies. This service costs €50.

- Notary Fees (if applicable): While not mandatory, some entrepreneurs may choose to have their company’s Memorandum and Articles of Association notarized or translated into english. This can cost around €200 to €350, depending on the complexity of the document.

2. Legal Fees

Legal fees are an essential part of the process, especially for ensuring your company complies with local regulations, tax laws, and other legal requirements.

- Drafting the Memorandum and Articles of Association: The Memorandum and Articles of Association are foundational documents that govern the company's operation. To eliminate barriers to trade and open business, our legal fees for drafting and reviewing these documents are set at €600.

- Legal Due Diligence and Compliance: If your company is part of a larger group or if you're planning to engage in cross-border transactions, additional legal services such as due diligence checks and compliance reviews might be necessary. Legal fees for these services can vary but are generally around €1,000 to €3,000, depending on the level of due diligence and the firm's rates.

3. Tax Registration and Financial Setup Costs

Cyprus has a competitive tax regime with a corporate tax rate of 12.5%, making it a popular choice for holding companies and international businesses. However, setting up your business structure and ensuring proper tax registration requires some additional costs.

- Tax Registration Fees: To obtain a Tax Identification Number (TIN) and register for VAT (if applicable), you may incur fees of €50.

- Accounting and Audit Fees: Cyprus requires that companies have audited financial statements. The accounting fees for a new company will usually depend on a number of factors and are approximately €1200 annually for small and medium-sized businesses.

- Annual Company Filing Fees: Each year, businesses in Cyprus are required to file annual returns with the Registrar of Companies, which generally costs around €100 plus a fee charged for filing.

- Government Levy: It is a legal requirement for every Cyprus Company to pay a government levy of €350. This is payable by the 30th of June each year. In case that a company is late in paying this levy, then a penalty of 10% is imposed if paid until the 31st of August and 30% in case this is paid by the end of the year.

In case the fee is not paid, then the Registrar of Cyprus Companies may strike of the company from the registry.

4. Other Considerations

- Registered Office: The fees for a registered office in Cyprus starting from €350 and will vary based on the location and size of the service needed.

- Share Capital Requirements: The minimum share capital for a private limited company in Cyprus is €1. However, it's common to have a higher share capital (such as €1,000 or €10,000), depending on the company's business activities.

- Bank Account Setup Fees: Opening a business bank account in Cyprus is usually a straightforward process. However, some banks may charge a one-time setup fee, typically ranging from €50 to €150.

The costs associated with setting up a company in Cyprus can vary depending on factors such as the type of company, the complexity of your business, and the level of professional services you require.

Cyprus remains an attractive jurisdiction due to its low corporate tax rates, business-friendly regulations, and strategic location within the European Union. By understanding the costs and legal fees involved, you can ensure a smooth and cost-effective setup for your business venture.

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